Aurora Cannabis Inc (OTCMKTS:ACBFF) Flashing Opportunity on Pullback

Aurora Cannabis Inc (OTCMKTS:ACBFF) Flashing Opportunity on Pullback


Aurora Cannabis Inc (OTCMKTS:ACBFF) is finally showing signs of corrective action over recent days. It had to happen. No stock simply goes higher. In this case, the real question is: Where do we look for key levels to BTD? Our technical analysis suggests levels of key support at the 50-day simple moving average (roughly $7.75) and the January lows at $7.67. That points to confluence in the zone from $7.65-7.75 as a potential opportunity. If that level is taken out, we could see a test of the November highs around $6.75.

The most recent key catalyst for the company comes in the form of its announcement that it has received a cultivation license from Health Canada for Aurora Sky, the Company’s 800,000+ square foot hybrid greenhouse facility, under construction at the Edmonton International Airport. According to the release, “Aurora Sky will be the world’s most technologically advanced and largest capacity purpose-built cannabis facility, focused on the mass-cultivation of ultra-low cost, high-quality cannabis.”

Aurora Cannabis Inc (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. The Company operates a 55,200 square foot, state-of-the-art facility in Mountain View County, Alberta, 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.

In addition, the Company holds approximately 9.6% of the issued shares (12.9% on a fully-diluted basis) in leading extraction technology company Radient Technologies Inc., based in Edmonton, and is in the process of completing an investment in Edmonton-based Hempco Food and Fiber for an ownership stake of up to 50.1%. Furthermore, Aurora is the cornerstone investor with a 19.9% stake in Cann Group Limited, the first Australian company licensed to conduct research on and cultivate medical cannabis. Aurora also owns Pedanios, a leading wholesale importer, exporter, and distributor of medical cannabis in the European Union, based in Germany.”

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The licensing of Aurora Sky is a game-changing milestone for the cannabis industry and an exciting inflection point in Aurora’s corporate development,” said Terry Booth, CEO. “This is the world’s largest cannabis facility ever to be licensed. It marks the beginning of a rapid production ramp-up that will see us produce over 100,000 kg of cannabis per year at this facility alone” said Terry Booth, CEO. “This is our second new facility to receive a cultivation license in three months – a true testament to Aurora’s industry-leading ability to execute. The additional cultivation capacity will allow us to further expand our domestic and international market share very quickly, and is expected to significantly accelerate revenue growth this year.”

Mr. Booth added, “I am incredibly proud of our team, our suppliers and contractors, and grateful to the Edmonton International Airport, Leduc County, and the Province of Alberta for their continued support, which has enabled Aurora to achieve this milestone, on a very complex project. We now look forward to immediately scaling up production to meet the massive demand anticipated with the pending legalization of adult consumer use and the continued growth of Aurora’s international medical markets.”

Earning a current market cap value of $3547.4M, ACBFF has a significant war chest ($127.9M) of cash on the books, which must be weighed relative to virtually no total current liabilities. ACBFF is pulling in trailing 12-month revenues of $23.2M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 168.6%. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $ACBFF stock, as well as other hot stock picks, get 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.

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