AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) shares have been in buy mode since September 2016 expanding its market cap and valuation from around $100M to it’s current level hovering around $500M. If you have been watching the stock, it has become a deeply traded bell weather for the cannabis sector expanding its share count while holding its value.
Not all Cannabis stocks have done this, and many others have traded thinner than portfolio managers would like, but Aurora has kept it’s value. Noteworthy is that they made a high into the election, and have a .30 cents to just under $3.00 range over the last 52 weeks.
AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) has also increased liquidity along the way, averaging more than 500,000 in trading volume on a normal trading day. Aurora has made a number of smart moves (see below) using stock and cash to expand and seize opportunities.
See the $ACBFF yearly chart below.
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 constructing a second 800,000 square foot production facility, at the Edmonton International Airport.
In a recent move the company announced that it is in talks to acquire Peloton Pharmaceuticals Inc. who is constructing a 40,000 square foot cannabis production facility in Pointe Claire, Quebec. In a recent press release the company estimates that construction of the Peloton facility is 80% complete, and expects to be ready for inspection pursuant to a License to Produce by the summer of 2017.
Under the terms of the Proposal, and subject to all conditions precedent being satisfied, the Company will provide a total investment pool of $7,000,000 of cash and common shares of Aurora for distribution to creditors. This may help explain the recent selloff in shares.
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Completion of the acquisition of Peloton is conditional upon, among other things, the Proposal being approved by the Quebec Superior Court of Justice and TSX Venture Exchange approval. The motion to approve the Proposal is scheduled to be heard by the Court in late March.
On other fronts CEO Terry Booth completed the first step in a two-step process that will provide Aurora clients and the general public with access to a simplified Certificate of Analysis (CoA) for every cannabis product available for sale on the Company’s menu. The purpose of the new protocol is to provide clients with secure knowledge that every Aurora product available for purchase has been certified by an independent third-party laboratory as having passed testing for the widest possible range of potential contaminants.
“This initiative further extends Aurora’s best-in-class Quality Assurance and testing protocols, and gives our clients additional certainty regarding the purity and safety of the cannabis we produce and sell,” said Terry Booth , CEO. “From the founding of our Company, we have established and emphasized a strict culture of regulatory compliance. We have never used pesticides in our production, yet we have always tested all the products we sell for the presence of pesticides and other potential contaminants. It is imperative that patients have confidence in the safety of the products they consume, and in the integrity of the medical cannabis system. We believe our testing disclosure process will raise the bar for the entire sector, and offer a model for other companies to follow.”
Aurora has used independent laboratories to test every lot of product ever sold to clients for microbial contamination, as well as any potential contamination by heavy metals and pesticides. In October, 2016, ACBFF enhanced its procedures further by shifting its testing to Anandia, which is able to test cannabis for the presence of the broadest array of substances of any independent commercial laboratory in Canada. Since that time, Anandia has tested and passed 45 lots of Aurora products.
“Aurora’s initiative to provide access to quality control test results will help their clients select the appropriate medication and give them peace of mind that it does not contain pesticides or other contaminants,” said Dr. Jonathan Page, President and CEO of Anandia Labs.
“Our industry leading testing protocols analyze for the presence of 51 pesticides and plant growth regulators, as well as other contaminants such as bacteria and heavy metals. We fully support Aurora in their efforts to bring a new level of transparency to the medical cannabis industry.” We have followed this story closely – and will follow up again on as soon as new information hits the wires. For continuing coverage on (OTCMKTS:ACBFF) and other fast-moving penny stocks, please subscribe to OracleDispatch.com below.