Aurora Cannabis (TSX: ACB) (NYSE: ACB) has seen Nelson Peltz resign as a strategic advisor to the firm. The announcement was tucked neatly at the end of a news release issued this morning identifying the date of the firms annual general meeting, which is to occur virtually this morning. Peltz was to provide services to the company focusing on its US strategic initiatives.
Originally, Nelson Peltz was welcomed with much fan fare when Aurora announce his involvement with the firm in March 2019. At the time, it was stated that Peltz would, “work collaboratively and strategically to explore potential partnerships that would be the optimal strategic fit for successful entry into each of Aurora’s contemplated market segments.” Further to this, his strategy decisions were expected to be used in connection with the global expansion strategy for Aurora.
Peltz is highly experienced when it comes to management. Presently, he managed the Trian Fund, which is a multi-billion dollar investment fund. Prior to this, he has served as a director to a number of high profile firms, including H. J. Heinz Company, Ingersoll-Rand plc, Mondelez International, while still serving as a director for Proctor and Gamble, as well as Sysco Corporation among others.
The strategy consultant did not come cheap however, given that the company issued 19,961,754 common share purchase options, with an exercise price of $10.34. Certain acceleration triggers were in place in connection with these options, however they never came close to being exercised. On a post consolidation basis, the options have an exercise price of $124.08 – effectively making the options worthless.
It’s not presently clear whether Peltz, whom operated through a holding company named 280 Park ACI Holdings LLC, ever provided much value. This seems fair, given that his options were only ever in the money for a short period of time, with the company seeing an endless decline in its share price since the issuance. Rather, Peltz provided an optimistic potential opportunity for shareholders as the company continue slid down the charts.
Peltz resigned effective September 25, to “pursue other commitments.”
The company expects to hold its annual shareholders meeting on November 12, 2020, at 10:00 AM Mountain Time.
Aurora Cannabis last traded at $6.78 on the TSX.
Information for this briefing was found via Sedar and Aurora Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.