Canadian cannabis company Aurora Cannabis Inc. has sold off its entire stake in Australian medical marijuana company Cann Group Ltd., noting that the decision was consistent with its current strategic priorities.
Aurora Cannabis said in a filing with the Australian Securities Exchange that it has disposed of its entire position in Cann Group, effective October 9, 2020.
Cann Group is the first company in Australia ever to be licensed for research and cultivation of medical cannabis for human use.
Separately, Cann Group said it has been advised that Aurora Cannabis has exited its ownership position in Cann Group.
Aurora Cannabis sold its 11.84 percent shareholding in Cann Group via off-market trades to a small number of undisclosed buyers, after the market closed on Friday, 9 October 2020.
According to Cann Group, Aurora Cannabis indicated that its decision to exit its stake in Cann Group was consistent with its current strategic priorities.
Cann Group added that Aurora Cannabis’ decision had no impact on Cann Group’s business plans that include developing a growing and diversified supply base with B2B customers in Australia and overseas as well as proceeding with plans to expand its manufacturing capacity.
In March 2017, Aurora Cannabis announced its participation in the initial public offering or IPO of Cann Group on the Australian Stock Exchange as a cornerstone investor, securing a 19.9 percent stake in Cann Group.
At that time, Aurora Cannabis noted that there was potential for Australia to become a leading market for medical cannabis research, innovation, investment and commercialization, due to the country’s regulatory framework, entrepreneurial business environment, and the high quality of local talent.
Aurora Cannabis later said in December 2017 that it increased its ownership stake in Cann Group to 22.9 percent from 19.9 percent, noting that funding the acceleration of Cann Group’s expansion plans made strong strategic sense.
Last month, Aurora Cannabis reported a wider loss for fiscal year 2020. The company’ full-year net loss widened to C$3.31 billion from restated loss of C$300.60 million in the prior year, while net revenue grew to C$278.91 million from a restated C$245.54 million.
Source: Read Full Article