Aurora Cannabis Inc. (TSX: ACB) announced on May 15th that the company has controlling ownership of Hempco Food and Fiber Inc. (TSX: HEMP). The increase in ownership percentage came from a private option agreement that contained an aggregate of 10,754,942 Hempco shares. Aurora Cannabis’ total ownership percentage of Hempco is now at 52.7%, or 50.12% when fully-diluted.
Aurora finds value in Hempco due to its ability to source extremely low-cost materials for cannabidiol (CBD) production. This is access to materials is key for Aurora because of new legislation that would allow the use of the whole hemp plant in the production of CBD extractions.
The value of ACB decreased significantly throughout the day on the date of the announcement. ACB ended trading on the 15th at a 2.50% decrease in value. However, ACB has only decreased 0.13% in value over the last 5 days.