Aurora Cannabis Inc.
said late Wednesday that it was acquiring U.S. company Reliva LLC for roughly $40 million in an all-stock deal. Shares of Aurora surged after hours, gaining about 16% after the news became public. Reliva sells products using cannabidiol, or CBD, a non-intoxicating form of cannabis. If Reliva hits financial targets, Aurora could pay up to $45 million in additional stock beyond the $40 million initial payment. Aurora said Reliva is profitable. “We have taken the time necessary to carefully assess the Company’s entry into the U.S. market and we firmly believe that the combination with Reliva will create significant long-term value as Reliva provides us options to grow in hemp-derived CBD internationally,” Aurora Chief Executive Michael Singer said in a statement. Aurora said it predicts the deal will close in June. The company’s stock has been on a roller-coaster ride in the past year, falling to the point of being threatened with delisting before executing a reverse stock split and seeing the newly bundled shares spike after an earnings report that showed better pot sales than expected.