Canadian cannabis giant enters U.S. market

Aurora Cannabis Buys Reliva, Enters US CBD Market

Aurora Cannabis Buys Reliva, Enters US CBD Market

Aurora Cannabis Inc. announced Wednesday it will acquire US hemp retailer Reliva LLC, a move that marks the Canadian pot giant's first official foray south of the border.

Cantor Fitzgerald reiterated its overweight rating on shares of Aurora Cannabis Inc. on Thursday and raised its stock price target to C$27 ($19) from C$22, after the company announced a long-awaited push into the US cannabis market, via the $40 million all-stock purchase of a cannabidiol maker called Reliva. "Reliva [also] has access to 20,000 retail locations and even more important strong relationships with the leading wholesalers and distributors in the U.S".

It also comes at a time when USA hemp farmers face a glut of supply in the market, which has impacted several CBD companies operating in the country.

"We were fortunate enough to be able to choose our long-term partner and believe this partnership provides a significant opportunity to accelerate sales growth for Reliva in the United States and internationally", Martin said.

In a statement, Aurora said that the deal marks the culmination of a "multi-month strategic evaluation" of the U.S. CBD industry.

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Aurora's first entry south of the border will cost $40 million in Reliva stock, plus up to $45 million over the next two years contingent upon Reliva hitting certain financial targets.

Focus on regulatory, testing and compliance protocols.

Deep relationships with critical trade partners that provide a USA national distribution footprint.

Financial discipline and track record of growth and profitability.

The company said the transaction will create a large and diversified pure-play worldwide cannabinoid company.

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