Shares of Canadian pot grower Aurora Cannabis (NYSE:ACB) jumped more than 11% on Friday before giving back most of those gains. The stock was up 2.3% as of 2:30 p.m. EST.
Today's initial jump came after the company announced a new exclusive distribution agreement yesterday. The agreement with Canada's Great North Distributors is meant to "significantly bolster" Aurora's market position in Canada, the company said.
Aurora CEO Miguel Martin said in a statement, "Great North brings deep experience across the spectrum of sales capabilities that will further differentiate Aurora as a leader in the growing cannabis space."
Great North will begin running Aurora's sales execution across Canada on Jan. 25, 2021. The cannabis company has been working on a business turnaround over the past year. It has focused on consolidating its operations, controlling spending, and raising money to stem losses and begin a path to profitability.
Great North will "immediately bring value in sales execution to Aurora," according to the distributor's president Doug Wieland. Aurora investors shouldn't expect a transformation in the business simply from this agreement. But it may be a needed step in the right direction, potentially explaining the stock's gains today.