The cannabis company continues to see its stock stabilize as it launches a major rebound initiative
Amid the great momentum for the Canadian cannabis venture Aurora Cannabis, the company has taken a solid step toward entry into the US market. According to the latest reports that were released yesterday, the company has acquired all stocks of Reliva, a privately-held cannabis company. In this transaction, Aurora will pay $40 million in an all-stock deal that should be “immediately accretive to Aurora on an adjusted EBITDA basis,” said the company. The transaction is still in progress and is expected to be finalized at some point during June.
Aurora has been fighting strong for survival in the US stock market. It recently completed a 1-for-12 reverse stock split due to the threat of getting delisted from the New York Stock Exchange because its price per share went down the minimum of $1 required by the exchange. “Aurora and Reliva will partner to create an international cannabinoid leader that we believe can deliver robust revenue and profitable growth,” said Michael Singer, executive chairman and interim CEO of Aurora in a statement. Singer added that this decision will simplify the process of Aurora’s “entry into the U.S. market and we firmly believe that the combination with Reliva will create significant long-term value.”
Aurora has been working on the recreational and medical cannabis market in markets across Canada and Europe. Relive, on the other hand, is a hemp-derived cannabidiol (CBD) company and its products that can be found in US retail stores across the country. This news was well-received by the cannabis stock market investors, with Aurora’s share rising 25%, from $3.25 to $16 in after-hours trading.