Aurora Cannabis Inc (TSE:ACB), TGOD Forge Closer Ties at the BOD Level

Aurora Cannabis Inc (TSE:ACB) (OTCQB:ACBFF) (FRA:21P) and Green Organic Dutchman Holdings Ltd (TSE:TGOD) continue to forge stronger ties. The two companies announced news which join both companies closer to the hip.

At eight o’clock this morning, it was disseminated that Aurora Cannabis Chief Corporate Officer Cam Battley was added to TGOD’s Board of Directors. Cam is one of the industry’s more recognized executives, responsible for establishing and managing relationships with various stakeholders operating with Aurora. According to Bloomberg, Cam would be the tenth regular and insider addition to TGOD’s Board of Directors.

This move comes on the heels of recent developments cementing relationships even further.

On May 2, Aurora Cannabis elected to participate in the IPO of TGOD above and beyond the 33 million subscription receipts it already owned. On IPO day, Aurora purchased 17.5% of the issue, or 6.3 million units, priced at $3.65 per unit, for a total investment of $23.1 million. This investment upped their ownership interest to 17.6% on an undiluted basis, with further optionability to increase ownership to over 50% in relation to TGOD achieving certain operational and financial milestones.

With the closing of the over-allotment option one week later, Aurora’s total investment in TGOD is stands at $78,145,562. That’s a ↑42.07% increase over their initial investment ($55 million) made in January 2018.

Cam Battley talks about The Green Organic Dutchman facility in Valleyfield, Quebec, recent earnings, corporate happenings and more

The move could also be a lucrative one for Mr. Battley over time.

According to public filings available on SEDAR, The Green Organic Dutchman’s executive management team and Board of Directors control approximately 14% of outstanding shares. With 187,101,657 currently outstanding—excluding options and/or warrants—and a market price north of $3.60/share, the math becomes quite evident. No compensation details were disclosed.

The Green Organic Dutchman will certainly hope Mr. Battley can bring the same magic he brought to Aurora Cannabis shareholders back in 2016. Upon coming aboard as Executive Vice president in November 2016, ACB shares have skyrocketed from the $2.00/share range to a high of $15.20 in January 2018—a 760% trough-to-peak return. Although widespread sector weakness has dampened aggregate returns so far in 2018, Aurora investors have still made 400% returns since Cam joined ranks. Under his leadership, the company now ranks as the second largest pure-play cannabis company in the world.

While it remains to be seen how active a role Mr. Battley will play, one thing is resoundingly clear: The Green Organic Dutchman is viewed as a crown jewel in Aurora’s deep cannabis portfolio. Not only does the deep financial commitment exists, but so too the expertise and guidance of Aurora’s most prominent executives.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.