** 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)
Our Standards: The Thomson Reuters Trust Principles.