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ACB is halted. Seeing rumor of 25% reduction in staff. We shall see.
It's no secret that there is 25 year vet of Mondelez on the ACB Board of Directors. His "feelings" have been circling rumors on this board for some time now.
Wasn't sure if you were aware of that. That's all.
Its poppin up after hours. We shall see how the market responds.
This CBD company is EBITDA positive already. Has been for the past 12 months.
That adds to ACBs bottom line towards their EBITDA positive goal. Don't like the purchase vehicle obv. But we a U.S. direct line now.
Aurora Cannabis to Strategically Enter the United States with Acquisition of Reliva, LLC A Market Leading Mass Retail CBD Platform
NEWS PROVIDED BY
Aurora Cannabis Inc.
May 20, 2020, 16:15 ET
NYSE | TSX: ACB
All Share Transaction – Immediately Accretive to Shareholders on an Adjusted EBITDA Basis
Profitable Today, Reliva Adds Strategic Entry to the U.S. that is Aligned to Aurora's Business Transformation Plan
Adds Miguel Martin, Veteran International Consumer Packaged Goods Executive to Aurora Management Team
Reliva Provides Aurora with Top Ranked Retail Hemp-Derived CBD Brand Currently Sold in Over 20,000 Mass Retail U.S. Locations
EDMONTON, May 20, 2020 /PRNewswire/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (NYSE | TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, and Reliva, LLC ("Reliva") a leader in the sale of hemp-derived CBD products in the United States, are pleased to announce that they have entered into an agreement pursuant to which Aurora will acquire all of the issued and outstanding membership interests of Reliva. Under the terms of the agreement, members of Reliva will receive approximately US$40 million of Aurora common shares. The transaction also includes a potential earn-out of up to a maximum of US$45 million payable in Aurora shares, cash or a combination thereof, over the next two years contingent upon Reliva achieving certain financial targets. The structure of the earn-out is designed to align risk and reward between Aurora shareholders and Reliva management to focus on continued strong operational and financial execution. The transaction is expected to close, subject to customary closing conditions, in June 2020. It is anticipated that the transaction will be immediately accretive to Aurora on an Adjusted EBITDA basis, consistent with Aurora's objective to drive towards Adjusted EBITDA profitability in its fiscal first quarter of 2021.
The transaction will combine Aurora's leading Canadian recreational brands, and Canadian and European medical market position with the leading U.S. hemp-derived CBD brand in retail stores. Consistent with the announcement of Aurora's business transformation plan in February 2020, the Company has aligned its U.S. investment strategy with the goals of the transformation plan, namely: financial discipline, operational focus, and strong execution. The transaction represents the culmination of a multi-month strategic evaluation of the U.S. hemp-derived CBD industry. Reliva stood out among a lengthy list of potential partners for its: (1) focus on regulatory, testing and compliance protocols; (2) proven management team with extensive experience selling and marketing regulated consumer packaged goods; (3) deep relationships with critical trade partners that provide a U.S. national distribution footprint; and (4) financial discipline and track record of growth and profitability. Together with Reliva, Aurora is expected to be positioned as a meaningful player in the United States, the world's largest cannabinoid market.
Management Commentary:
"Together, Aurora and Reliva will partner to create an international cannabinoid leader that we believe can deliver robust revenue and profitable growth," said Michael Singer, Executive Chairman and Interim CEO of Aurora. "We have taken the time necessary to carefully assess the Company's entry into the U.S. market and we firmly believe that the combination with Reliva will create significant long-term value as Reliva provides us options to grow in hemp-derived CBD internationally. Similar to Aurora, Reliva has a strong entrepreneurial spirit and successful track record of transforming categories and creating growth brands. We welcome Miguel Martin and his team to Aurora, and look forward to the opportunity to increase our operating scale, international reach, and product and brand diversity as we drive to Adjusted EBITDA profitability. We plan to capitalize on each company's market leadership and sales infrastructure to drive higher revenue growth than either company could independently accomplish."
Miguel Martin, CEO of Reliva commented, "We're excited to join Aurora's leading platform as we combine our highly complementary businesses and brands to build an even stronger company for future international success. We were fortunate enough to be able to choose our long-term partner and believe this partnership provides a significant opportunity to accelerate sales growth for Reliva in the United States and internationally. I am particularly pleased about the benefits that this combination will have for current and future trade partners. With the assistance of Aurora, we believe enhancements to Reliva's innovation, consumer insights and marketing systems will allow our portfolio of hemp-derived CBD products to become even more attractive to retailers and consumers in this exciting new category."
