Global Cannabis Company? Aurora Another Step in that Direction
Aurora Cannabis Names Billionaire Nelson Peltz as Strategic Adviser in Bid to Become Global Cannabis Company – LPC
Aurora Cannabis Inc. announced that Nelson Peltz would join as strategic adviser to help guide Aurora to global cannabis company status. The billionaire and “celebrity” investor is chairman of Wendy’s and sits on the board of several blue chip companies including PepsiCo. and Procter & Gamble. He is also founder of the New York-based Trian Fund Management LP, which manages US$10 billion. Peltz’s role will be to advise Aurora on “potential partnerships with leading corporations” the company announced.
“Nelson is a globally recognized business visionary with a strong track record of constructive engagement,” said Aurora CEO Terry Booth. The global cannabis company to be hopes his celebrity investor status will drive growth and shareholder value “across many verticals of great interest to us.”
For his part, Peltz sees an opportunity. “I believe Aurora has a solid execution track record (and) is strongly differentiated from its peers,” Peltz said. “I look forward to helping Terry and the extended Aurora team evaluate its many operational and strategic opportunities.” He also referred to “potential engagement” with “mature players in consumer and other market segments.”
Global Cannabis Company Move Cheered by Investors – LPC
So far, mission accomplished. Aurora’s stock jumped 7 per cent hitting at least US$8.60 in early New York trading. Aurora granted Peltz 20 million options at C$10.34 each, which is below Tuesday’s close of C$10.64. If Peltz exercises all options, he would become Aurora’s second-largest shareholder.
The announcement comes on the heels of other Canadian operations making the move to global cannabis company. Canopy Growth Corp. recently partnered with Constellation Brand Inc. and is expanding into New York after the US legalized hemp in December. Similarly, the Chronos Group partnered with Altria Group Inc.
Both Aurora and Canopy have plans to expand cannabis operations to Europe, truly making them global cannabis companies. The move towards becoming a global cannabis company may also give them more leverage as the expected consolidation in the cannabis industry continues.
The cannabis industry continues to attract high profile names including Snoop Dogg and Martha Stewart. Peltz is perhaps the highest-profile investor to join the space. His acumen and celebrity status may help Aurora in its bid to become a global cannabis company.
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