Aurora Cannabis Inc (NYSE:ACB) is the best of breed in the producers. However, what if the growth magic that defines the cannabis space is set to migrate from the producers to the services providers (dispensary technology, finder services, pick and shovels, etc)? We have seen billions of dollars pour into ramping up capacity. But, like any commodity, an excess in capacity investment leads inevitably to a decline in commodity prices. It does not, however, lead to a decline in adoption or demand. In fact, the resultant lowering in prices leads to increased popularity of the product. That would seem to augment the case for services plays in the space.
That’s why we aren’t particularly surprised to see relatively little upside for ACB shares in reaction to news that the company just announced the official opening of its latest elite, high-tech cannabis production facility in Lachute, Quebec (known to the world as Aurora Eau). According to the release, “At 48,000 square feet, with 11 purpose-built grow rooms, Aurora Eau will produce up to 4,500 kg of high quality cannabis per year, all in a facility with some of the lowest electricity costs in North America . It is designed to grow niche varieties of cannabis for the premium medical and adult consumer use markets in Quebec, Canada and around the world. Eau becomes Aurora’s second production facility in Quebec, the first being Aurora Vie, a 40,000 square foot indoor grow facility in Pointe Claire, Quebec.”
Aurora Cannabis Inc (NYSE:ACB) is one of the most widely diversified players in the cannabis space due to its powerful strategic investments.
The next big cannabis story to hit North America is Phoenix Life Science International (PLSI), traded in the US, but with the largest global production based in the tropics and a license to distribute worldwide. Take a look at Phoenix Life Science International PLSI), Its currently trading under $18 dollars per share on the OTC markets. Learn More Now!
In addition, the company has demonstrated 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.
We would also note that 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, 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 ACMPR.
We would expect expansion on the way given the inflow of investment capital. But, at present, 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.
Aurora Cannabis Inc (NYSE:ACB) generated sales of $19.1M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 18.9% on the top line.
We started off by noting that ACB just hit the wires with the announcement of the official opening of its latest elite, high-tech cannabis production facility in Lachute, Quebec, known to the world as Aurora Eau.
The stock is up on the news. Overall, shares of ACB have rallied about 24% over the past week. That sets up an interesting context for the action tomorrow. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -30%.
“We’re thrilled to officially open our latest technologically advanced facility in the Lachute Region and proud to continue to invest in Quebec,” said Terry Booth, CEO of Aurora. “There is incredible potential at Aurora Eau. It’s designed to be a place where our expert cannabis cultivators have the flexibility and control to produce some very special high-end varieties that few commercial growers are prepared to tackle. We intend to make some very rare and exciting products there.”
In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($149.4M against $75.2M).
Pushing the barriers for global distribution, Phoenix Life Science International (PLSI) is the next cannabis play. Just think Canopy x 100, that is how big their plantation in the tropics will be. No lights, no green houses, just maximum growth + minimal cost = home run. Learn More Now!
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