Aurora Cannabis finally crosses the border with US$40M stock deal for Reliva
Aurora Cannabis is finally entering the U.S. After spending months studying the U.S. cannabis market, the company is now testing the waters with a purchase of U.S. CBD retailer Reliva for US$40M in Aurora stock. Aurora said the deal will be accretive the company's goal of becoming EBITDA-positive this year, but it also comes at a time when the U.S. Food and Drug Administration is deciding on whether CBD-infused products are safe for consumption. As well, analyst forecasts for the U.S. CBD market have declined as consumer interest in the once-popular product appears to be waning.
Green Growth Brands files for creditor protection a year after failed Aphria bid
Another cannabis company is filing for creditor protection, citing fiscal challenges brought on by the COVID-19 pandemic. Green Growth Brands Inc., better known for its $2.8 billion hostile bid for Aphria Inc. last year, filed for insolvency protection in an Ontario court on Wednesday. Green Growth also cited the "severe liquidity crisis" it is experiencing amid more than $100 million of maturing debt. The company was able to obtain US$7.2 million in debtor-in-possession financing and has roughly $718,000 in cash remaining on its balance sheet across its various business lines.
Harvest Health & Recreation maintains full year forecast of US$200M in revenue amid Q1 loss