Company News

BUZZ-Green Organic Dutchman: Slumps as Aurora sells shares at discount


** Shares of cannabis co down ~16% at C$2.95

** Aurora Cannabis sells entire stake in TGOD; sells ~28.8 mln shares or 10.5% of total outstanding shares of TGOD for C$3/shr, which was below co’s closing price of C$3.51 on Tuesday

** ACB no longer holds any shares in TGOD, but holds warrants to buy ~16.7 mln shares of the company

** TGOD says an investor rights agreement with ACB included a revenue sharing model which would have lowered TGOD’s average selling price and margins

** Jefferies analyst Ryan Tomkins called ACB’s move a “welcome cash boost for Aurora given a lack of financial backing vs larger peers”

** ACB shares, which initially rose as much as 2.2%, now down 1.3%

** Up to Tuesday’s close, TGOD stock had gained ~43% YTD, ACB’s Toronto-listed shares rose ~12% in the same period (Reporting by Debroop Roy in Bengaluru)