Aurora Cannabis Inc (TSX:ACB,OTCQX:ACBFF) has acquired an equity stake in CTT Pharmaceutical Holdings Inc (OTCMKTS:CTTH) as it looks into new delivery methods for cannabis.
The Canadian cannabis giant converted its US$1mln loan into a 9.14% equity ownership stake with the option to increase its stake to 42.5%.
Shares of Aurora jumped more than 3% to US$6.51 while shares of CTT surged more than 45% to US$1.02 in morning trading.
CTT develops a patented drug delivery method involving a thin wafer that dissolves when placed under the tongue.
“CTT’s innovative technology has the potential to produce great utility when applied to the cannabis industry, and we are encouraged with our joint progress towards establishing a long-term commercial arrangement with CTT to market this exciting technology,” said Aurora CEO Terry Booth in the company’s press release.
Aurora joins other cannabis companies that have been looking into delivering cannabis through fast-dissolving oral strips, including Aphria Inc (TSX:APH, OTCQB:APHQF) and Canopy Growth Corp (TSX:WEED, NYSE:CGC).