44.6 F
New York
Wednesday, November 25, 2020

The Peculiar Cash Flow Problem of Aurora Cannabis Inc (OTCMKTS:ACBFF)

Must read

The Last Few Sessions Have Star Bulk Carriers Corp. (SBLK) Soaring

Star Bulk Carriers Corp. (SBLK) shares are trading at higher $7.64 and the avg recommendation for the stock is Strong Buy, while the current...

Renewed Optimism is Surrounding Caleres Inc. (NYSE:CAL)

Caleres Inc. (CAL) shares are trading at lower $12.33 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

When Will ZAGG Inc (ZAGG) Slow Down

ZAGG Inc (ZAGG) shares are trading at higher $3.50 and the avg recommendation for the stock is Strong Buy. To add more color to...

Will Willis Towers Watson Public Limited Company (WLTW) Find a Support Level Soon?

Willis Towers Watson Public Limited Company (WLTW) shares are trading at higher $203.92 and the avg recommendation for the stock is Moderate Buy, while...

Aurora Cannabis Inc (OTCMKTS:ACBFF) has been back on the mend over the past week, with shares popping higher off technical support in the $5.75/share area to re-establish a bullish position above the stock’s 50-day simple moving average. The company just announced today the closing of the previously announced strategic investment by Aurora in Liquor Stores by way of a non-brokered private placement.

This follows a number of similar moves by the company over the past few months as it continues to seek out creative ways to deal with the “problem” of too much cash from operations. Whenever we start to doubt the growth seen in this company – along with a few other big names in the Canadian cannabis patch – we just think of that dynamic: a problem of generating such a volume of cash from operations that efficient and diversified deployment is a puzzle. You can’t have a better problem than that.

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.”

Find out when $ACBFF reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

“We are very pleased to be invested in Liquor Stores, one of Alberta’s most recognizable retail brands,” said Terry Booth, CEO of Aurora. “Liquor Stores’ infrastructure, logistics and capacity to build and operate a large network of retail outlets provides a great opportunity for the cannabis industry to service what is anticipated to be a strong growth market. We look forward to playing our part in this partnership, and helping to establish a new customer experience for adult consumers.”

“Aurora has established itself as a global leader in the cannabis sector, based in our shared home province of Alberta,” said James Burns, CEO of Liquor Stores. “Combining Aurora’s expertise, insight and strong execution with Liquor Stores’ operational excellence in the retail of adult use controlled substances is a huge win not only for our company’s shareholders but also for ensuring that the public policy objectives for legalizing consumer use of cannabis are met responsibly.”

Recent action has seen 25% tacked on to share pricing for the company in the past eight days. Market participants may want to pay attention to this stock. ACBFF is a stock with a past that has featured a litany of sudden rips to the upside. In addition, the name has benefitted from a jump in recent trading volume to the tune of exceeding 120% beyond what we have been seeing over the larger time frame.

Earning a current market cap value of $3.3B, ACBFF has a significant war chest ($350.8M) of cash on the books, which compares with virtually no total current liabilities. ACBFF is pulling in trailing 12-month revenues of $31.1M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 201.2%. We will update the story again soon as further details emerge. 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.

Latest article

Cadence Bancorporation (CADE)’s Stock is Jumping, Here is Why

Cadence Bancorporation (CADE) shares are trading at higher $14.58 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Can We Expect More Volatility From Covanta Holding Corporation (CVA)?

Covanta Holding Corporation (CVA) shares are trading at higher $12.16 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

When Will Investors Bancorp Inc. (ISBC) Slow Down

Investors Bancorp Inc. (ISBC) shares are trading at higher $9.77 and the avg recommendation for the stock is Strong Buy, while the current analyst...

SINA Corporation (NASDAQ:SINA) is Gaining Momentum on Earnings Catalyst

SINA Corporation (SINA) shares are trading at lower $43.25 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Is the Rough Ride Over for Qorvo Inc. (QRVO)

Qorvo Inc. (QRVO) shares are trading at higher $149.20 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...