Aurora Cannabis Stock Price Soars 16%, Billionaire Nelson Peltz Joins Marijuana Company

  • Aurora Cannabis Stock Price Soars 16%, Billionaire Nelson Peltz Joins Marijuana Company

Aurora Cannabis Stock Price Soars 16%, Billionaire Nelson Peltz Joins Marijuana Company

Trian has also pushed for changes at major USA corporations, including Procter & Gamble Co., where he sits on the board; PepsiCo Inc.; Mondelez International Inc., and Family Dollar Stores Inc. (ACI) sent the latter's stock surging almost 16 percent Wednesday.

In exchange, the Edmonton, Alberta-based company will grant Peltz options to purchase nearly 20 million shares in the company at 10.34 Canadian dollars ($7.73) apiece - making him the second-largest shareholder, if exercised.

Nelson Peltz, seen here at the WSJD Live conference in Laguna Beach, Calif. on October 25, 2016, is joining Aurora Cannabis as a strategic adviser.

Including Wednesday's gains, Aurora's US -listed shares have surged more than 68 percent this year.

Aurora has reportedly been in talks with Coca-Cola to develop beverages that use CBD, a non-psychotropic chemical found in marijuana that can be used to treat anxiety, depression, and cramps.

The shares were up roughly 10 per cent in late morning trading, rising to $11.67 - up from Tuesday's close of $10.64.

Peltz's experience jibes with ACI's needs.

"I believe Aurora has a solid execution track record, is strongly differentiated from its peers, has achieved integration throughout the value chain and is poised to go to the next level across a range of industry verticals", Peltz said in a statement. "I also believe that Canadian licensed producers, and Aurora in particular, are well positioned to lead in the development of the global cannabis industry as regulations evolve, with a strong, globally replicable operating model".

The Canadian firm is a publicly traded company that makes and sells whole-flower cannabis, milled cannabis, cannabis oils and vaporizers.

The activist investor, who heads hedge fund Trian Fund Management, has invested in several global consumer conglomerates, including Mondelez International and Procter & Gamble Co.

Financier Nelson Peltz speaks at the Simon Wiesenthal Center Honors Award.

The company announced Wednesday it appointed Nelson Peltz, CEO and founding partner of Trian Fund Management, as a strategic adviser. Pucher previously headed the investment bank's Canadian diversified banking division, which included Goldman's coverage of the Canadian cannabis industry.