Investing.com | Sep 29, 2020 13:28
Shares of Aurora Cannabis (NYSE:ACB), (TSX:ACB) took another hit yesterday, dropping an additional 5% on the day after it was announced that the Alberta-based marijuana grower cut ties with its once highly-touted special adviser, billionaire investor Nelson Peltz.
Peltz, the director of the fast-food company Wendy’s and the co-founder of the New York multi-billion-dollar asset management firm Trian Fund Management, joined the company in March 2019 to help Aurora expand its operations on the international stage. But during Peltz’s 18 months with the grower and distributor of medical cannabis, the company lost about US$2.6 billion (C$3.5 billion), according to estimates.
The company made the announcement in a release outlining how it will hold its annual general meeting on Nov. 12 in a virtual-only format due to the COVID-19 pandemic.
According to a report in Marijuana Business Daily, Aurora granted Peltz options to buy almost 20 million shares at a price of C$10.34 (USD $7.73). The stock has since dropped about 96%. Aurora stock closed yesterday at US$4.78, C$6.50 on the TSX.
Last week, Aurora reported a net loss of more than C$1.8 billion for its fourth quarter, ending the fiscal year with a C$3.3-billion loss (USD $2.5B). Net revenue for the quarter that concluded June 30 was C$72.1 million (USD $53.9M), down about 4.5% from the previous quarter.
A London-based investment firm has announced it is seeking to raise US$100 million for a new cannabis-focused investment fund.
Chrystal Capital Partners is creating its Verdite Capital Fund. If it meets its goal, it will be the largest dedicated cannabis fund in Europe, according to media reports. The fund will be a “diversified portfolio of high-quality investments in the legal regulated medical cannabis sector,” according to Chrystal Capital.
It will include companies that produce cannabis-derived drugs and other CBD products, with half of its assets based in North America. The fund will stay away from companies that operate in the recreational marijuana market.
Verdite will be one of the few investment funds focused on the cannabis sector based outside of North America.
The California wildfires are threatening the largest outdoor cannabis crops, which are estimated to be worth millions.
One of the largest fires is making its way to one of the most lucrative legal outdoor cannabis growing areas in the U.S., a corner of northern California known as the Emerald Triangle. The crop there, where plants now tower into the sky, some as tall as 16 feet, are in full budding. The legal crop is estimated to be worth in the neighborhood of USD $20 million (CAD$27.8M).
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.