AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF)
AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) plans to expand its footprint in the cannabis business with the acquisition of a 19.9% stake in Hempco Food and Fiber. The Canadian company is currently in discussions with the company’s owners as it eyes a majority stake.
Acquiring a controlling stake in Hempco comes at a time when the cannabis industry is experiencing rapid growth. Hempco acquisition should expand AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF)’s product portfolio and give it a competitive edge in the multibillion industry.
Hempco continues to grow at an impressive rate. The company recently posted a 136% increase in revenues, helped by a diversified product line that includes packaged food products, Hemp fiber, and nutraceuticals. A growth in demand for Hemp products has prompted the company to expand its production facility as it looks to double its current capacity of about 225,000 kg per month.
“Hempco is a rapidly expanding company with a strong and broadly diversified product offering, across a variety of health-related markets. Leveraging our relationship with extraction leaders, the potential to develop a high-volume, low-cost source for CBD-based products creates significant upside potential, making this transaction particularly attractive,” said Aurora CEO, Terry Booth.
A merger with Aurora according to Hempco CEO, Charles Holmes, will open doors for new resources needed to fuel commercial development. The executive also expects the company’s strong brand to strengthen their competitive edge in the race for market share.
In a bid to bolster Hempco prospects in the Hemp business, Aurora has agreed to loan the company $750,000 at an interest rate of 8%. The loan is to be repaid before June 8, 2019. Aurora has also agreed to participate in a private placement with Hempco for the acquisition of 10,558,676 units. Each unit is priced at $0.3075 and consists of one share and Warrant for the purchase of additional shares.
Separately, AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) has confirmed the appointment of Allan Cleiren as its new Chief Operational Officer. He joins the company with three decades of leadership experience in finance and operations management. Mr. Cleiren is tasked with the responsibility of pursuing future opportunities as well as ensuring seamless integration of domestic and international acquisitions.
AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) stock was down by 0.19% in Wednesday’s trading session to end the day at $1.61 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.