Marijuana Watch: Aurora Marijuana makes its long-awaited push into the U.S. with Reliva CBD acquisition
Aurora shares rise almost 30%in the extended session.
Over a year after Aurora Marijuana Inc. executives started openly talking about making a push into the U.S. market, the company has made its move: the $40 million all-stock purchase of a cannabidiol maker called Reliva.
The carefully held Reliva LLC makes products that consist of cannabidiol, or CBD, which is a non-intoxicating aspect of the cannabis plant.
In the statement, Aurora stated that Reliva’s management team will continue to run the U.S. company, with its president taking the title of president, U.S.
Reliva’s site sells a range of CBD products including beverage mix, gummies, lip balm, family pet inctures and skin cream.
The U.S. just recently legislated hemp, but left controling CBD to the Fda, which has taken a decidedly careful approach At the moment, business are not permitted to include CBD to food, drinks or cosmetic items, and the FDA has actually been punishing companies that do so.
The FDA’s stance has actually shown tough for a few of Aurora’s rivals. Cronos Group Inc.
said in a current teleconference that it had pulled strategies to release a CBD brand name in the U.S., and mentioned regulatory unpredictability, among other things.
Aurora’s stock has actually been on a roller-coaster ride in the past year, falling to the point of being threatened with delisting before executing a reverse stock split and seeing the freshly bundled shares spike— to two times the marketplace value of rival OrganiGram Holdings Inc.’s.
— after a revenues report that revealed much better pot sales than expected.