Stock of the Day

October 20, 2022

Aurora Cannabis (ACB)

$4.03
-$0.02 (-0.6%)
Market Cap: $261.63M

About Aurora Cannabis

Aurora Cannabis Inc., together with its subsidiaries, produces, distributes, and sells cannabis and cannabis-derivative products in Canada and internationally. It operates through three segments: Canadian Cannabis, European Cannabis, and Plant Propagation. The company produces, distributes, and sells medical and consumer cannabis products in Canada. It is also involved in the distribution of wholesale medical cannabis in the European Union (EU); distribution of wholesale medical cannabis in various international markets, including Australia, the Caribbean, South America, and Israel; supply of propagated vegetables and ornamental plants in North America; and distribution and sale of hemp-derived cannabidiol (CBD) products. In addition, the company cultivates and sells dried cannabis, cannabis oils, capsules, edible cannabis, cannabis extracts, and soft gels, which are ingested in various ways, including smoking, vaporizing, and consumption in the form of oil, capsules, edibles, and extracts; and provides dried flowers, vapes, dried milled strains, strain-specific extracts, strain specific cannabis oils, and concentrates. Further, it offers recreational cannabis products, such as flowers, vapes, ingestibles, concentrates, extracts, and CBD products; and patient counseling and outreach services. The company's adult-use brand portfolio includes Aurora Drift, San Rafael '71, Daily Special, Whistler, Being, and Greybeard, as well as CBD brands, Reliva and KG7; and medical cannabis brands include MedReleaf, CanniMed, Aurora, Whistler Medical Marijuana Co, Pedanios, Bidiol, and CraftPlant. Aurora Cannabis Inc. is headquartered in Edmonton, Canada.

Today's Trend

Aurora Cannabis Inc. (NASDAQ: ACB) shares have decreased in the latest trading session as investors assess Curaleaf’s unsolicited takeover bid, alongside Aurora’s expansion of its international medical-cannabis operations.

  • Expansion in the U.K. medical-cannabis market: Aurora acquired Internode Pharma, a licensed importer and wholesaler, and HAP Pharma, a licensed pharmacy. The transactions are intended to expand Aurora’s distribution access and strengthen its presence in the growing U.K. market. The companies described the acquisitions as accretive, although financial terms were not disclosed. Aurora Cannabis U.K. acquisitions
  • Curaleaf formally launched its unsolicited bid: Curaleaf is offering stated implied consideration of approximately US$4.00 per Aurora share, consisting of 0.3463 Curaleaf subordinate voting shares plus US$0.75 in cash. The proposal provides a valuation reference and potential takeover premium, but its value can fluctuate with Curaleaf’s share price and the transaction remains uncertain. Aurora confirms Curaleaf takeover bid
  • Takeover uncertainty is weighing on sentiment: Aurora urged shareholders to take no action while it evaluates the bid, characterizing Curaleaf’s approach as hostile and alleging that it seeks to acquire Aurora’s global medical-cannabis platform and EU-GMP facilities at a low price. The dispute could create prolonged deal uncertainty, potential dilution for Aurora holders and volatility in both companies’ shares. Aurora response to Curaleaf bid

Overall, the U.K. acquisitions support Aurora’s long-term growth strategy, but the immediate stock focus is the contested Curaleaf offer. Investors are likely weighing the possible takeover premium against the bid’s stock-based consideration, execution risk and Aurora’s opposition.

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