At the end of last week, Aurora Cannabis (TSX:ACB) (NYSE:ACB) disclosed that it has increased its credit facility. Aurora stock dropped nearly 4% after the news hit the market. This morning, the Edmonton-based company is back making headlines—and ACB stock is back in the red.
Here's what's happening.
Aurora Stock Down on News of Hempco Food and Fiber Acquisition
It's a big deal for Aurora Cannabis and the cannabis sector as a whole. On Monday, August 19, Aurora Cannabis announced the completion of its acquisition of Hempco Food and Fiber, a trusted provider of hemp-based foods and hemp fiber. As of now, Hempco is a wholly-owned subsidiary of the leading Canadian cannabis company.
Of course, acquiring companies indicates the level of wealth and success Aurora Cannabis has; but the deal is also going to provide the company with major benefits. For instance, Hempco will provide the company with access to low-cost raw hemp material that can be used for the extraction of CBD. During a time when the world is clueing into the benefits of cannabidiol, ACB now has even more of a foot in the door.
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"Aurora is defining the future of cannabis and hemp, globally," Terry Booth said, CEO of Aurora Cannabis. "Through the addition of Hempco, we have assembled a world-class portfolio of high-quality hemp assets that together form the basis of a strong new operating division that will develop CBD-from-hemp around the world."
And yet, Aurora stock is trading in the red on both the New York Stock Exchange and the TSX this morning. It's still early in the trading day, so things might turn around. For now, however, Aurora stock is down.
According to Yahoo Finance, as of 10:45 AM EDT on the NYSE, Aurora stock is trading at $5.95; this puts the cannabis stock down 0.75%. Meanwhile, on the TSX, as of 10:31 AM EDT, ACB stock is down 1.26%, trading at $7.81.
Takeaway
What do you think about Aurora Cannabis completing the Hempco Food and Fiber acquisition? Do you think ACB stock will manage to turn around later in the trading day? Let us know your thoughts in the comments below!
Featured image: PixaBay
