Aurora Cannabis Inc.’s (TSX:ACB) entry into the Maltese market is an important step for the Company as Malta is strategically located to serve export markets throughout Europe
SmallCapPower | July 27, 2018: Aurora Cannabis Inc. (TSX:ACB) Tuesday announced that it has received a Letter of Intent (LOI) from Malta Enterprise, signifying approval of its application for the establishment of a seed-to-pharma cannabis operation. A new subsidiary, Aurora Malta, will be formed with Aurora’s local Maltese partner Cherubino Ltd., which is the largest pharmaceutical wholesaler in the country with an operating history of more than 100 years. The new venture will have Aurora Cannabis as the majority shareholder. The proposed project will include the construction of a hybrid cultivation, manufacturing, and distribution facility.
This is the first cultivation LOI issued by the Maltese authorities to date. Aurora Cannabis will be allocated land for the development of its cannabis facility by Malta Industrial Parks Ltd. The production facility will be designed by Aurora Larssen Projects Ltd. (ALPS) and built using additional local expertise. Both the cultivation and processing operations will be accomplished as per EU GMP standards.
Through Pedanios, Aurora Cannabis has worked closely with its local partner Cherubino Ltd. to build up a concept for the cultivation of medicinal cannabis in accordance with the Maltese ‘Production of Cannabis for Medicinal and Research Purpose Act, 2018’. The Company is going to announce the final size and design of the facility shortly.
Aurora Cannabis Chief Global Business Development Officer Neil Belot remarked, “Aurora already was the first company to export medical cannabis to both Italy and Malta, and now are the first to receive approval for the production, processing, and distribution of cannabis in the country. Having an EU GMP compliant facility in Malta will position us well to serve multiple international markets, including Southern Europe and beyond. We are delighted to have Cherubino as our local partner, whose professionalism, reputation and standing in Malta were instrumental in establishing a local presence. We look forward to creating a thriving Maltese business, generating significant employment opportunities, and serving medical patients with high-quality cannabis products.”
Aurora Cannabis Inc.’s entry into the Maltese market is an important step for the Company as Malta is strategically located to serve export markets throughout Europe. Aurora Cannabis currently trades at a market capitalization of $3.93 billion with price-to-book multiple of 2.83x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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