Aurora Cannabis (OTCQX:ACBFF) has completed the acquisition of CanniMed Therapeutics (CMMDF). CanniMed Therapeutics stock also delisted from Toronto stock exchange yesterday. Aurora Cannabis has purchased CanniMed against 3.4 million Aurora shares and $1.7 million in cash.
The largest acquisition in the history of cannabis industry sets the footholds for Aurora Cannabis' potential growth in medical marijuana market.
Aurora Cannabis CEO said, "CanniMed, which will operate as a wholly-owned subsidiary of Aurora, will be spearheading a number of initiatives such as scientific research, education, and product development. The capabilities and reputation of the CanniMed team in the medical market are very strong, which we will leverage to further grow our penetration of this rapidly growing segment of the international cannabis market."
The market pundits are praising Aurora’s strategy of expanding their product portfolio and market share through acquisitions. They expect the company to post sharp revenue and earnings growth in the days to come, supported by acquisitions and improving market fundamentals for cannabis companies.
Analysts are expecting high double-digit revenue growth in cannabis industry over the next five years; the prospects for complete legalization of recreational marijuana from U.S. and Canadian governments will further expand cannabis industry growth potential.
Canaccord Genuity has also upgraded Aurora Cannabis stock rating to a “speculative buy” from a “hold.”
Analysts have the consensus mean price target of Canadian $10.80 for Aurora Cannabis stock, higher from previous month price target of 8.75 Canadian dollars. Its median price target stands at 10.80 Canadian dollars. Its stock currently trades around $6, down from the 52-week high of $12 a share.
Aurora Cannabis Inc, together with its subsidiaries, produces and distributes medical marijuana products in Canada. With extensive footprints in German and the European Union markets, it is among the leading pharmaceutical wholesaler and narcotics dealer of medical marijuana.
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