Canada-based Aurora Cannabis Inc. ACB, +4.00% ACB, +3.78% announced Tuesday an agreement to buy the Hempco Food and Fiber Inc. sharesHEMP, +12.09% it doesn’t already own in a deal that values Hempco at C$63.4 million ($47.4 million). Aurora’s U.S.-listed shares rose 0.7% in premarket trade, after falling 4.2% on Monday to close at a 1-month low. Under terms of the deal, Aurora will pay C$1.04 for each of the 48% of Hempco shares outstanding that it doesn’t own, which is 14% above Monday’s closing price. “This transaction will enable us to fully integrate Hempco and its new Nisku processing facility into Aurora’s global hemp operations including Agropro, Borela and ICC,” said Aurora Chief Executive Terry Booth. “Our goal is to strengthen our CBD-from-hemp supply chain as well as our hemp business of hemp-based superfoods, nutraceuticals and fibers.” Aurora’s stock has run up 71.6% year to date through Monday, while Hempco shares have lost 13.3%, the ETFMG Alternative Harvest ETF MJ, +1.50% has rallied 35.9% and the S&P 500 SPX, +0.16% has gained 15.9%.
Aurora Cannabis Inc. shares were trading at $8.83 per share on Tuesday morning, up $0.32 (+3.76%). Year-to-date, ACB has gained 78.02%, versus a 16.63% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of MarketWatch.