Cannabis oil products of Aurora Cannabis Inc. (TSE:ACB) have proven to be a significant sales driver
SmallCapPower | September 6, 2017: Aurora Cannabis Inc. (TSX: ACB) recently provided operational update with continued strong patient growth. As of August 28, 2017, Aurora has surpassed 19,000 active and pending registered patients less than 20 months after the Company’s first product sale in January, 2016. Aurora Cannabis added ~3,000 patients during the months of July and August, 2017.
Aurora Cannabis is on track to set a new monthly revenue record, projecting gross revenues for cannabis sales in Canada and Germany to exceed $3.0 million for August 2017. In Canada, Aurora Cannabis anticipates selling more than 275,000 grams or gram equivalents of cannabis products, and shipping ~15,000 orders this month. Both figures represent new highs for Aurora Cannabis. Exceptional demand for the Company’s cannabis oil products has proven to be a significant revenue driver, with sales now representing ~26% of gross revenues.
Construction of the Company’s new 800,000 square foot, 100,000+ kg per annum Aurora Sky production facility at Edmonton International Airport (“EIA”) is progressing well. With the project moving ahead, management reiterates its expectation of having plants growing in the facility before the end of 2017, with completion of the Aurora Sky construction anticipated in the first half of 2018.
Aurora Cannabis’ new Aurora Sky facility prototype would result in a slightly smaller facility, boasting production efficiencies of nearly double those of Aphria or Canopy, due to its greenhouse technology that includes automated climate control, which should result in significant cost reductions, potentially making Aurora the most profitable player in the Canadian space.
In terms of valuation, Aurora Cannabis currently trades at TTM price to sales value of 44.38x.
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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