International expansion represents a huge milestone for Aurora Cannabis and marks the first step in unlocking the future potential markets in the EU
SmallCapPower | September 25, 2017: Aurora Cannabis Inc. (TSX: ACB) announced recently that it has received all the required permits to ship dried cannabis flower from Canada to Germany, enabling the Company to enter into the German medical cannabis market through its wholly-owned subsidiary Pedanios, Germany’s leading medical cannabis distributor. Aurora is now in receipt of a Health Canada issued Export Permit, as well as provisional import status from the German Bundesopiumstelle (Federal Narcotics Bureau), to import medical cannabis products into Germany. Import permits for additional product have been secured, and ongoing, regular shipments are scheduled. Post the announcement, Aurora Cannabis shares climbed 2.5%.
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On September 18, 2017, Aurora Cannabis shipped 50 kg of dried cannabis from its facility in Mountain View County, Alberta, to Berlin-based Pedanios. Upon delivery to Pedanios, the product will be distributed to a network of more than 1,500 pharmacies across Germany, a country of more than 82 million people. Germany currently represents the largest single federally-legal medical cannabis market in the world, and is experiencing a significant shortage of supply. Through Pedanios, Aurora Cannabis plans to become a top producer and supplier of medical cannabis products in Germany, as well as other European Union (EU) markets.
This international expansion represents a huge milestone for Aurora Cannabis and marks the first step in unlocking the future potential markets in the EU. Additionally, the expansion strongly validates Aurora’s acquisition of Pedanios as one of the most significant strategic transactions to date in the cannabis industry.
Pedanios, over the last 90 days leading up to its acquisition by Aurora Cannabis, had achieved cash flow positive operations, with gross revenues of about C$1.15 million, and costs of approximately C$1 million. Revenues for May, up to and including May 26, 2017, were approximately C$0.5 million, reflecting a 410% increase in the daily sales pace as compared to average for the eight months prior to the introduction of the new law, and an increase over the April and March 2017 averages of 70% and 108%, respectively.
Aurora Cannabis shares have climbed over 15% during the past month and are currently trading at Price to TTM Sales of 76.36x and Price to Book of 5.91x.
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in the company mentioned above.
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