An activist investor has gotten his hands on Aurora Cannabis Inc (NYSE: ACB).
The company announced Wednesday it appointed Nelson Peltz, CEO and founding partner of Trian Fund Management, as a strategic adviser.
"Nelson is a globally recognized business visionary with a strong track record of constructive engagement to generate accelerated, profitable growth and shareholder value across many industry verticals that are of great interest to us," Aurora CEO Terry Booth said in a press release. "Like us, Nelson also takes a long-term view of value creation to benefit all stakeholders.â€
Peltz will provide his services through 280 Park ACI Holdings. In exchange, Aurora has granted him options to buy nearly 20 million common shares at CAD$10.34. The shares will be vested over a four-year period.
The Cannabis Capital Conference is coming back to Toronto! Click here to learn how you can join Tim Seymour, Jon Najarian and many others.
Why It’s Important
Peltz boasts a solid record influencing large, diverse corporations, where he’s led turnarounds or buyouts. He formerly served as a director on Mondelez International Inc(NASDAQ: MDLZ), Heinz Company, Legg Mason Inc (NYSE: LM) and Ingersoll-Rand PLC (NYSE: IR).
Currently, Peltz sits as the non-executive chairman of Procter & Gamble Co (NYSE: PG), Wendys Co (NASDAQ: WEN), SYSCO Corporation (NYSE: SYY), and Madison Square Garden Co (NYSE: MSG).
The billionaire investor will now advise Aurora on its global expansion and drive exploration of prospective partnerships to facilitate Aurora’s entry into targeted market segments.
"I believe Aurora has a solid execution track record, is strongly differentiated from its peers, has achieved integration throughout the value chain and is poised to go to the next level across a range of industry verticals,†Peltz said in a statement. “I also believe that Canadian licensed producers, and Aurora in particular, are well positioned to lead in the development of the international cannabis industry as regulations evolve, with a strong, globally replicable operating model.â€
Aurora's stock traded up more than 10 percent in the pre-market session to $8.79 per share.
Related Links:
Trian - A Major Wendy's Stakeholder - Now Eyes Papa John's
2 Sell-Side Reactions To The Nelson Peltz-Procter & Gamble Proxy Play
Photo credit: Wall Street Journal, YouTube
See more from Benzinga
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.