Marijuana Producer Aurora Cannabis Gets Nelson Peltz as a Strategic Advisor


 
 
02:03 03/16/2019

Shares of Canadian based marijuana company Aurora Cannabis ACB  were moving higher this week after Wall Street learned that Trian Partners founder Nelson Peltz, who is also an activist investor, has been appointed to the company as a strategic advisor.

Shares of the stock closed up almost 14% on Wednesday, marking the best day of trading since last September.

Aurora Cannabis has granted Peltz options to purchase nearly 20 million Aurora shares and if he exercises the options, he would become the company’s second-largest shareholder.

Peltz will “work collaboratively and strategically to explore potential partnerships that would be the optimal strategic fit for successful entry into each of Aurora’s contemplated market segments,” according to a statement from Aurora.

“I believe Aurora has a solid execution track record, is strongly differentiated from its peers, has achieved integration throughout the value chain and is poised to go to the next level across a range of industry verticals,” Peltz commented.

“I also believe that Canadian licensed producers, and Aurora in particular, are well positioned to lead in the development of the international cannabis industry as regulations evolve, with a strong, globally replicable operating model,' Peltz added.

Peltz is the Chief Executive Officer and a Founding Partner of Trian Fund Management, L.P., a multi-billion dollar investment management firm. He also currently serves as the non-executive Chairman of The Wendy's Company and as a director of The Procter & Gamble Company, Sysco Corporation, and The Madison Square Garden Company. 

According to Aurora, the company is 'one of the world's largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution.'

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