Aurora Cannabis Looking Forward as Dual Mileposts Arrive Concurrently

Aurora Cannabis Inc (TSE:ACB) (OTCQB:ACBFF) (FRA:21P) investors can finally look forward. After the largest cannabis acquisition in history (January 2018) brought little reprieve for investors since January, Aurora begins afresh as a stand-alone entity. Surely, a change in environs couldn’t hurt at the present time.

After the bell, Aurora Cannabis announced it has completed the acquisition of all issued and outstanding shares of CanniMed Therapeutics Inc. that it didn’t already own. And with this action, the merger becomes official. In the words of CEO Terry Booth: “We have now fully completed the largest acquisition in the history of the cannabis sector and continue to progress well with our integration activities to accelerate growth of both Aurora and CanniMed”.

As a result of the final tranche of 1.2 million CanniMed shares changing sides, CMED shares were de-listed from the Toronto Stock Exchange at business close today. The company plans on ceasing on reporting activities to Canadian security regulatory authorities as soon as practicable.

CanniMed’s last official price chimed-in at $27.00, and shares yielded a theoretical ↑251.16% from tape to tape (first closing price to last). Not a bad return for 17-month “work”.

As luck would have it, tomorrow also marks the beginning of trade for The Green Organic Dutchman IPO, giving Aurora Cannabis a second re-focus point. Aurora isn’t just any old minority stakeholder: they’re a ‘cornerstone’ investor with a 17.62% interest in TGOD and option-ability for up to 51% ownership under certain parameters. The also own 33.33 million TGOD subscription receipts at $1.65/share, with 1:1 convert-ability into equity; an investment that’s already worth $66.6 million at an expected IPO list price of $3.65/share.

Furthermore, Aurora has exercised its right to participate in the upgraded TGOD public offering on a pro-rata basis. This extra participation will augment Aurora’s immediate stake in TGOD beyond the subscription receipt holdings. While TGOD remains just another cog in the machine, it’s a significant one for Aurora Cannabis. It has the potential to usher-in increased importance if TGOD indeed becomes an industry-leading organic cannabis LP as many expect.

Ultimately, do these two events change Aurora’s aggregate investment profile? Minimally, unless The Green Organic Dutchman becomes a Goliath over time. But what it does do is shift attention on the present and give investors hope for the future.

After a rough stretch which saw the company shed↓48%, peak-to-trough, from its January 2018 peak high (albeit along with most of the sector), re-focus on today’s realities could be a welcome change.

Watch Aurora Cannabis’ Executive VP Cam Battley talk about the biggest deal in the Canadian industry’s history and how it took place.

Original article: Aurora Cannabis Looking Forward as Dual Mileposts Arrive Concurrently

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