Stock Alert: Aurora Cannabis Climbs 27% As It Enters US Cannabidiol Market

(RTTNews) - Shares of Aurora Cannabis Inc. (ACB) are surging more than 27% Thursday morning after the company announced its decision to acquire U.S. based hemp-derived CBD retailer, Reliva. The acquisition will enable the company to enter the U.S. cannabidiol (CBD) market.

Wednesday the marijuana producer said, it has entered an agreement to buy Reliva. The transaction is expected to be immediately accretive to Aurora on an Adjusted EBITDA basis.

As per the deal, members of Reliva will receive Aurora common shares worth approximately $40 million. The transaction also includes a potential earn-out of up to $45 million payable in Aurora shares, cash or a combination of the two.

The transaction is expected to close in June 2020.

Aurora stock is currently trading at $16.16. It has traded in the range of $5.30- $105.24 in the last one year.