The battle with the $5/share support level continues for Aurora Cannabis Inc (OTCMKTS:ACBFF). As we will discuss further below, we are seeing tapering trading volume during this leg of the decline, which is an important signal that we may not be seeing selling by the more important shareholders carrying stakes in the company. In addition, we continue to see this company roll out new catalysts to stir the story.
As a case in point, the company just announced this week that it has obtained a Health Canada Dealer’s License under the Controlled Drugs and Substances Act for its EU GMP certified Aurora Mountain facility in Alberta. According to the release, “The new license will allow Aurora additional opportunities to produce, assemble, and sell cannabis oils and future novel, derivative products from Aurora Mountain, Furthermore, the license provides additional opportunities to transport cannabis products for import from and export to international markets, subject to applicable regulations.”
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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Recent action has seen just under -10% stripped out of share pricing for the stock in the past week. In addition, this action has been accompanied by a minor drop in trading volume, as might be expected by a pullback not representing major distribution by larger holders of the stock. Given the upcoming move to legalize across Canada on a recreational level, that is not surprising.
“Aurora Mountain is our third facility to be granted a Dealer’s License by Health Canada, and this milestone is fundamental to bolstering our supply chain across Canada and around the world,” said Terry Booth, CEO of Aurora. “Being able to more freely transport and export cannabis oils, derivatives and concentrates allows us to develop new products that respond to market demand in a variety of regulatory frameworks in different countries.”
Currently trading at a market capitalization of $3B, ACBFF has a significant war chest ($231M) of cash on the books, which compares with 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%. We will update the story again soon as developments transpire. 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.