Shares of Aurora Cannabis Inc. ACB, +2.82% gained 0.8% in premarket trade Monday, after the Canada-based company announced a deal to buy Whistler Medical Marijuana Corp. in a stock deal valued at up to C$175 million ($131.8 million). Whistler, which sells medical cannabis derivatives internationally to Australia and the Cayman Islands, and plans to pursue additional international opportunities, is one of Canada’s original 10 licensed producers, and was the first producer to obtain organic certification, Aurora said. Once Whister’s second facility is fully operational, expected in Summer 2019, it will have production capacity of over 5,000 kilograms a year. “This transaction adds an iconic, organic certified BC-based brand with exceptional traction and a significant price premium in both the medical and retail markets,” said Aurora Chief Executive Terry Booth. Aurora’s stock has tumbled 39.4% over the past three months through Friday, while the ETFMG Alternative Harvest ETF MJ, +0.19% has dropped 21.5% and the S&P 500 SPX, -0.54% has lost 6.2%.
Aurora Cannabis Inc. shares were trading at $6.48 per share on Monday morning, up $0.10 (+1.57%). Year-to-date, ACB has gained 30.65%, versus a 3.19% rise in the benchmark S&P 500 index during the same period.
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