When Aurora Cannabis (ACB) filed its preliminary shelf prospectus on April 2, it stated that the company could raise up to $750 million over a 25-month period. The company stated that being listed on the NYSE has given it access to institutional clients in the United States. The company is also looking to use the capital raised through the filing to invest in opportunities identified by Nelson Peltz. Aurora Cannabis stated that “this filing is a natural evolution for our company as we rapidly mature into a global and profitable organization.”
Peltz has an established track record of acquiring companies through Trian Fund Management—his investment management firm. He has been associated with several big names in the industry. Currently, Peltz serves as the director at Procter & Gamble, The Madison Square Garden Company, and Sysco. In the past, Peltz owned Snapple Beverage Group, which he sold to Cadbury Schweppes.
Since Peltz has experience in the consumer market space, Aurora Cannabis is probably looking to make a deeper foray into the consumer space. The company will likely advance its recreational cannabis segment. Canopy Growth (WEED), Tilray (TLRY), and CannTrust (CTST) are also actively looking at the consumer cannabis market (HMMJ) in the United States and Canada.