Aurora Cannabis Development Could Further Propel its Stock

Aurora Cannabis Inc. (TSX:ACB), one of the Canadian marijuana stocks, now has a production license for its Quebec facility and its MedReleaf subsidiary can begin making cannabis oil in this market news

SmallCapPower | September 11, 2018: Aurora Cannabis Inc. (TSX:ACB) announced recently that it has received a Health Canada production license for its Aurora Eau facility in Lachute, Quebec. The Company now has seven production facilities with a combined production capacity in excess of 160,000 kg per annum. Aurora Cannabis, one of the Canadian cannabis stocks, has additional facilities under development, bringing the total funded capacity to more than 500,000 kg per annum.

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Aurora Eau is a 48,000 square foot facility with a production capacity of 4,500 kg per year, built on 46 acres of prime agricultural land, which Aurora has the right to purchase for $136,000 for future expansion purposes. This facility adheres to EU GMP standards and is a state of art indoor-grow facility. Aurora Eau has been built to allow flexibility in all key production parameters to optimally accommodate the Company’s current “exotic” cultivars, new strains not yet launched and new genetics under development, intended for both the medical and adult consumer use markets.

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MedReleaf, Aurora Cannabis Inc.’s wholly-owned subsidiary, also received its oils production license for its Bradford facility, which has a capacity is a 28,000 kg per annum. MedReleaf features a high-volume CO2 extraction process, which should significantly increase oils production, and is in the process of stockpiling significant quantities of derivative products in anticipation of receipt of its sales license.

Aurora Cannabis has two EU GMP cultivation facilities in Canada, and one EU GMP certified facility located in Germany, to date. Cultivation has commenced at Aurora Eau, following receipt of a mix of clones and mature plants using a custom built, environmentally-controlled transporter, designed by Aurora’s wholly-owned subsidiary BC Northern Lights. The new transporter allows Aurora Cannabis to transport high-volumes of clones and mothers cost-effectively, enabling the rapid population of new facilities.

Aurora Cannabis CEO Terry Booth said, “We are proud of the achievements at Aurora Eau, and with seven production licenses we are exceptionally well positioned to continue executing on our early mover advantage, in both the Canadian and the International markets. With large-scale production scaling up at Aurora Sky, we have the ability to dedicate production from Aurora Eau to niche markets, thereby growing our brand recognition and enhancing our margin profile. Our new oils production license at Bradford further increases our capacity to produce higher margin oils, and drive growth.”

Aurora Cannabis trades at a market capitalization of $7.73 billion with a price to book multiple of 3.31x.

Disclosure: Neither the author nor his family own shares in the company mentioned above.

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