Aurora Cannabis Inc (TSX:ACB, NASDAQ:ACB) shares rose over 3% Tuesday morning after the company launched TASTY’S, a new brand targeted at the Canadian adult market, at the Hall of Flowers cannabis trade show in Toronto.
The company said TASTY’S is designed to deliver on “taste, potency, and price,” adding that it promises to deliver highly potent weed that tastes “ridiculously good.”
"We could not be more excited to bring a net new brand to the Canadian market, and especially a brand that packs the punch as TASTY'S does and meets the rapid growth of the pre-roll segment," Aurora senior vice president: Consumer Geoff Hoover commented in a statement.
"We leaned into valuable consumer insights and recent market performance to develop TASTY'S, a brand that promises the cannabis experience Canadians are seeking at a price they can feel good about. This is what great innovation looks like at Aurora."
Aurora said TASTY’s joins its portfolio of brands which include Greybeard, San Rafael '71 and Daily Special and stands out with a disruptive look and in-store marketing that is all about flavour and potency.
The company is launching the brand in two primary formats – vapes and infused pre-rolls — which will be available at cannabis retailers across Canada, starting in September.
Shift to Nasdaq Capital Market
In a separate statement, the company announced it received approval to transfer the listing of its common shares from the Nasdaq Global Select Market to the Nasdaq Capital Market, effective from the market open today, September 19.
It said the transfer is expected to allow it to seek an additional 180 days to regain compliance with Nasdaq listing rules around the minimum bid price requirement after its stock closed below US$1 per share for the 30 consecutive business days up to March 24, 2023.
It also agreed to repurchase an aggregate of approximately C$13 million ($9.6 million) principal amount of its convertible senior notes at a total cost, including accrued interest, of C$13 million, satisfied by the issuance of an aggregate of approximately 13.5 million shares. Following completion of these repurchases, Aurora said it will have approximately $39.6 million of Notes outstanding.
The repurchase is aimed at reducing debt and annual cash interest costs, reinforcing its commitment to achieving the target of positive free cash flow in calendar year 2024.
Aurora’s Nasdaq-listed shares were up 3.1% at $0.89 by midday, while its Toronto-listed stock was 3.5% higher at C$1.19.
Contact the author at stephen.gunnion@proactiveinvestors.com