Aurora Cannabis Inc (TSE:ACB) has begun selling vaporizers and has inked an agreement with Radient Technologies (CVE:RTI)
SmallCapPower | November 8, 2017: Aurora Cannabis Inc.’s (TSX:ACB) stock price has climbed 19% over the past two trading sessions to its current price of $3.75 a share, hitting an all-time high of $4.02 on Tuesday.
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On November 7, 2017, Aurora Cannabis said it has begun selling vaporizers thorough its website in a collaboration with Namaste Technologies Inc. (CSE:N).
And on Monday, Aurora Cannabis and Radient Technologies Inc. (TSXV:RTI) announced that they have signed a Master Services Agreement that will involve the provision of processing services by Radient to Aurora Cannabis. As per the agreement, Radient will work as an independent contractor for the production of extracts from cannabis and hemp supplied by the Company. Initial term of the contract is five years, extendible for another five years by Aurora Cannabis.
The agreement will initially cover Canada, Australia, and the European Union, including Germany where Aurora’s subsidiary Pedanios is the largest medical cannabis distributor in Europe. However, Aurora Cannabis can negotiate on an exclusive basis with Radient to expand the jurisdictions covered. The Master Services agreement also includes an Investor Rights Agreement, allowing Aurora to participate in future offerings and expand its ownership in Radient up to 19.99%. Aurora Cannabis will also have the right to appoint one director to the Radient Board.
Radient Technologies is yet to receive licensed dealer and producer status and hence will be able to commence production of cannabis extracts from products supplied by Aurora Cannabis post the receipt of licenses. Radient applied for Licensed Dealer status in December 2016, and for Licensed Producer status in February 2017.
The agreement with Radient will enable Aurora Cannabis in the near future to significantly accelerate the production of high-margin cannabis derivatives, particularly fast-growing non-smoked derivative cannabis products once the Company begins harvests in H12018 at the world’s largest 100,000+ kg per annum Aurora Sky production facility. Aurora Cannabis will also collaborate with Radient on other R&D projects that will be beneficial for both companies.
Post the two announcements, shares of Aurora Cannabis rose 8% to close at $3.75 on the TSX on Tuesday. Aurora Cannabis currently has a market cap of $1.5 billion, ~83x its trailing 12-month revenue of $18.1 million.
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