- The billionaire Nelson Peltz is joining Aurora Cannabis as a strategic adviser.
- Investors complained that Aurora spent large amounts of money on numerous assets across the value chain, with perhaps little thought to which were best suited, according to Jefferies.
- “Peltz’s historical focus on profitability and efficient asset allocation” will support Aurora for the next stage of its growth, the firm says.
- Watch Aurora Cannabis trade live.
The marijuana producer Aurora Cannabis can solve its biggest problem now that the billionaire Nelson Peltz is joining the company, Jefferies says.
Some investors complained that the company spent large amounts of money on numerous assets across the value chain, with perhaps little thought to which were best suited, according to Bennett. And that’s where Peltz comes in.
Peltz, who has a net worth of $US1.6 billion and serves as the CEO of Trian Fund Management, will join Aurora as a strategic adviser, working with the company to “explore potential partnerships” and help with the its global expansion strategy, the company said on Wednesday.
In February, Aurora announced that its extraction-technology partner Radient Technologies received its Standard Processing Licence from Health Canada. And in March, Aurora acquired rival Cronos Group‘s entire 19% stake in Whistler Medical Marijuana.
But the company has failed to generate any profits. In its second-quarter earnings release out in February, Aurora said its gross margin fell from 70% to 54% on a quarterly basis due to higher weed-production costs. As a result, the company lost 238 million Canadian dollars ($US180 million) during the quarter.
Aurora was up 30% this year, including Wednesday’s gain.