The Coca-Cola Company is in “serious talks” with Aurora Cannabis to develop a CBD-infused beverage, according to a report from BNN Bloomberg Television. The news sent shares of Canadian marijuana producer Aurora Cannabis up as much as 23 percent to $8 in early trading on Monday. The stock had settled to a gain of about 14 percent by noon Eastern time.
Coca-Cola, the world’s largest beverage maker, and Aurora Cannabis are “pretty advanced down the path” of coming to an agreement, according to an unnamed source familiar with the negotiations between the two companies.
“It’s going to be more of the ‘recovery drink’ category,” the source added.
The source also said that talks between the two companies are ongoing but are not certain to succeed. Even if they are successful, any deal reached may not be made public, according to the source.
Another source told BNN Bloomberg that Coca-Cola also held preliminary talks with Aphria, another Canadian cannabis producer, but that the negotiations had not advanced.
Companies Decline to Comment on Deal
Coca-Cola spokesperson Kent Landers declined to comment on Aurora Cannabis directly. But he did say in an email to BNN Bloomberg that “along with many others in the beverage industry,