Aurora Cannabis (TSX:ACB) (NYSE:ACB) has gone from strength to strength in the last five days. At the time of writing, ACB stock is up nearly 5% and selling for $10.01 CAD. On the week, Aurora has gained approximately 17%.
The company has more news to shout about today; Aurora will acquire Vancouver’s ICC Labs Inc. (TSXV:ICC). The agreement was first drafted on September 8th and in a meeting held yesterday, ICC shareholders unanimously voted in favor of it.
Can we expect ACB stock to soar further in the coming days?
Will the Acquisition Affect ACB Stock?
Under the terms, Aurora will now acquire all of the shares of ICC. One of the conditions required to complete the arrangement was approval from at least two-thirds of ICC shareholders. It easily got this; a huge 98.74% of shareholders voted in favor of the acquisition.
The deal is still waiting on other closing conditions, including a court order, but assuming closure happens without a hitch, Aurora should have completely acquired ICC by Q4 2018.
Why ICC Labs?
Is ICC’s position in Uruguay the main draw for Aurora here? The company is a fully-licensed producer and distributor of medical cannabinoid extracts, recreational cannabis, and hemp products in Uruguay. It also is a fully-licensed medical cannabis producer in Colombia.
Such a presence in Uruguay will help Aurora to expand into South America and will also provide ICC with a strong foundation for expansion within the continent.
Aurora Cannabis is one of Canada’s largest cannabis producers. Headquartered in Edmonton, Alberta, it produces medical cannabis products in Canada and internationally. With a market cap of $9.59 billion CAD, Aurora produces and sells dried cannabis and cannabis oil in 19 countries across five continents. Aurora currently holds collaborative agreements with PharmaChoice, Pharmasave, and Shoppers Drug Mart for the distribution and sale of medical cannabis products.
ACB stock has had a strong week. Will it continue?
Featured Image: Depositphotos/© j.dudzinski