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Aurora Cannabis (NASDAQ:ACB) stock is climbing higher on Thursday after completing its acquisition of MedReleaf Australia.
Aurora Cannabis used a wholly owned subsidiary to acquire the 90% stake in MedReleaf Australia that it didn’t already own. The deal is worth 50 million AUD ($32.4 million) with Aurora Cannabis paying 9.45 million AUD in cash and the remaining in ACB stock.
The acquisition of MedReleaf Australia gives Aurora Cannabis a firm footing in the medical cannabis market in Australia. This market is valued at 400 million AUD and is one of the largest medical marijuana markets outside of Canada.
Aurora Cannabis CEO Miguel Martin said the following about the deal:
“The acquisition of MedReleaf Australia represents a strategic milestone in Aurora’s global cannabis leadership, demonstrating our commitment to investing in markets that offer opportunities for sustainable and profitable growth […] We are excited to solidify our position in this rapidly growing market and the opportunity this transaction presents to us in accelerating our plans to deliver positive free cash flow in calendar 2024.”
Earnings Boost ACB Stock
Alongside the acquisition news comes the company’s earnings report for its fiscal third quarter. It posted revenue of $64.4 million during the quarter. This comes in above Wall Street’s estimate of $47.03 million. It’s also an improvement over the $61.1 million reported in the same period of the year prior.
ACB stock is up 1.5% as of Thursday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.