Key Strategic and Financial Highlights:
The transaction will create a large and diversified pure-play international cannabinoid company. Aurora believes the combination will provide the following strategic and financial benefits:
Immediately Accretive to Aurora Shareholders: Transaction is aligned with Aurora's business transformation plan announced in February 2020 and provides immediate benefit to Aurora's objective to achieve Adjusted EBITDA profitability in the first quarter of fiscal 2021
Reliva has generated positive EBITDA in the last 12 months ended March 2020
Transaction is expected to be Adjusted EBITDA accretive to Aurora shareholders in fiscal 2020 and fiscal 2021
Reliva is debt free
No capital expenditures or additional working capital investment is currently required
Addition of Experienced Management Team: The transaction will add a talented U.S. management team, with strong international consumer packaged goods backgrounds and a proven track record of growth, to the core Aurora team
Management has 40+ years of experience in sales and marketing of regulated consumer packaged goods led by Miguel Martin, a 25 year CPG veteran
Former President and General Manager of Logic Technology, one of the largest manufacturers of electronic cigarettes
Former Senior Vice President and General Manager of Altria Sales & Distribution
Upon closing of the transaction, Reliva's management team will remain in place with Miguel Martin continuing on as President of Aurora USA, and joining the Executive Leadership Team of Aurora, reflecting his commitment and belief in the future success of the combined company
Reliva's culture is deeply rooted in operating in highly regulated industries and producing and marketing products with high degree of testing and compliance
Creation of the Leading Global Cannabinoid Platform: The combined company will have a leadership position in the global medical and Canadian recreational cannabis markets along with a leading market position in hemp-derived CBD in the U.S.
CBD opportunity expected to be as large as US$24 billion at retail in 2025, according to the Brightfield Group
Reliva ranked #1 in topicals and #2 overall market share according to IRI with product availability in over 20,000 retail locations and via e-commerce
Creates opportunity to leverage Reliva's leading U.S. brand position into international markets
Only CBD company in the three largest U.S. wholesale distributors
Contracts with leading retailers including 8 of the top 20 national convenience store chains
Positions Reliva at the forefront of the growing sports category supporting Aurora's UFC partnership
Marketing assets afforded to Aurora through the UFC partnership may eventually support awareness of Aurora/Reliva CBD products
Combines Aurora's best-in-class scientific and product innovation expertise with Reliva's nation-wide distribution footprint and speed to market experience:
Portfolio of high quality, rigorously tested and compliant hemp-derived CBD product formats
Leverage Aurora's existing scientific expertise to further advance cannabinoid product innovation
Advisors
Cowen served as exclusive financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to Aurora. Saul Ewing Arnstein & Lehr LLP acted as legal counsel to Reliva.
About Aurora
Aurora is a global leader in the cannabis industry serving both the medical and consumer markets. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis dedicated to helping people improve their lives. The Company's brand portfolio includes Aurora, Aurora Drift, San Rafael '71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, and ROAR Sports. Providing customers with innovative, high-quality cannabis products, Aurora's brands continue to break through as industry leaders in the medical, performance, wellness and recreational markets wherever they are launched. For more information, please visit our website at www.auroramj.com.
Aurora's Common Shares trade on the TSX and NYSE under the symbol "ACB", and is a constituent of the S&P/TSX Composite Index.
About Reliva
Reliva is a leader in delivering high quality hemp-derived CBD products to consumers. Built on a philosophy of compliance, testing, product innovation and approachable price points Reliva has grown to become one of the largest retail CBD brands in the U.S. Supported through long-term partnerships with leading national wholesalers and retailers Reliva's products can be found in over 20,000 retail stores. Reliva's management team, which has decades of regulated product experience, is uniquely positioned to manage this dynamic and rapidly growing category. For more information, please visit our website at www.relivacbd.com.
