Could an Aurora Cannabis and Aphria Merger Actually Happen?

: ACB | Aurora Cannabis Inc. News, Ratings, and Charts

ACB – A merger for Aurora Cannabis (ACB) and Aphria (APHA) could be on the horizon.

This week, it was reported that Aurora Cannabis (ACB) and Aphria (APHA) recently held advanced talks to merge in what would have been one of the largest mergers in the cannabis sector to date. Those discussions broke down late last week, according to two people familiar with the matter.

Two sources told BNN Bloomberg Both that the companies took a step back from negotiations after failing to agree on board structure and compensation for senior-level executives. They did not know if the two companies would resume talks.

Michelle Lefler, Vice-president of Communications at ACB, told BNN Bloomberg in an email that the company’s corporate policy is “not to comment on rumors or speculation.” APHA was also silent on the matter as a spokesperson for APHA did not provide comment after multiple requests from BNN Bloomberg.

Before the negotiations came to a halt, executives came to a partial agreement that would have seen APHA shareholders control approximately 51 percent of the combined company. ACB shareholders would own the remaining 49 percent. According to one of the sources who were not familiar with the planned exchange ratio, the deal would have been conducted through a share swap. APHA CEO Irwin Simon was set to become Chief Executive Officer of the new company.

This would be a blessing for ACB shareholders because APHA is already profitable and has a better balance sheet than ACB. This might also explain why ACB is taking such a long time to announce a new CEO. My only concern with the potential merger is the massive debt that ACB still holds on its balance sheet. The details of this transaction are still under wraps as this is just a rumor right now, but as the cannabis sector continues to consolidate, this is something investors should keep in mind.

Overall, an ACB and APHA merger would make sense, and in my opinion, could be what both companies need to take the number one spot in the Canadian cannabis sector away from CGC.

Disclosure: The author is long APHA and ACB

Want More Great Investing Ideas?

9 “BUY THE DIP” Growth Stocks for 2020

Top 5 WINNING Stock Chart Patterns

7 “Safe-Haven” Dividend Stocks for Turbulent Times


ACB shares were trading at $12.17 per share on Wednesday afternoon, up $0.42 (+3.57%). Year-to-date, ACB has declined -53.05%, versus a 0.85% rise in the benchmark S&P 500 index during the same period.


About the Author: Aaron Missere


Aaron is an experienced investor who is also the CEO of Departures Capital. His primary focus is on the cannabis industry. He also hosts a weekly show on YouTube about marijuana stocks. Learn more about Aaron’s background, along with links to his most recent articles. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
ACBGet RatingGet RatingGet Rating
APHAGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Does Trump Change Stock Market Outlook?

The rally of the S&P 500 (SPY) after the election gives a sense that investors are happy that Trump was elected. But perhaps there is more to this story than meets the eye. That’s why Steve Reitmeister shares his updated market outlook taking into account the pros and cons of Trumps proposed new policies. This comes with a preview of his top 11 stocks to buy now.

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Updated Stock Market Expectations

The S&P 500 (SPY) has already reached an impressive goal of hitting 6,000. Yet you can see how much shares are struggling now up against this resistance. Steve Reitmeister shares his views on what comes next for the market and his top 10 stocks to stay on the right side of the action.

Read More Stories

More Aurora Cannabis Inc. (ACB) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All ACB News