The Inside Scoop On Aurora Cannabis Inc (CVE: ACB) (OTCMKTS: ACBFF)

Aurora Cannabis Inc (CVE: ACB) (OTCMKTS: ACBFF) is the third largest Canadian LP after Canopy Growth Corp (TSE:WEED)(OTCMKTS:TWMJF) and Aphria Inc (TSE:APH)(OTCMKTS:APHQF). In some ways it doesn't get as much attention, but the company has certainly delivered for its shareholders within the last year. Its American OTC shares have risen from $.31 to as high as $2.96. for gains of over 800%. While shares have backed off the 52 week highs, Aurora Cannabis is making another run towards the highs as investor enthusiasm increases over recreational marijuana legalization in Canada. Here's the insider scoop and why we like Aurora Cannabis Inc.First up, a little background on the company for our readers taking their first look at an exposure. 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, highly automated production facility at the Edmonton International Airport. The Aurora Sky project has secured advanced technology from the most renowned design and construction suppliers in the Netherlands.The biggest catalyst for Aurora and one which changes the dynamics of the entire cannabis landscape is federal recreational marijuana legalization in Canada. Back in December, we saw the Canadian Federal Task Force issue its recommendations on how to legalize recreational marijuana use. The proposals included a minimum purchase age of 18, federal oversight on production, provincial governments charged with retail distribution and maintaining criminal offenses for illicit production and trafficking. The Task Force was lead by Canada’s former attorney general and offered more than 80 recommendations on how Canada could become the largest developed-world country to legalize marijuana. The legislation is set to go into effect on July 1st.Aurora plans to meet the expected increase in demand from the legislation with its new Aurora Sky facility. This new hybrid greenhouse facility, with a footprint larger than 16 football fields, is expected, on completion by October 2017, to be the largest, most advanced and most automated cannabis production facility in the world. Situated on 30 acres of leased land in Leduc County, Alberta, management anticipates Aurora Sky to be capable of producing in excess of 100,000 kilograms of high quality, low cost cannabis per year. The location of the new facility provides unrivaled access to transportation, industrial infrastructure, power, water, gas, and courier services.Aurora just acquired its third growing facility after closing the purchase of Peloton Pharmaceuticals Inc, a Montreal-area late-stage ACMPR-applicant. Peloton is constructing a state-of-the-art 40,000 square foot cannabis production facility in the City of Pointe-Claire, Québec, which received a “ready to build” letter from Health Canada in 2014. At full capacity, the facility is expected to be capable of producing up to 3,900 kg of high quality cannabis per year. Aurora management believes the Peloton facility is approximately 80% complete, and can be ready for Health Canada’s pre-licensing inspection by the second half of 2017.Aurora is also well-positioned in Australia after agreeing to a 19.9% stake in Cann Group, the first company in Australia ever to be licensed for research and cultivation of medical cannabis for human use. This deal made Aurora the cornerstone investor in the IPO. Under the terms of the subscription agreement Aurora has committed to subscribe for 21,562,314 ‘new fully paid ordinary shares’ in Cann Group at the IPO offer price per share of AUD $0.30. Aurora’s total investment of AUD $6.5M (approximately CAD $6.6M) represents 47% of the AUD $13.5M offer. Following completion of the IPO expected in May, 2017, Aurora will hold 19.9% of the fully paid ordinary shares in Cann Group.The Commonwealth government in Australia amended its Narcotic Drugs Bill in February 2016 to legislate medical cannabis to provide an Australian supply and to encourage pathways to clinical trials. Cann Group seeks to become a leading producer and supplier of medicinal cannabis products to Australian patients. Cann Group is the first Australian company to be granted the necessary licences to cultivate medical cannabis for both research and human use, through its wholly owned subsidiary Cannoperations Pty Ltd.Currently trading with a market cap of US$859 million, Aurora Cannabis is resuming its trajectory higher as Canada is about to become the first western country to fully legalize recreational marijuana. The Canadian government has sought to regulate marijuana in a controlled manner and has communicated its intentions to the market quite clearly. This is in sharp contrast to the US where there's a battle between the states and the federal government over marijuana regulations. While marijuana is illegal on the federal level, states have been pushing and enacting their own laws. The Trump administration has not made things better as there have been contradictory reports as to how the administration will deal with the booming cannabis industry. As more money makes its way into the cannabis sector, we'll see more of that money investing in Canadian cannabis players like Aurora. Overall, Aurora looks to be a winner and the upward trend is showing no signs of slowing down.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.