Aurora sold its remaining stake in TGOD, @ ~$3 Canadian. 28M shares, apprx. They went to a mix of banks, apparently: BMO, CIBC, RBC, others.
So .... on the one hand, that sucks. The deal went at about a 15% discount to the closing share price yesterday.
A mix of bull thoughts I've read online for TGOD:
- Aurora needed the money.
- TGOD has rid itself of that off take agreement, meaning they no longer sell 20% of their product at a discount.
- TGOD's % institutional investors rise significantly.
- No more fears of another open market sell-off by Aurora (apparently this was done with a much smaller block of shares in the past.
- Helps position TGOD for a partnership.
Bear thoughts:
- TGOD share price will drop on this news
- Aurora will push the $86M into Whistler, competing directly with TGOD on organic
- TGOD will come online during a supply glut and wont sell its cannabis
Everyone knows I'm long TGOD, just trying to share the information I've seen. This news doesn't seem to have any impact on the long-term outlook for the company: they just planted in the larger Hamilton space, NASDAQ uplist application was a few weeks ago, product in stores, hemp harvest coming, market heading into edibles.
Also, Aurora scheduled their call:
Quote:
EDMONTON, Sept. 3, 2019 /PRNewswire/ - Aurora Cannabis Inc. ("Aurora" or the "Company") (NYSE | TSX: ACB), today announced that it has scheduled its conference call to discuss the results for its fourth quarter and fiscal year ended June 30, 2019 on Thursday, September 12th, 2019 at 9:00 a.m. Eastern Time.
Last edited by ElSapo; 09-04-2019 at 04:21 AM.