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A master cultivator at Aurora Cannabis holds leaves at the company’s operations near Cremona, Alta.Jeff McIntosh/The Globe and Mail

Aurora Cannabis Inc. has signed deals to acquire an initial minority stake in The Green Organic Dutchman Holdings Ltd. and to purchase up to 20 per cent of TGOD's annual cannabis production.

Aurora says it plans to acquire a 17.62 per cent stake in the privately held company for $55-million.

Aurora will also have the option to incrementally increase its ownership interest to 51 per cent once TGOD meets certain corporate, operational, construction and financial milestones.

TGOD is building a high-technology greenhouse in Valleyfield, Que., where it owns a 30-hectare property.

Under the proposed supply agreement, Aurora will have the right to purchase up to 20 per cent of TGOD's annual production of cannabis from its Ancaster, Ont., and Valleyfield facilities.

The supply contract also gives Aurora the right to purchase up to 33 per cent of the production at the two facilities if it increases its ownership interest to 31 per cent.