Aurora Cannabis Inc. (TSX:ACB), one of the Canadian marijuana stocks, said it has secured a maximum number of lots in the German Cannabis Production Tender
SmallCapPower | April 9, 2019: Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB), one of the Canadian cannabis stocks, Friday announced that it has won the public tender to cultivate and distribute medical cannabis in Germany. Aurora Cannabis was awarded the maximum number of lots (5 of the 13 lots) in the German Cannabis Production Tender, over a period of four years and a minimum supply of 4,000 kg in total. The contract will be formalized at the earliest on April 17, 2019. Under the contract, the produced cannabis will be sold to the German government and supplied to wholesalers for distribution to pharmacies.
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Total of 79 companies participated in the tender, out of which three companies (Aphria Inc., Aurora Cannabis Inc., and Wayland Group Corp) were selected by the German Bundesinstitut für Arzneimittel und Medizinprodukte BfArM (Federal Institute for Drugs and Medical Devices) to cultivate and distribute medical marijuana, based on the concept submitted for domestic cannabis production, delivery and pricing.
Aurora Cannabis Chief Global Business Development Officer Neil Belot said, “We are very proud to have been selected as one of only three companies by the German government, which is a great achievement by our team. Having the highest rated concept is a strong validation of the Aurora Standard cultivation philosophy, as well as of our track record in the delivery of safe and high-quality medical cannabis products to the German system. We commenced delivering dried cannabis flower from Canada to the German market in 2017, and recently added cannabis extracts to our offerings for German patients. Winning the tender reflects a natural evolution for Aurora, establishing a more prominent local footprint in this important international market with over 82 million people.”
Aurora Cannabis plans to construct an EU GMP compliant indoor cultivation facility, which will be located at the industrial park in Leuna, Saxony-Anhalt, near Leipzig. The facility would be designed with extra production capacity than the tendered amount, in order to provide flexibility in meeting future growth.
Aurora Cannabis is one of the largest and leading vertically-integrated cannabis companies in the world, having funded capacity of over 500,000 kg annually, and sales & operations in 24 countries across five continents. Aurora Cannabis stock surged ~3% on April 5, 2019 to C$12.28. It currently trades at a market capitalization of C$12.4 billion with a price-to-book multiple of 2.9x.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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