uploads/2018/05/brown-20804_1280.jpg

Aurora Cannabis Stock Rises 5.8% on Investment in CTT

By

Updated

Aurora and CTT

On May 22, Aurora Cannabis (ACB) (ACBFF) added yet another name to its long list of partnerships ahead of legalized cannabis in Canada. The company acquired a 9.1% ownership interest in CTT Pharmaceutical Holdings through a private placement. This deal further has a provision for Aurora Cannabis to increase its stake to 42.5% in CTT.

Article continues below advertisement

The products

CTT Pharmaceutical Holdings is based in Ontario and has developed cannabis-based dose-specific formulation that can be taken orally in the form of a thin wafer film. According to the company press release, CTT’s clinical research indicated higher efficiency in this method compared to “edible form factors.” With this acquisition, Aurora Cannabis intends to offer yet another form of cannabis products to medical users.

Investors react

Following this news, Aurora Cannabis stock rose almost 5.8% to 8.4 Canadian dollars, indicating that investors were broadly positive about the acquisition. However, YTD (year-to-date), the stock continued to deliver losses of 29%.

The company has recently entered several merger and partnership deals. The most recent big announcement was the acquisition of MedReleaf (MEDFF), which is one of the biggest medical cannabis players in the sector.

On the same day, Canopy Growth (WEED) also gained as much as 9.4% to 39.4 Canadian dollars, while the Horizons Marijuana Life Sciences Index ETF (HMMJ), which is a representative benchmark portfolio for a diversified cannabis sector holding, rose about 2.2% during the day.

Advertisement

More From Market Realist