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Aurora Cannabis Inc (CVE:ACB)(OTCMKTS:ACBFF) Ready To Capitalize On Canada's Green Rush

Aurora Cannabis Inc (CVE:ACB)(OTCMKTS:ACBFF) Ready To Capitalize On Canada's Green Rush
Written by
Richard Sandle
Published on
May 23, 2017
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When we last reviewed Aurora Cannabis Inc (OTCMKTS:ACBFF)(CVE:ACB) on April 11, 2017, the stock was looking to test its high of US$2.72 which it closed at on November 18, 2017. However, the stock got only as high as US$2.65 before retracing to US$1.88. It is currently trading at US$1.84 near an uptrend support line.Before we get into the details, a little background for our readers taking their first look at the Company. Aurora's wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical cannabis pursuant to Health Canada's Access to Cannabis for Medical Purposes Regulations ("ACMPR"). The Company operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta, and is currently constructing a second 800,000 square foot production facility, known as "Aurora Sky", at the Edmonton International Airport, and has acquired, and is undertaking completion of, a third 40,000 square foot production facility in Pointe Claire, Quebec, near Montreal. In addition, the company is the cornerstone investor with a 19.9% stake in Cann Group Limited, the first Australian company licensed to conduct research on and cultivate medical cannabis.Aurora Cannabis Inc has taken some significant steps towards executing its plan and increasing shareholder value. Aurora Cannabis Inc has announced some changes to senior management and its board of directors. On May 8, 2017, the Company announced that it appointed Glen Ibbott as Chief Financial Officer, replacing Amy Stephenson who had acted as the Company's Interim CFO since August, 2016. Glen Ibbott is a seasoned senior healthcare executive with over 20 years' experience providing financial leadership to various public entities, including management of Canadian and international capital market strategies, M&A, tax and finance, predominantly within the life sciences sector.Additionally, the Company announced the appointment of Andrea Paine as its Director, Québec Affairs. Andrea Paine is a former Citizenship Judge with over twenty years of experience working for Cabinet Ministers in both the Québec Provincial and Federal Governments. Mrs. Paine will be responsible for external communications in Québec, including government and community relations. The Company also announced on May 8, 2017 that Mr. Chuck Rifici resigned as a Director of the Company to focus on a new venture.On the financial front, Aurora Cannabis Inc announced on May 2, 2017 that it completed its bought deal private placement of 7.0% unsecured convertible debentures of the Company with a syndicate of investment dealers, for gross proceeds of C$75 million. The Company intends to use the net proceeds of the Offering for international expansion and growth opportunities.

"With a cash position exceeding C$160 million, we are exceptionally well positioned to execute on our expansion strategy, both nationally and internationally," said Terry Booth, CEO. "The acquisition of Peloton in Quebec and our investment in Cann Group in Australia are the first steps in growing our footprint, and we will continue to pursue aggressively other opportunities we have identified to transform Aurora from one of the largest Canadian cannabis companies into a global leader."

On the sales side, as of April 20, 2017, Aurora Cannabis Inc has commenced sales of a new product line of ingestible cannabis oils called Aurora Drops. The Company's newest offerings include three distinct product types all priced equally at a standard flat rate of C$115 per bottle, or C$80 per bottle for clients approved for Aurora's compassionate pricing program. Neil Belot, Chief Global Business Development Officer said:

"The launch of our first ingestible oil products represents a major milestone, which promises to add significantly to Aurora's top and bottom line results, we have produced a sizeable inventory of Aurora Drops for our domestic medical client base, and will be continuing to ramp up production in order to address the strong demand we anticipate for high-quality, high-margin derivative products, manufactured under the rigorous Aurora Standards regarding processes, testing, and transparency."

In its financial and operational results for the quarter ended March 31, 2017, Aurora Cannabis Inc reported that it has C$126.5 million in working capital, and its sales pace has exceeded C$2 million in gross monthly revenues. A sharp increase for both from the same period last year. Current market capitalization stands at US$631.38 million, on 342.98 million shares outstanding as of May 19, 2017. Aurora Cannabis continues to successfully execute its growth strategy. Overall, the Company is well positioned to capitalize on the upcoming legalization of recreational use of cannabis once it goes into effect. We will be updating our subscribers as soon as we know more. For the latest updates on ACB/ACBFF, sign up below!Disclosure: We have no position in ACB/ACBFF and have not been compensated for this article.

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