Aurora Cannabis Inc. led a rally in cannabis holdings on Wednesday after the company said it employed security fund manager Nelson Peltz as an advisor to close new partnership agreements and expand globally.
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increased 12.5% in early trade. Peltz, the founder of Trian Fund Management L.P., is a well-known activist investor who has run campaigns to create and manage a variety of companies, including Procter & Gamble Co.
PG, + 0.89% the former DuPont and Dow Chemical, recently merged as DowDuPont Inc.
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and General Electric Co.
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He is the head of the fast food chain Wendy & # 39; s Co.
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and currently sits on the boards of P & G, mat service giant Sysco Corp.
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and The Madison Square Garden Co.
Analyst Owen Bennett said the news strengthens its perception of Aurora and is positioned to become a global leader in the sector.
"Some investor guide to Aurora's investment case is that they have spent a large amount on many assets over the value chain, with perhaps little thought that suits best," wrote Bennett in a note to clients. "Peltz should support to ensure that assets are kept that give the most value. Given his past, we would also suggest that his engagement should support to maximize the route to profitability."
Jefferies has a purchase rating on the Aurora shares and a price of $ 12, equivalent to 13% above the final price of the priors season. .
Peltz will have options to buy 19.9 million shares in the company at C $ 10.34 ($ 7.74). The options will signify over a four-year period on a quarterly basis, and earnings may accelerate if the company meets certain goals, including the execution of specific defined transactions, and the share price is at least NOK 31.02 and NOK 41.36 for a specified number of trading days.
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