AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) is one of the leading players in the raging Canadian cannabis space. We have been strong fans of ACBFF over the past year because of its topline growth and fortress balance sheet – nearly $120M in cash against basically no current liabilities. Revenues are up over two thousand percent in the past year. It’s a monster. The market has priced in this growth by taking the stock over 300% higher in that time. But we are looking at a chart that is far from overbought at present, having consolidated gains for the past 8 months in a lateral pattern.
As far as recent catalysts, ACBFF announced last week that, further to the Companies’ press release of June 8, 2017, as well as Hempco’s press releases of June 16 and June 23, 2017, the companies have agreed to amended terms whereby Aurora will make a strategic investment in Hempco for an ownership stake of up to 19.9% on a fully diluted basis, subject to applicable regulatory approvals. Hempco is one of the world’s largest producers of industrial hemp products. This move further diversifies the operational exposure for ACBFF investors, which is always a welcome development.
AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) is a licensed producer of medical marijuana pursuant to the Marijuana for Medical Purposes Regulations and operates a 55,200 square foot expandable state-of-the-art production facility in Alberta, Canada.
ACBFF’s wholly-owned subsidiary, Australis Capital Inc., seeks to be an active participant in the U.S. Cannabis market. Aurora is trading on the Canadian Securities Exchange under the trading symbol “ACB”. The company is headquartered in Vancouver, Canada.
According to company’s materials, “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) and operates a 55,200 square foot, expandable, state-of-the-art production facility in Mountain View County, Alberta, Canada. Aurora trades on the TSX Venture Exchange under the symbol “ACB”.”
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As noted above, ACBFF recently made a strategic investment to diversify its operational exposure, bringing industrial hemp into the fold of its direct interests. In addition, Aurora will be granted an option to acquire certain shares from the majority owners of Hempco, which, upon exercise, would bring Aurora’s total ownership interest in Hempco to 50.1% on a fully diluted basis. If Aurora elects to exercise this Option, the shares will be acquired in tranches, the pricing of which is contingent on certain performance milestones of Hempco.
Note, this additional stipulation is subject to customary conditions including Hempco shareholder approval and the negotiation and execution of an option agreement.
“Having successfully completed due diligence, we have decided to progress with our strategic investment in Hempco, thereby gaining access to a rapidly growing health supplement market, as well as securing considerable quantities of low-cost raw material for the potential future production of CBD extracts,” said Terry Booth , CEO of Aurora. “The diversification that our investment in and collaboration with Hempco brings to Aurora further strengthens our position as innovation leader in the industry, and we look forward to executing on our partnership with Hempco.”
We’ve witnessed 18% during the past month in terms of shareholder gains in the stock. Market participants may want to pay attention to this stock. ACBFF is a stock who’s past is littered with sudden rips. What’s more, the company has witnessed a pop in interest, as transaction volume levels have recently pushed 28% over the long run average.
At this time, carrying a capital value in the market of $696.89M, ACBFF has a significant war chest ($118.1M) of cash on the books, which compares with virtually no total current liabilities. ACBFF is pulling in trailing 12-month revenues of $13.4M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 2260.7%. This may be a very interesting story and we will look forward to updating it again soon. For continuing coverage on shares of $ACBFF stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $ACBFF, either long or short, and we have not been compensated for this article.