2. Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) announced that it was acquiring MedReleaf Corp (OTCMKTS:MEDFF, TSE:LEAF). The until-now rumored Aurora-MedReleaf acquisition has culminated in a $3.2-billion blockbuster deal.
Canopy Growth Stock News
As I said many months back when Cronos Group Inc (NASDAQ:CRON) was the first pure-play marijuana stock to list on a major international stock market, Canopy Growth stock was probably the most likely to follow suit.
After all, Canopy Growth had been looking into getting a stock ticker on a major international exchange as far back as 2017. The announcement of the company’s plans alone was enough to boost WEED stock at the time.
After all, despite the recent pullback on CRON stock, Cronos Group was able to reap several strong weeks of gains following its move onto the Nasdaq.
Not to mention that TWMJF stock has been one of the most internationally focused stocks around. That means the company is going to appeal to U.S. investors who are concerned that too many Canadian marijuana companies are banking on the relatively small Canadian marijuana market in order to justify their market caps.
Case in point: CRON stock lost a good bit of value due to the perception that its numbers—while strong—were not sufficient to justify its market cap.
Cronos Group has also focused on spreading its seed internationally, but, compared to Canopy Growth, it’s still a good bit behind.
Chart courtesy of StockCharts.com
We’ve long covered how some U.S. investors are skittish when it comes to buying stocks not listed on their preferred exchanges—the Nasdaq and the NYSE.
Aurora Cannabis Stock News
The merger will see Aurora’s production capacity jump to 570,000 kilograms a year, deriving from nine facilities in Canada and two in Denmark. The merger will also help expand Aurora’s international presence across Europe, South America, and Australia.
“We’re not done,” said Aurora CEO Terry Booth. “Over the next couple weeks you’ll see some more activity from Aurora.” He explained, however, that it will not be on the scale of the MedReleaf deal. (Source: “Two Canadian Companies Are Merging in the Biggest Weed Deal Ever,” Bloomberg, May 14, 2018.)
Aurora has always been an aggressive player when it comes to acquisitions, with the previous largest deal in the market being its own takeover of CanniMed Therapeutics Inc.
Aurora is spending a lot of money and expanding fast. While its latest quarterly report was a strong one, and the company is poised to take the marijuana market by storm, there are still fears that it is being a little too aggressive.
It’s beginning to look like the summer reprieve we’ve all been waiting for has arrived, with a recovery likely to follow the deeper we dive into the season.
Couple that with huge moves from the industry’s biggest players, and you have what is going to be—in my estimation—a very bullish July and August.