Aurora Cannabis’ stock jumps after sale of rest of Green Organic Dutchman stake for C$86.5 million
The U.S.-listed shares of Aurora Cannabis Inc. rallied 2.7% in premarket trading Wednesday, after the Canada-based cannabis company said it sold of the remaining 28.83 million shares of The Green Organic Dutchman Holdings Ltd. that it owned at a price of C$3.00 a share for gross proceeds of C$86.5 million ($64.9 million). The Green Organic Dutchman’s stock closed Tuesday at C$3.51. Aurora said the sale represented 10.5% of the The Green Organic Dutchman’s (TGOD) shares outstanding. Aurora said it no longer holds any shares of TGOD, but it does own warrants to buy 16.7 million TGOD shares. “When we acquired Whistler Medical Marijuana Corporation — an iconic and premium organic cannabis producer — our interest in TGOD became less important to our core strategy,” said Aurora Chief Executive Terry Booth. “Our return on our TGOD investment is significant and will add non-dilutive capital and further enhance our strategy to remain a dominant force in the global cannabis industry.” Aurora’s U.S.-listed shares have climbed 14.3% year to date and TGOD’s U.S. stock has run up 45.3%, while the ETFMG Alternative Harvest ETF has lost 1.2% and the S&P 500 has gained 15.9%.
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