Shares of Aurora Cannabis (ACB) soared after the company said it appointed Nelson Peltz as a strategic advisor.

PELTZ NAMED STRATEGIC ADVISOR: Aurora Cannabis announced Wednesday that it has appointed activist investor Nelson Peltz as a strategic advisor. Peltz will "work collaboratively and strategically to explore potential partnerships that would be the optimal strategic fit for successful entry into each of Aurora's contemplated market segment," Aurora said in a statement. The company added that it has granted Peltz options to purchase 19.96M common Aurora shares at a price of C$10.34.  

Nelson Peltz is the chief executive officer and a founding partner of Trian Fund Management, a multi-billion dollar investment management firm. Peltz also currently serves as the non-executive Chairman of The Wendy's Company (WEN) and as a director of Procter & Gamble (PG), Sysco (SYY) and The Madison Square Garden Company (MSG). Peltz commented in the statement that "I believe Aurora has a solid execution track record, is strongly differentiated from its peers, has achieved integration throughout the value chain and is poised to go to the next level across a range of industry verticals." He added that "I also believe that Canadian licensed producers, and Aurora in particular, are well positioned to lead in the development of the international cannabis industry as regulations evolve, with a strong, globally replicable operating model. I look forward to working with [Aurora Cannabis CEO Terry Booth] and the extended Aurora team to evaluate its many operational and strategic opportunities, including potential engagement with mature players in consumer and other market segments."

Aurora Cannabis CEO Terry Booth commented that Peltz "is a globally recognized business visionary with a strong track record of constructive engagement to generate accelerated, profitable growth and shareholder value across many industry verticals that are of great interest to us," adding that "Like us, Nelson also takes a long-term view of value creation to benefit all stakeholders. We look forward to working with Nelson to further extend our global cannabis industry leadership by aligning Aurora with each of the major market segments cannabis is set to impact."

WHAT'S NOTABLE: Michael Singer, the executive chairman of Aurora Cannabis, told CNBC's "Squawk Box" in an interview that "We see a number of potential of growth areas, certainly consumer packaged goods." Specifically, Singer pointed out "The beverage industry, cosmetics, wellness; we see pharmaceuticals now starting to show interest in our space. There are a number of what we call market segments that we expect to operate in with one or many of these potential partners."

Singer added that Peltz "may have a reputation as the hedge fund activist, but I can tell you our diligence in the numerous face-to-face meetings convinced us that Nelson is someone who proactively works with companies to maximize value for stakeholders." Asked by Andrew Ross Sorkin whether Peltz's current or prior relationships with the U.S. consumer goods market played a role in the company's decisions to team up, Singer said "we don't see it that way."

Last month, Aurora Cannabis posted a wider-than-expected second quarter loss of (C$237.8M) but said it sold 6,999kg of cannabis over the three month period, helping revenues rise to C$54.2M.

ANALYST COMMENTARY: GMP Securities analyst Martin Landry upgraded Aurora Cannabis to Buy from Hold and raised his price target to $15 from $9.50. In a research note to investors, Landry said new high profile strategic advisor Peltz could be "instrumental" in facilitating partnership talks with large consumer packaged goods companies. He noted that in addition to the companies he is currently engaged with, Peltz has also been involved with consumer packaging companies like PepsiCo (PEP) and Mondelez (MDLZ).

Last week, Cowen analyst Vivien Azer initiated coverage of Aurora Cannabis with an Outperform rating and C$14 price target. Aurora is "uniquely positioned" to drive leadership in both market share and profitability with the Canadian adult use market in the "early innings," Azer said. Azer designated Aurora Cannabis as her Top Pick in cannabis, replacing Canopy Growth (CGC), on which she kept a Market Perform rating and a C$29 price target.

PRICE ACTION: In morning trading, shares of Aurora Cannabis are up over 12% to $8.94.

OTHERS TO WATCH: Other publicly-traded companies in the cannabis space include Aphria (APHA), Tilray (TLRY), Cronos Group (CRON), CV Sciences (CVSI), CannTrust Holdings (CNTTF), General Cannabis (CANN), Innovative Industrial Properties (IIPR), India Globalization Capital (IGC), ICC International Cannabis (KNHBF), Biome Grow (ORTFD), MediPharm Labs (MLCPF), Indiva (NDVAF), OrganiGram (OGRMF), KushCo (KSHB), MedMen Enterprises (MMNFF), Elixinol Global (ELLXF), Planet 13 Holdings (PLNHF), Wayland Group (MRRCF), Khiron Life Sciences (KHRNF) and Liberty Health Sciences (LHSIF).