AURORA CANNABIS IN (OTCMKTS:ACBFF) has been involved over the past 2-3 months in one of the more interesting takeover attempts we have seen in the cannabis patch possibly ever. The company’s attempt to take out CanniMed has gone through several stages and has now progressed to the point that CanniMed execs have enacted poison pill tactics to stave off the acquisition.
Aurora’s management has been predictably annoyed at this turn of events. “Since launching our offer, the feedback we have received from CanniMed’s shareholders has been overwhelmingly positive. Many of CanniMed’s shareholders are telling us that our offer represents an excellent premium for their CanniMed shares, and clearly see the considerable upside potential by becoming Aurora shareholders,” said Cam Battley, Aurora’s Executive Vice President.
AURORA CANNABIS IN (OTCMKTS:ACBFF) is a licensed producer of medical marijuana pursuant to the Marijuana for Medical Purposes Regulations and operates a 55,200 square foot expandable state-of-the-art production facility in Alberta, Canada.
ACBFF’s wholly-owned subsidiary, Australis Capital Inc., seeks to be an active participant in the U.S. Cannabis market. Aurora is trading on the Canadian Securities Exchange under the trading symbol “ACB”. The company is headquartered in Vancouver, Canada.
According to company’s materials, “Aurora’s wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”). The Company operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta, is currently constructing a second 800,000 square foot production facility, known as “Aurora Sky”, at the Edmonton International Airport, and has acquired, and is undertaking completion of a third 40,000 square foot production facility in Pointe-Claire, Quebec, on Montreal’s West Island.
In addition, the Company holds approximately 9.6% of the issued shares (12.9% on a fully-diluted basis) in leading extraction technology company Radient Technologies Inc., based in Edmonton, and is in the process of completing an investment in Edmonton-based Hempco Food and Fiber for an ownership stake of up to 50.1%. Furthermore, Aurora is the cornerstone investor with a 19.9% stake in Cann Group Limited, the first Australian company licensed to conduct research on and cultivate medical cannabis. Aurora also owns Pedanios, a leading wholesale importer, exporter, and distributor of medical cannabis in the European Union (“EU”), based in Germany.”
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As noted above, ACBFF management has been locked in a fight to acquire CanniMed. The company claims that CanniMed’s shareholders are totally on board with the takeout, but that execs at the smaller name have been working to stymie the deal out of personal self-interest.
“The actions of CanniMed’s management and Board, however, seem contrary to the wishes of CanniMed shareholders. CanniMed has adopted oppressive poison pill tactics, which appear to be driven solely by entrenched self-interest, and that purposely limit their shareholders’ rights and ability to choose. They are taking fundamental rights away from their shareholders. We want CanniMed shareholders to be able to make their own choice, and we remain open for discussion at any time to explain the strong merits of our Offer. CanniMed’s Board and management claim they are protecting their shareholders, but their actions say the opposite.”
The chart shows just under 150% piled on for shareholders of the stock during the trailing month. Market participants may want to pay attention to this stock. ACBFF is a stock who’s past is littered with sudden rips. Furthermore, the stock has seen a growing influx of trading interest, with the stock’s recent average trading volume running nearly 350% beyond what we have been seeing over the larger time frame.
Now commanding a market cap of $2199.7M, ACBFF has a significant war chest ($127.9M) of cash on the books, which is balanced by virtually no total current liabilities. ACBFF is pulling in trailing 12-month revenues of $23.2M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 168.6%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $ACBFF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $ACBFF, either long or short, and we have not been compensated for this article.