RE:RE:The deal of the centuryA joint venture would most likely be the path Aurora would want to follow. The answer to your question is probably exactly what is being hammered out behind closed doors.
Maybe they want more than any cannabis company is willing to give up. Big, Global companies can be pretty pushy.
After all, they apparently approached Aphria a few months ago and nothing came of it.
I wonder why? That's what makes me think Coke wants too much.
What is an equity stake in a company?
The percentage of a business owned by the holder of some number of shares of stock in that company. Shareholders of a significant equity stake in a company may exercise some level of control, influence, or participation in the activities of the company.
This may be what Coke wants, and probably the last thing Aurora needs. Would it not further dilute our share price?
What is a Joint Venture?
A joint venture agreement is an arrangement where two companies develop a new entity to their mutual benefit. It normally involves a sharing of resources, which could include capital, personnel, physical equipment, facilities or intellectual property such as patents.
This makes way more sense to me....
Sharing of resources and equipment.
To me, this is the key. Investors have been all over Aurora because of all their acqusitions. Yet Aurora has built up their ability to grow enormous amounts of hemp and all their personnel, equipment, and facilities are in place.
Hemp, unlike marijuana, contains a negligible amount of THC, the compound that gets you high.
This is another key for Aurora
There is a big difference between a marijuana plant and hemp. You get your THC (that makes you high) from the Marijuana plant. The CBD comes from the hemp plant. I've said it before....It's the CBD that is going to rock this world.
It's use as a medicine is going to be amazing. I've tried CBD and I can say first hand that it is fantastic. Hell, I'm a cheapskate and I have no problem spending $120 for a small bottle of CBD oil. Once people who have pain related to cancer, migraines, Cron's, Fibromyalgia, and dozens of other diseases discover what it can do for them there will be no more use for pain pills with God awful side affects.
One of Aurora's acquisitions was Hempco.
The market for CBDs in the form of capsules, oils, and topicals is expected to show significant growth, and Aurora considers the proposed transaction with Hempco to be a strategic initiative to enable market share dominance. "significant growth" is the understatement of all time.
So, there you go. Another acqusition that Aurora took heat for and yet this might be what swings the Coke vote in our favor. You need the hemp to make the CBD. You will need the CBD to put in cokes new line of CBD infused heath drinks.
People are getting away from sucking smoke into their lungs. That includes Marijuana smoke. Edibles might do well, but really, it's the CBD oil that will be the money maker.
A joint venture with coke would be amazing and this would eventually compute to a $100+ Aurora stock price. How could it not?? How could you even remain a sub $20 stock when you are helping create a new, healthy product that will be sold in 200 countries?
Coke and Aurora>>>>>>It's the real thing.