Aurora Cannabis Inc (OTCMKTS:ACBFF) continues to be, as we see it, the best of breed player in the cannabis space. There are plenty of high-growth names with strong balance sheets. But only Aurora and Canopy have taken such powerful steps to build a strategic investment portfolio with their high-cash operations. And Aurora, as we see it, is more diversified and better positioned in that sense.
Now, as kind of an afterthought, we will get to the big news: The company just announced today that it has filed an application to list its common shares on the New York Stock Exchange. This should be a fait accompli as we see it. The company is far superior to Tilray (TLRY) in just about every sense – including profitability, balance sheet, and leadership – that the exchange and investment banking community will be interested in. So, the approval should come with little difficulty, and then we willl begin the process of building the buzz for the retail investor crowd.
Aurora Cannabis Inc (OTCMKTS:ACBFF) is one of the most widely diversified players in the cannabis space due to its powerful strategic investments.
In addition to the Company’s rapid organic growth and strong execution on strategic M&A, which to date includes 15 companies – MedReleaf, CanvasRX, Peloton Pharmaceutical, Aurora Deutschland (formerly Pedanios), H2 Biopharma, Urban Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics, Anandia Labs, HotHouse Consulting, Agropro, Borela, and the pending acquisition of ICC Labs – Aurora is distinguished by its reputation as a partner of choice and employer of choice in the global cannabis sector.
The company has invested in and established strategic partnerships with a range of leading innovators, including: The Green Organic Dutchman Holdings Ltd. (TSX: TGOD), Radient Technologies Inc. (TSXV: RTI), Hempco Food and Fiber Inc. (TSXV: HEMP), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), Namaste Technologies Inc. (TSXV: N), Evio Beauty Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC: CTTH), and Alcanna Inc. (TSX: CLIQ).
However, just drilling down into its core cannabis production operations, through Aurora Cannabis Enterprises Inc, trumpets itself as “one of the world’s largest and leading cannabis companies” and 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, known as Aurora Mountain, 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, on Montreal’s West Island.
So, if Aurora is headed for the big board, what does that really mean?
First off, it means that investors who want exposure to the cannabis space, but who have their money tied up in strictly regulated vehicles (and, therefore, can’t buy OTC or foreign stocks) will suddenly have access to something other than just TLRY and CGC.
The upshot is that an Aurora that trades on the NYSE should pop the TLRY bubble.
According to the release, “Listing of the Company’s common shares on the NYSE remains subject to the approval of the NYSE and the satisfaction of all applicable listing and regulatory requirements. Aurora anticipates that, subject to receipt of all required approvals, trading in its common shares on the NYSE will commence before the end of October 2018. In advance of the intended listing, the Company has filed a Form 40-F Registration Statement with the United States Securities and Exchange Commission.”
In other words, Aurora Cannabis Inc (OTCMKTS:ACBFF) is setting up to make waves once again.
Besides popping the TLRY bubble (the stock is probably worth about $19/share and is currently trading at $140 following a test of $300), there will likely be two other big impacts: First, it will spark a rash of new applications from other companies (APHQF? OGRMF? Several come to mind). Second, the accelerating in capital raising will step up the timeframe for the impact of glut conditions in the cannabis market on a commodity level.
But, that’s likely still a ways out. For now, let the buzz begin.
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