Aurora Cannabis (ACB) stock surged more than 10% in the pre-market trading as the company appointed activist investor Nelson Peltz as its strategic advisor. Mr. Peltz and Aurora will work collaboratively and strategically to explore potential partnerships that would strategically fit for successful entry into each of Aurora’s contemplated market segments. Mr. Peltz will also advise on the company’s global expansion strategy.

Nelson Peltz, the founding partner and CEO of multi-billion dollar investment management firm Trian Fund Management, also currently serves as the non-executive Chairman of The Wendy’s Company (WEN) and as a director of The Procter & Gamble Company (PG), Sysco Corporation (SYY), and The Madison Square Garden Company (MSG).

Aurora granted options to Peltz to purchase about 20 million common shares in the company at a price CAD$10.34 per share. These options will vest ratably over a four-year period on a quarterly basis, subject to accelerated vesting based on the occurrence of certain specified events.

“We look forward to working with Nelson to further extend our global cannabis industry leadership by aligning Aurora with each of the major market segments cannabis is set to impact,” said CEO Terry Booth.

Mr. Peltz added, “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.”

Last month, Aurora Cannabis shuffled its board of directors. The board appointed Michael Singer as Executive Chairman and Ronald Funk as Lead Independent Director. Margaret Atkins was hired as a new independent director and Chair of the Audit Committee.

Shares of Aurora, which inched up 0.13% on Tuesday, have rallied 60% so far in this year.

 

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