In Canada, it is legal for licensed manufacturers to produce cannabis. Therefore, many people use this cannabis with therapeutic, recreational or even medicinal purposes in mind. As such, Aurora Cannabis Inc. is one such Canadian licensed manufacturer. Accordingly, latest stock market reports have suggested that the company may be trying to sell its $13 million stakes in Aussie pot stock to the Cann Group.
About: Aurora Cannabis
Aurora Cannabis Inc., also addressed as Aurora Drift, is a licensed company dealing in medical cannabis production. Therefore, the company adheres to the regulations put forward by the Access to Cannabis for Medical Purposes Regulations (ACMPR) of Health Canada. With headquarters located in Edmonton, the company established in 2006. Terry Booth, Steve Dobler, Dale Lebsack, Chris Mayerson. Booth, as well as Dobler, provided a collective capital of $5 million for the purpose. Aurora Cannabis trades as ACB focused primarily on the Toronto Stock Exchange and New York Stock Exchange. The company owns eight licensed production facilities and operates on over 25 countries. Consequently, it stands as the second-largest cannabis producer, only after the Cannabis Growth Corporation.
Latest Decision: Aurora Cannabis
Shares of the Cann Group experienced a drop after Aurora Cannabis sold out. Originally, the company owned 31,956,347 shares, representing 11.84% company stake, which was worth $13.4 million. Nonetheless, the Cann Group announced that Aurora Cannabis had sold off its stake on October 12, 2020. Besides, this marketing transpired through off-market trades in ownership of undisclosed buyers. Subsequently, the decision followed the backlash that Aurora suffered immensely in 2019. The reason was owing to a correction after the market flooded the year with funding rounds.
Impact on Business Plans: Aurora Cannabis
This decision by Aurora Cannabis seemingly had no immediate effect on the Cann Group‘s business plans. Nevertheless, the stakes of Cann Group witnessed a 6% fall following the transaction. Furthermore, the shares of the Cann Group concluded an astounding 4.7% higher on the Australian Stock Exchange on October 12, 2020. Consequent to this latest decision, Aurora Cannabis will go on to invest around $12 million in Radient Technologies Inc. (RTI.V), a biotechnology company based in Canada. As such, this investment will raise stakes owned by Aurora Cannabis in Radient Technologies from 8.8% to an incredible 19.18%.
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