Forward Looking Statements
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These forward-looking statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions, estimates and assumptions of management in light of management's experience and perception of historical trends, current conditions and expected developments at the date the statements are made, such as current and future market conditions, the current and future regulatory environment and future approvals and permits. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements, including the risks associated with: entering the U.S. market, the ability to realize the anticipated benefits associated with the acquisition of Reliva, achievement of Aurora's business transformation plan, general business and economic conditions, changes in laws and regulations, product demand, changes in prices of required commodities, competition, the effects of and responses to the COVID-19 pandemic and other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual information form dated September 10, 2019 (the "AIF") and filed with Canadian securities regulators available on the Company's issuer profile on SEDAR at www.sedar.com and filed with and available on the SEC's website at www.sec.gov. The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
The Company uses financial measures regarding itself, such as Adjusted EBITDA, that do not have standardized meaning under the International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures presented by other entities ("non-IFRS measures"). Further information relating to non-IFRS measures, is set out in the Company's management discussion and analysis for the three and six months ended December 31, 2019 and 2018 under the heading "Cautionary Statement Regarding Non-GAAP Performance Measures" and the "Revenue" section for reconciliation to the IFRS equivalent.
SOURCE Aurora Cannabis Inc.
250 Million coming pre RS it looks like to me. So I agree. The plus here is Aurora only elected to use 250 of the 350 million available. 400 million of the 650 has been completed.
https://thedeepdive.ca/aurora-cannabis-increases-us400-million-at-the-market-offering-to-us650-million/
Fifth- This industry is still in its beginning stages. Doors are opening.
Sixth- Potential for major partnership deals. Whether people can see it or not. They have ties already with a few. These ties def would of wanted the books cleaner.... hence the cleanup. It will take time.
Seventh- The uses and potential uses for their products. They have their hands in a few categories.
Its been a ruff ride no doubt. But Aurora is a major player in this market.
Some companies have already filed for credit protection.
Most companies that people are saying aren't doing reverse splits got money from a partnership. Aurora has not. Yeah, they dug themselves a hole. But they can can get out and right the ship.
Time will tell.
Im holding.
I see some scenarios and some light.
How CCAA May Save the Canadian Cannabis Industry
https://www.restructuradvisors.com/post/how-ccaa-may-save-the-canadian-cannabis-industry
ACB Shane tweeted this
Israeli scientists: 'In a few weeks, we will have coronavirus vaccine' - The Jerusalem Post https://t.co/61KJnT1Flj
— Shane Morris (@DrShaneMorris) February 28, 2020
This whole industry is shifting gears. Some players are emerging. Some are fading. And its not even close to settling. Nobody really knows who has aces up the sleeve. Still a lot of red tape and things to unfold. I seen this about Canopy.
*It was not all good news for Canopy, however. Jefferies analyst Owen Bennett wrote in a note to clients early Friday that while the headline numbers will “provide relief,” areas of concern remain in the details.
Bennett said the company’s market share declined to 22%, despite the fact that the company nearly doubled its retail footprint; Canopy also issued guidance with a “modest” fiscal fourth-quarter sales increase, which suggests their market share will continue to decline. Bennett has the equivalent of a sell rating on the name with a C$21 target price.*
Sell rating and declining market share for Canopy.... who some liked their report.
Point is that you know what they say about opinions...
Story is still unfolding for ACB... which still remains a very large player in the field. The bones and foundation are there. Lots of assets. I believe it def got ahead of the market. Time will tell if it can hold on.
I believe it can.... opinion.
https://aurorahemp.com/
Came across this.
Cam and Booth are not in charge anymore. They're not allowed to play with sharp objects...pencils for notes....knives. ect
Seen some talk about Canopy might be shutting down their Aldergrove facility.
Similiar moves to align with market as Aurora maybe.
What is the deal with the "Daily Special"?
Anyone aware of this approach?
https://shopcannabisnl.com/collections/aurora/products/daily-special-indica
The last sentence? It's one sentence. Lol
Thanks for the chuckle.
Interesting background on the new ACB Board member.
Michael Detlefsen
Pomegranate Capital Advisors Inc
SERVICES
WE POSSESS DEEP EXPERTISE IN:
Food and Agribusiness
Consumer Products
Transportation and Logistics
WE FOCUS ON:
Turnarounds and restructurings
Accelerated growth strategies
Interim executive roles
Investment oversight
Board representation
Mergers, acquisitions and divestitures
Activist investor initiatives
Aurora Cannabis CEO Terry Booth is stepping down and company plans layoffs sources say - MarketWatch
https://www.marketwatch.com/story/aurora-cannabis-ceo-terry-booth-is-stepping-down-and-company-plans-layoffs-sources-say-2020-02-06
Tilray is laying off 10% of their workforce. The industry is restructuring. ACB is still hiring people last I heard. Interesting times ahead. Unfold, unfold, unfold.
