Today (OTCMKTS:ACBFF) Aurora Cannabis had gains of more than 7% on news that they will be making investments in Hempco HEMP.V
Both of these companies are leading the way in the cannabis industry. With growing interest from consumers and manufactures alike, hemp products are trending and investors are begging to be part of this movement.
VANCOUVER and BURNABY, BC , June 8, 2017 /CNW/ – Aurora Cannabis Inc. (the “Company” or “Aurora”) (ACB.V) (ACBFF) ( Frankfurt : 21P; WKN: A1C4WM) and Hempco Food and Fiber Inc. (“Hempco”) (HEMP.V) are pleased to announce that Aurora will be making a strategic investment in Hempco for an ownership stake of up to 19.9% on a fully diluted basis, subject to Regulatory and Board approvals, as well as satisfactory completion of due diligence. Additionally, subject to customary conditions, Aurora will obtain an option to acquire shares from the majority owners of Hempco that, upon exercise of the option, will bring Aurora’s total ownership interest in Hempco to 50.1% on a fully diluted basis.
This news brought hungry investors into both ACBFF and HEMP.V with gains in ACBFF of more than 7% and HEMP.V showing double digit gains around 14%.
Hempco is one of the world’s largest industrial producers of hemp and hemp products, and currently offers three primary product lines: (1) bulk and packaged food products (e.g. hemp protein powder, hemp seeds or hearts, hemp oil etc.); (2) hemp fibre; and (3) nutraceuticals. Hempco’s line of packaged foods are sold under the brand “Planet Hemp” and are distributed globally in seven countries.
The target market for these products includes, but is not limited to, health conscious consumers, including vegetarians seeking to supplement protein and reduce or eliminate animal product intake, as well as an increasing number of consumers focused on managing and preventing a variety of health issues through a healthy diet, known as “LOHAS”, Lifestyles of Health and Sustainability, and “millenials” looking for clean and “green” products.
In August of 2016 ACBFF was sitting around $0.35 a share but just a few months later it hit a high around $2.70 in the middle of November. Over the next 6 months ACBFF bounced between $1.70 and $2.65 with average volume over the last 30 days around 490,000 shares. Just in the last week some heavy than normal selling brought the PPC to a low of $1.50
We will continue to watch ACBFF over the short term and keep you updated on any changes that deserve your attention.