Aurora Cannabis Hits Another Milestone in Move Towards Canopy Growth

Aurora Cannabis Inc. (TSE:ACB) stock climbed after the Canadian marijuana company received a cultivation license for its Quebec facility

SmallCapPower | November 1, 2017: Aurora Cannabis Inc. (TSX:ACB) shares climbed more than 5% on Monday after the Company announced the receipt of cultivation license from Health Canada for its 40,000-square foot indoor production facility in Pointe-Claire, Quebec. To be known as “Aurora Vie,” the facility makes Aurora the second licensed producer in Canada’s largest province, Quebec. Aurora Cannabis operates a 55,200-square foot facility in Mountain View County, Alberta, and the current license for the second facility would almost double the company’s total production capacity to ~10,000 kgs per year. Aurora Cannabis is also constructing a mammoth 800,000 square foot production facility, known as “Aurora Sky,” at the Edmonton International Airport, that will boost the total production capacity to more than 100,000 kgs per year. Key cannabis players in Canada including Canopy Growth Corporation (TSX:WEED), Aphria Inc. (TSX:APH), and Aurora Cannabis are scrambling to boost capacity to capture a slice of the large market opportunity once the recreational market is legalized in Canada in mid-2018.

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Acquired when the facility was 80% complete in April 2017 for $7 million, Aurora Cannabis invested $3.0 million in configuration and technology upgrades to complete Aurora Vie in less than six months. The new facility has as an annual cultivation capacity of ~4,000 kg of high-quality cannabis and allows growing a wide variety of strains due to its yield-optimized design. First harvest from the facility is expected in the first calendar quarter of 2018.

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Aurora Cannabis generated $18.9 million for FY2017 ended June 2017, selling about 2.4 million grams of cannabis. The Company’s current market capitalization stands at $1.14 billion, translating into a price-to-sales multiple of 60.0x.

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