Last month, Canadian cannabis producer Aurora Cannabis (TSE:ACB) announced the closure of a deal to purchase rival producer CanniMed (TSE:CMED). It was a major shake-up for the marijuana industry, marking the largest ever deal in the business. Both Aurora and CanniMed stocks responded positively.
In a new development, Aurora has today announced that it has received regulatory approval to purchase the outstanding shares of CanniMed that it does not already own. This approval will now allow Aurora to move forward in its acquisition and begin work on its new business strategies with CanniMed.
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In a statement regarding the approval, Aurora CEO Terry Booth said: "We now look forward to connecting with our new colleagues, and enter the next phase of growth for both companies."According to Booth, the Aurora/CanniMed corporate group will have a strong international presence, catering to over 40,000 patients with the ability to produce 260,000 kg of product per year.
The final approval has been great news for shareholders on both ends. As of 1:29PM EST, CanniMed stocks have risen 5.36% in the last 24 hours to $35.39 CAD. This continues to plateau high following a fairly consistent rise since September 2017, and brings their market cap to $878.36M. Meanwhile, Aurora stocks are up 4.45% at a price of $10.33 CAD, though this is down -30.2% from January's peak. This puts their market cap at $5.08B CAD; a close second place behind Canopy Growth Corp (TSE:WEED)'s $5.42B in terms of market cap size.
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In addition to the acquisition approval, CanniMed's stocks surely are reacting well to the announcement that the company is to begin shipping their new CanniMed Topical Cream product as of today. The cream, which contains CanniMed's 'industry-leading medical cannabis oil', will deliver localized relief for pain, inflammation and skin conditions. In a statement, CanniMed added that the product is 'ideal for patients who do not wish to ingest or vaporize and prefer only localized treatment for their condition'.
Clearly, today is a brilliant time for Aurora and CanniMed shareholders. With both companies in the green from this time last year and potential growth on the horizon, the cannabis industry is increasingly becoming the one to watch.
Featured image: Weedistry.com
