The Tape Appears Sturdy for Shares of Aurora Cannabis Inc (OTCMKTS:ACBFF)

The Tape Appears Sturdy for Shares of Aurora Cannabis Inc (OTCMKTS:ACBFF)


Shares of Aurora Cannabis Inc (OTCMKTS:ACBFF) have been trading in a consolidative range as we draw ever nearer to the magic moment when the lid is officially lifted off the party bottle in Canada this fall. Note that shares of the stock are trading a bit higher over the past two months, which is important given the extreme number of strategic commitments the company has made over that period. Traders call this type of action the tape “absorbing” the new obligations. It’s often a good sign.

In addition, the company just made a few key announcements in an important operational update. Namely, after eight months after receiving its cultivation license, the Aurora Vie production facility in Pointe-Claire, Quebec, has been granted its Health Canada sales license. That announcement came in concert with the company’s revelation that it had just completed its first full harvest at Aurora Sky, “the world’s most technologically advanced cannabis production facility”.

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 a 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 chart shows basically flat action during the past week in terms of shareholder gains in the stock.

The first harvest completed at Aurora Sky is actually a pretty big deal. The company noted that a second harvest would take place a couple weeks later.

According to the release, “installation of most automation systems, as well as irrigation and climate control is complete, and the facility’s critical systems are being commissioned. The Company anticipates planting of all bays in the coming months, ensuring ample dried flower and extracted product supply in advance of consumer legalization in October, 2018, with the facility ramping up to full capacity of more than 8,000 kg each month by the beginning of 2019. Consequently, the Company expects a dramatic increase in product availability across all three market segments: Canadian medical; Canadian adult consumer use; and international medical. With a total footprint exceeding 800,000 sq. ft., Aurora Sky is expected to produce more than 100,000 kg per year of high-quality cannabis.”

Earning a current market cap value of right around $4B, ACBFF has a significant war chest ($231M) of cash on the books, which stands against about $2.6M in total current liabilities. One should also note that debt has been growing over recent quarters. ACBFF is pulling in trailing 12-month revenues of $42M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 211.1%. You can bet we will update this one again as new information comes into view. 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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