Aurora Cannabis lures Wall St titan

Photograph by Patrick T. Fallon/Bloomberg

Aurora Cannabis Stock Is Surging Because the Marijuana Company Has a Big New Partner

By Bill Alpert
March 13, 2019 

Aurora Cannabis (ticker: ACB) stock has never enjoyed the steep valuation of its rival Canadian pot producers Canopy Growth (CGC) and Tilray (TLRY). That will change, after this morning’s announcement that activist Nelson Peltz joined Aurora as “Strategic Advisor.” The news sent Aurora stock up 11% in premarket trading to 8.80.


The back story. Edmonton, Alberta-based Aurora has accumulated Buy ratings lately from analysts who note its 20% market share of Canada’s recreational pot sales and efficient production. Cowen’s Vivien Azerlaunched coverage last week, with a price target equal to $10.50. Jefferies analyst Owen Bennett noted that Aurora stock trades at a lower multiple of sales and projected cash flow than Tilray or Canopy stock.

What’s New: Peltz will work with Aurora to “explore potential partnerships that would be the optimal strategic fit for successful entry into each of Aurora’s contemplated market segments” and advise on its global expansion. In the past, the investor has shaken up consumer packaged goods companies such asProcter & Gamble (PG), Kraft Heinz (KHC) predecessor H.J. Heinz, and Mondelez International (MDLZ)—all in the path that cannabis companies want to follow, as weed becomes a mainstream product like alcoholic beverages.

For his efforts, Peltz will get options to purchase 20 million shares of Aurora at a price of 10.34 Canadian dollars (equivalent to US$7.75) over a four-year sch

edule—with accelerated vesting if certain deals close or Aurora stock reaches C$31.

Looking Ahead: While Aurora’s done well at producing cannabis, it has lagged peers in nabbing deals with big-name partners in the food and beverage industries. That will change, as it gets by with a little help from its friend.




Write to Bill Alpert at william.alpert@barrons.com
Aurora Cannabis lures Wall St titan

Aurora Cannabis has tapped Nelson Peltz, the billionaire activist investor who runs Trian Fund Management, as a strategic adviser. The Canadian company has granted Peltz stock options to buy almost 20 million Aurora common shares for $10.34 a piece. He will work on Aurora’s partnerships and global expansion as the Canadian cannabis industry looks to grow abroad by exporting and making international acquisitions. Peltz is non-executive chairman of The Wendy’s Company and a director at Procter & Gamble.


GREAT strategic move by AURORA to become the top dog in the Medical Marijuana space in Canada, and now possibly by affiliation with Peltz to become the lead MM JV company in the USA. Aurora Cannabis names billionaire Nelson Peltz as strategic advisor.

Aurora Cannabis names billionaire Nelson Peltz as strategic advisor - BNNBloomberg.ca
canadanewsmedia.ca

Tipping point begins? https://lnkd.in/eb-zhJ2 

CNBC on Instagram: “Activist investor and Trian Partners founder Nelson Peltz 

is known for making waves. Over the decades, Peltz has commanded respect across…”
instagram.com 

$ACB @aurora_invest $ACB.to moving up today on news that Nelson hashtag#Peltz is joining as an adviser: use our proxy statement search summary page to see his prior involvements across the years, and click-through for details. hashtag#proxystatement hashtag#corpgov hashtag#BOD hashtag#AuroraCannabis $PG $WEN









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Aurora Cannabis chairman describes Nelson Peltz partnership, plans for consumer expansion - Aurora's executive chairman tells CNBC that the company's partnership with Nelson Peltz is one of many relationships it hopes to foster.

Aurora Cannabis chairman describes Nelson Peltz partnership, plans for consumer expansion
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This morning’s announcement that activist Nelson Peltz joined Aurora as “Strategic Advisor” further legitimizes cannabis as an accepted industry. hashtag#stockmarket hashtag#investments