Aurora Buys US CBD Distributor Reliva

The acquisition opens the doors to the largest cannabis market in the world.
Luca Marani
Written by Luca Marani, Cannabis Educator
Last Updated
Cannabis business

According to Market Watch, Aurora Cannabis is acquiring U.S.-based CBD business Reliva, a move that will guarantee to Aurora a business presence in America.
Shares of Aurora closed off nearly 13% ahead of the Wednesday afternoon announcement. The stock surged higher in after-hours trading.
However, over the past 12 months, Aurora has lost nearly 90% of its stock market value as of Wednesday’s close.

Reliva stakeholders will be compensated with $40 million in Aurora shares, which have doubled im value since the company reported a narrower quarter-over-quarter loss. The acquisition is expected to be completed in June.

 

The deal is part of Aurora’s near-term strategy to attain profitability in the next fiscal year and broader objective of steppimgo into the U.S. Cannabis market. Reliva has no debt, and it’s an operation that guarantees access to 20,000 retailers, among which also convenience stores, and strong relationships with the main U.S. wholesalers and distributor.

Since the legalizatiom of recreational use in 2018, marijuana sales in Canada have been lower than expected, but according to the Brightfield Group, CBD sales are foreseen to grow up to $24 billion in U.S. retail output by 2025. However, the road ahead of Aurora Cannabis’ latest business move may reveal itself to be a bit bumpy, due to the FDA’s position on edible CBD and the correlated price drop that theae type of products have seen in the last few years in the United States.

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Luca Marani
Luca Marani
Cannabis Educator
Luca Marani is an educator and content creator from Italy. He graduated in 2017 from Universitat Pompeu Fabra in Barcelona, Spain, with a Master of Arts in Political Philosophy, writing a dissertation on what was the state of the medical cannabis legislative framework in Spain at the time, and how it affected the rights of the Spanish medical cannabis users community to dignity and quality of life.

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