I do remember them. I also remember traders do the same thing. Go backwards and forwards.
I was responding to a question about ACB.
My opinion wasn't in the response.
Emotional people only see and hear what they feel.
I could say I see a huge business getting leaner. What would you say to that?
You already know the answers to those questions.... and you "should" know that I was responding to someone else's post. Therefore, it is merely an answer about an ACB article. Not my opinion.
The Market's Reaction To Cam Battley's Perceived Resignation Was Misplaced
The Company Could Bring In A Klein-Type CEO
The Selling Of Its Greenhouse Should Be Seen As Good News
The Trend Hasn't Worsened
No problem. Thanks for including the text. Forgot some may not have a Twitter account.
Aurora was voted Favourite Producer in the @Leafly Readers’ Choice Awards this week! We also took home the awards for Favourite CBD Flower and Favourite Balanced Oil. Thank you to all who voted. pic.twitter.com/p2DTNg43I8
— Aurora Cannabis (@Aurora_MMJ) January 24, 2020
Millions of people on this planet buy bottled water....yep. Bottled water. Some buy cheap bottled water. Some buy very expensive bottled water. Yet water comes right out of almost everyone's home faucet.
Crazy to think this. But there is a huge market for it.
ACB and the whole industry will be just fine. It will evolve and it will grow. Even though it is "just a plant". This "plant" will be at the center of many uses for many causes. It will affect millions of people. And there will be levels spread high and low for everyone in numerous applications. So many applications that some can't even fathom the reach.
The fat will be trimmed. Don't get me wrong. The industry will cycle through phases. But some companies will be left standing. Those that focus on the benefits of this "plant" and ALL its uses.
Some people like ACB.
Some people think it will go up.
Some people think it will go down.
Some people like to smell their own farts.
Some people have bad breath when they talk...
I would think "long-longs" are typically still holding and not looking to sell anytime soon. Hence why they are 'long-longs". So I would think that this would apply to people who have sold and actually took losses....
I'm with the majority on your amazing posts.
I took it as Avicanna will look for medical grade cannabis suppliers to buy from... then distribute via online orders.
It says they "previously" had deals with Aurora and MedRelief (which) Aurora owns.
Aurora owns 25% of "Alcanna" correct? Is Avicanna a different company? That's what I was thinking.
1,307 stores it looks like. Medical cannabis. I would assume ACB would be in the running here to supply. Online sales as well.
Could be something very solid here.
Is it because it's in a reverse merger with Folium Biosciences?
And ACB is connected through Australis?
What does this tweet mean to you? I'm curious why Dr. Shane Morris, Chief Product Officer of Aurora Cannabis, would post this. It definitely shows Aurora Drift on the package. Is he considered an insider?
Edible and vape products doing well. https://t.co/3t8VaDcXeD
— Shane Morris (@DrShaneMorris) December 27, 2019
Little spike up tomorrow? Let's see if my suspicion is true.
Still so much to unfold here with ACB
He is no longer the "CCO"
Chief Corporate Officer for Aurora
Doesn't look like it was the author of this article.
"We strongly disagree with Johnson and the more we look at his arguments, the more we think he is just desperate for attention."
Pretty sure he was referencing the lawsuit link in the post. Saying those people are blind. I could be wrong though.
Aurora Cannabis Inc (NYSE:ACB) gets upgraded to Overweight by Cantor Fitzgerald - Market Exclusive
https://marketexclusive.com/aurora-cannabis-inc-nyseacb-gets-upgraded-to-overweight-by-cantor-fitzgerald/2019/11/
I would say that's fairly big. Over a million dollar block. Interesting. Thanks for the response.
Can you define the word "ton"? What kind of blocks are you seeing?
Still squeezing inside the Ascending Triangle. 2mrw will be telling. Then a couple more days to the tip....If it stays at current levels and ticks up a little each day we could see a pop.
If it drops then hard to say.
Next PR will direct imo... the timing is very close.