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Aurora Cannabis Showing Good Growth, Execution

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Aurora Cannabis Inc. (TSX:ACB) is also set to enter new high value-added, high margin segments of the medical and consumer markets

SmallCapPower | July 6, 2018: Aurora Cannabis Inc. (TSX:ACB) Tuesday announced that it has been granted its sales license by Health Canada for its Vie production facility in Pointe-Claire, Quebec on June 29, 2018. This comes eight months after Aurora Cannabis got its cultivation license. Aurora Vie facility is operating on full commercial mode with target to produce at a rate of 4,000 kg per year of high-quality cannabis by October 2018. To date, multiple harvests of cannabis have been completed. Aurora Cannabis’ strategic partner, Capcium, is currently installing equipment to commence high-volume production of cannabis softgels.

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Furthermore, Aurora Sky completed its first harvest on June 28, 2018 and a second harvest is planned within the next two weeks. After a second harvest is completed, Aurora Cannabis will seek sales license from Health Canada. Aurora Sky, located at Edmonton International Airport, has been billed as the world’s most technologically advanced cannabis production facility. The Company expects its facility to operate at full capacity of more than 8,000 kg each month by the beginning of 2019. Subsequently, Aurora Cannabis expects a remarkable increase in product availability across all three market segments: Canadian medical; Canadian adult consumer use; and international medical. With a total footprint exceeding 800,000 sq. ft., Aurora Sky is estimated to produce more than 100,000 kg per year of high-quality cannabis.

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Aurora Cannabis is also set to enter new high value-added, high margin segments of the medical and consumer markets. Recently acquired by Aurora Cannabis, CanniMed Therapeutics has received Health Canada approval to begin sales of CanniMed Capsules, a line of vegan capsules, the first of which – CanniMed Capsules 3:3 – will be available in August 2018. Each capsule contains a balanced dose of THC and CBD. A high CBD capsule is also under development.

Additionally, Aurora Cannabis received a license from Health Canada for the production of encapsulated oil for its Mountain facility. The Company will be producing unique, integral hard shells for the medical markets, as well as for the adult consumer use market, once legalized.

Aurora Cannabis Inc’s second EU GMP compliant high technology facility, Aurora Sun, located in Medicine Hat, Alberta, is undergoing construction for which excavation is 75% complete. The facility is currently slated to be 50% larger than Aurora Sky, at 1.2 million sq. ft., which will produce more than 150,000 kg of high-quality cannabis per year.

Aurora Cannabis currently trades at a market capitalization of $5.26 billion on the TSX with a price-to-book multiple of 3.79x and EV/revenue of 122.38x.

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

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