Aurora Cannabis has made a long awaited push into the world's biggest legal cannabis marketplace. On Wednesday, the marijuana company disclosed it has ventured into a $40 million deal to buy Reliva, one of the US top-selling retail cannabidiol (CBD) brands.

Cannabidiol is among several properties found in cannabis plants. CBD does not intoxicate consumers as compared to marijuana, which contains elevated amounts of tetrahydrocannabinol (THC). Instead, increasing numbers of users in the US and other parts of the globe are using CBD products touted for their health benefits.

The Edmonton-based Aurora Cannabis is a licensed Canadian producer of cannabis. The deal will include a potential earn-out worth around a maximum of $45 million that can be payable in ACB shares over the span of two years contingent upon Reliva hitting its financial goals. Subject to closing terms, the deal is estimated to be finalized next month.

ACB disclosed that it was drawn to Reliva because of the company's management track record in the sale and marketing of legal consumer packaged products, its connections with key business firms that provide a wide scope of distribution network in the US, and its sound financial structure.

Shares of Aurora ended off almost 14 percent ahead of Wednesday afternoon's acquisition disclosure. The stock was up higher during extended sessions. However, in the past four quarters, ACB has shed almost 90 percent of its stock value basing on Wednesday's final figures.

In an interview with Frank Holland of CNBC, Aurora executive chairman and interim chief executive officer Michael Singer said that he thinks the Reliva buyout is a very "responsible strategic entry into the US market," adding that for Aurora, "it delivers a key aspect of our reset plan."

Aurora Cannabis took another Overweight Rating for its shares from market analyst Cantor Fitzgerald on Thursday, who also lifted its stock price aim from C$22 to C$27 ($19) after ACB made public its long-awaited acquisition of Reliva.

Reliva is a well-known seller of hemp-based CBD products in the US. The company's products are found in over 20,000 retail outlets across the nation.

The consumer CBD market is currently hounded by temporary obstacles in the US, but the landscape has long-term upside, with valuations pulling back, and some analysts think Reliva has its own distinct channel and market foothold that has allowed it to perform solidly even prior to the coronavirus crisis that dealt a heavy blow to the world's economies.