Cannabis stocks continued to grow Wednesday as US markets surged into positive territory.
The Marijuana Index, which monitors leading North American cannabis stocks was up 0.9% to 291.59.
Aurora Cannabis Inc (NYSE:ACB) welcomed aboard billionaire Nelson Peltz as a strategic advisor, the company announced Wednesday. Peltz is well known as an activist investor and is CEO and a founding partner of the investment management firm Train Fund Management. The Edmonton-based company offered Peltz the chance to buy nearly 20 million shares of common stock for C$10.34, which would make him the company’s second-largest shareholder if he did so.
The share price jumped 10.6% to $8.80.
HEXO Corp (NYSEAMERICAN:HEXO) agreed to acquires Newstrike Brands Ltd (TSX:HIP) (OTC:NWKRF) in a C$263 all-stock deal, the company announced Wednesday. The deal gives the Gatineau, Quebec-based company the capacity to produce about 150,000 kg of cannabis annually as well as four campuses totally nearly 1.8 million sq. ft. The company expects $400 million in annual net revenue for fiscal 2020 following the acquisition.
Shares were up 3.8% to 5.79.
Redfund Capital (CSE:LOAN, OTC:PNNRF) is taking a 5.6% in cannabis tea company Mary’s Wellness Ltd, after revealing plans Wednesday to convert into shares the first tranche of a promissory note the two companies signed in October. The trance represents C$100,000 of a total C$1 million. Mary’s product line is 100% organic and features 18 varieties of on-the-go brews.
The stock was piping hot, up 16.3% to $0.25.
Tilray Inc (NASDAQ:TILRAY) tapped Andrew Pucher, a former Goldman Sachs managing director, to its team Wednesday as chief corporate development officer. Pucher served as head of Canadian diversified investment banking, which included the cannabis industry. He will lead the Nanaimo, British Columbia-based company’s team responsible for mergers and acquisitions as well as corporate investments.
Nevertheless, shares were down 0.6% to $71.72.
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