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RetiringYoungon Jun 03, 2020 6:07pm
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Retail cannabis "investment"
Retail cannabis "investment"Aurora to take steep loss on Alcanna investment after divesting stake for $27.6M
Aurora is
divesting its stake in cannabis and liquor retailer Alcanna for $27.6 million in proceeds. Alcanna announced on Wednesday that the divestiture comes through a secondary bought-deal offering from Aurora, which is selling its 23-per-cent ownership stake in the company for $3 per share. An $138 million investment in 2018 began Aurora's partnership with Alcanna, which operates 31 cannabis stores in Alberta and Ontario. RBC Capital Markets analyst Douglas Miehm said in a report Wednesday that Aurora can redirect its proceeds from the sale to its "core internal growth initiatives," which could reduce the need to dilute its shares for future financing needs.