Aurora Cannabis Plans US Stock Listing in October

Aurora Cannabis Plans US Stock Listing in October

Aurora Cannabis Plans US Stock Listing in October

$ACBFF, $TLRY, $KO, $SZT

Canada’s Aurora Cannabis Inc. (TSX:ABC) said Thursday it planned a US listing of its shares in October, as it looks to cash in on strong investor appetite for marijuana producers.

Interest has boomed in Canada’s marijuana companies ahead of legalization of recreational cannabis in the country next month. Several US states and DC have also legalized marijuana but it remains illegal under US federal law.

Shares of rival Tilray (NYSE:TLRY) have surged more than 1,000% since their listing in July. The other US-listed Canadian marijuana companies include Canopy Growth Corp. and Cronos Group Inc.

Marijuana producers are in demand as several companies, including Constellation Brands Inc.(NYSE:SZT) and Molson Coors Brewing Co., are looking to tap cannabis-infused drinks market.

Aurora’s shares were up 4.7% at C$11.38 on the Toronto Stock Exchange (TSX). The company’s plan for a US listing was 1st reported by the Financial Post Wednesday.

Related story

Marijuana Rally has Just Minted 3 New Billionaires

The 1st private equity firm focused exclusively on the cannabis industry has minted 3 new billionaires.

Brendan Kennedy, Michael Blue and Christian Groh founded Seattle-based Privateer Holdings Inc. in May 2010 and the firm later invested in Canadian pot firm Tilray Inc.(NYSE:TLRY), whose market value topped $21-B Wednesday after surging more than 1,200% in the past 2 months.  The company came public in an IPO in July and is listed on the NYSE

The 3 men effectively owned about 45% of Privateer’s holdings in Tilray as of 31 March, according to the cannabis company’s prospectus.

Privateer’s stake in Tilray is now valued at $7.2-B, giving each founder a net worth of at least $2.4-B, assuming they hold equal stakes.

Billionaire Peter Thiel is among Privateer’s backers.

Wednesday, Tilray’s stock was very volatile, and trading was halted 5X because of the excessive volatility before closing up 38% at 214.06 in New York on the day

If the gains do not go up in smoke, Tilray is trading after hours at 193.89 -20.17 (-9.42%) at 5:22p EDT

Tilray had just $20-M in revenue last year and short seller Citron Research called the stock’s surge “beyond comprehension” — they would rank among private equity’s wealthiest players. They are already richer, at least on paper, than such industry luminaries as Ares Management LP’s Tony Ressler and Blackstone Group LP’s Jon Gray, according to the Billionaires Index.

Privateer declined to comment on the founders’ personal finances

Citron Research earlier said it remains short on Tilray and called the move “beyond comprehension,” blaming the volatility on its low float of 10.3-M shares Vs the 76.5-M shares outstanding.

CEO Kennedy said the company is exploring consumer products that include marijuana ingredients and would rather build his business than get acquired by a large consumer company.

“I don’t want to get bought by AB-InBev or Diageo, I want to be that company,” he said Tuesday

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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