Aurora stock (NYSE:ACB)(TSE:ACB) is up 1.45% in premarket trading—shares are selling for $8.37 USD on the NYSE.
Its a positive sign considering the major cannabis producer was on the decline only yesterday. Shares were down 4.2% selling for $8.25 USD on NYSE and down 3.9% at $11.10 CAD on the TSE. This was a surprising reaction to the company's news that it entered a partnership with mixed martial arts federation, the Ultimate Fighting Championship.
Aurora Stock Climbing Again?
The companies signed a multi-year, multi-million dollar global research deal whereby they will aim to establish a link between CBD products and an athlete's wellness and recovery.
Terry Booth, CEO of Aurora, said the following in a statement:
"This global partnership places focus squarely on the health and well-being of UFC's talented and highly trained athletes [...] The Aurora-UFC research partnership creates a global platform to launch targeted educational and awareness campaigns, while creating numerous opportunities to accelerate our global CBD business."
The research is to be conducted at the UFC's Performance Institute in Las Vegas. More than 400 athletes have passed through here in the last two years as part of its studies.
UFC President Dana White said the following:
"Since the day we opened the Performance Institute, our primary goal was to offer UFC athletes the best possible training, nutrition, and recovery services [...] This partnership with Aurora is an extension of that goal, and we're looking forward to collaborating with Aurora to find new ways to improve the health and safety of athletes who compete in UFC."
A Prolific Move for Aurora Stock?
Some investors might understandably question Aurora's decision to attach its name to the UFC. After all, it is the most violent sport in the world—already banned in several jurisdictions and from multiple TV channels. Further, research suggests interest in the sport is declining rapidly. Might this impact negatively on Aurora's brand image? Possibly.
But on the flip side, UFC fighters are some of the most prolific athletes in the world. As such, Aurora's partnership with the global brand will see it take full advantage of their reach and influence.
Further, this venture is purely aimed at developing CBD products aimed at athletes. Pairing with a reputable body for this makes perfect sense whether you're a UFC fan or not.
But what do you think? Are you a fan of UFC? Importantly, are you a fan of Aurora stock?
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