Shares of Canadian pot company Aurora Cannabis (ACB) - Get Report were rising more than 1% in trading Wednesday after the company announced the sale of its remaining stake in Green Organic Dutchman (TGODF) .
The Edmonton-based company sold 28.83 million shares, representing 10.5% of Green Organic Dutchman's issued and outstanding shares, for C$3 per share for aggregate gross proceeds of C$86.5 million ($64.9 million).
The sale represents a return rate of 50% from Aurora's initial investment. While Aurora no longer holds any shares of TGOD, it does hold warrants to purchase another 16.66 million shares.
"When we acquired Whistler Medical Marijuana Corporation - an iconic and premium organic cannabis producer - our interest in TGOD became less important to our core strategy. Our return on our TGOD investment is significant and will add non-dilutive capital and further enhance our strategy to remain a dominant force in the global cannabis industry" said CEO Terry Booth.
Aurora agreed to acquire Whistler for C$175 million ($131.4 million) in an all-stock deal in January. The company has two production facilities that combined have a capacity of over 5,000 kg per year.
Aurora shares were rising to $5.86 Wednesday. The stock has gained more than 8% year to date, but it has declined by nearly half from its March peak of above $10.20.