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      Aurora Cannabis Inc. (ACB) stock Bullish Amid Potential Federal Legalization Vote - Stocks Telegraph

      By Gule Rukhsar

      Published on

      March 25, 2022

      4:45 AM UTC

      Aurora Cannabis Inc. (ACB) stock Bullish Amid Potential Federal Legalization Vote - Stocks Telegraph

      On March 24, Aurora Cannabis Inc. (ACB) stock along with many other cannabis stocks traded in the green upon potential federal legalization vote. The latest news from the company itself was on March 23, regarding the acquisition of TerraFarma Inc.

      Source: Merriam-Webster

      ACB stock increased by 10.99% during the regular session followed by a gain of 18.56% in the after-hours. The stock had a value of $4.04 per share at the close of regular trading, while it reached up to $4.79 in the after-hours session. The volume of the day remained above the average with 21.55 million shares exchanging in the regular session and 3.48 million in the after hours.

      The cannabis products producer, Aurora Cannabis Inc. is based in Canada and was founded in 2006. Currently, the company’s 214.77 million outstanding shares trade at a market capitalization of $783.39 million. Standing on a year-to-date loss of 25.32%, ACB stock has added 16.09% in the past five days. Moreover, the stock subtracted a value of 56.42% in the past year.

      Potential Federal Legalization Vote

      On March 24, Yahoo Finance Live reported a potential federal legalization vote of marijuana by the US House of Representatives. According to the report, the US House of Representatives has officially included Marijuana Opportunity Reinvestment and Expungement (MORE) Act in the list of bills to be taken up on the House floor next week. The MORE Act was previously taken up by the House floor in December 2020. Thus, with the possibility of its federal legalization vote marijuana stocks including ACB were trending actively on Thursday.

      ACB’s TerraFarma Acquisition

      On March 22, the company announced its agreement for the acquisition of all the issued and outstanding shares of TerraFarma Inc. TerraFarma is the parent company of Thrive Cannabis. And, Thrive is a licensed producer of super-premium cannabis concentrates and craft dried flowers.

      The transaction consideration includes $38 million in cash and ACB common shares along with two earnout amounts (in ACB share or cash). Furthermore, the earnout consideration is based on the achievement of certain revenue targets by Thrive within two years.

      Additionally, the transaction is expected to close in the fourth quarter of 2022 as per ACB’s fiscal year. Also, the company expects to achieve positive adjusted EBITDA in H1 2023 due to the transaction.

      ACB’s Fiscal Q2 2022

      In fiscal Q2 2022 ended on December 31, 2021, ACB’s net revenue was $60.6 million with an adjusted EBITDA loss of $9.0 million.

      Also, the company ended the quarter with $383.8 million of cash along with $51.3 million in restricted cash.

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