Aurora Cannabis Inc (TSX:ACB) is in talks to potentially acquire MedReleaf Corp (TSX:LEAF), and it could be a great time for investors to buy one of the top pot stocks on the TSX. Year-to-date, Aurora’s share price is down more than 30% and a big acquisition would likely give the stock a boost.
We saw Aurora take front and center stage several months ago when it was in the midst of acquiring CanniMed Therapeutics Inc. Even before the acquisition was complete, Aurora saw a spike in its share price as investors grew excited at the prospect of the two pot companies joining forces. Although Aurora’s stock ultimately crashed back down to reality, on the way up investors earned a big return.
While rumours about a potential MedReleaf acquisition haven’t been dismissed, the stock price hasn’t gotten a boost in price either, and that’s a good thing. If the price were to jump significantly on news that Aurora was looking to buy MedReleaf, then even if the deal were to go through we’d see a lot of that bullishness already priced in the share price.
And because that hasn’t happened, it suggests if the deal does go through, Aurora’s stock could skyrocket back to highs not seen since in months.
From what we’ve already seen from Aurora, its pursuit is relentless. Even when it looked like the deal with CanniMed had turned hostile and the two were unlikely to come to a deal, Aurora found a way to make it work. It’s that tenacity and desire to continuing growing that makes me believe Aurora could find a way to make this deal a reality, and that makes it a terrific buy today.
