Share price of Canadian cannabis producer Aurora Cannabis (NYSE: ACB) stock has recently jumped up from its 52-week low of $5.80 in March.
Over a year after Aurora Cannabis publicly talked about entering the U.S. market, the company has now taken this step: Aurora will take over CBD maker Reliva for $ 40 million.
“This is instant access to the world’s largest CBD market,” Michael Singer, Aurora’s Executive Chairman and Interim CEO, told CNBC. The Reliva acquisition is a responsible strategic entry into the US market. ”
According to Singer, the deal supports the short-term goal of Aurora achieving profitability in the next fiscal year and the longer-term goal of entering the US CBD and cannabis market.
Reliva has no debt and has access to 20,000 retail locations in the United States. The company also has strong relationships with leading US wholesalers.
Most recently, Aurora was able to please the market with better than expected quarterly figures. The stock is now back in the focus of investors after having previously lost more than 90 percent of its value.
Have in mind that ACB stock is only suitable for highly speculative investors.