Are We Seeing Accumulation in Aurora Cannabis Inc (OTCMKTS:ACBFF)?

Are We Seeing Accumulation in Aurora Cannabis Inc (OTCMKTS:ACBFF)?


Key levels are in play all over the cannabis space as support right now, with the $5/share level in Aurora Cannabis Inc (OTCMKTS:ACBFF) being one of the most prominent. The level is under fire, but may represent an area where large players are willing to sit with a truck and a lunchbox and go to work accumulating shares. To augment that case, the company just provided further clarification on its statement in regard to receiving a Letter of Intent to establish one of the first medical cannabis production facilities in Malta.

According to the release, “The Company received a Letter of Intent from Malta Enterprise for the establishment of a seed-to-pharma cannabis operation, including the construction of a hybrid production facility that will be focused predominantly on the production of oils and derivatives. Operations will be carried out by a new company, to be formed by Aurora and its local partner Cherubino Ltd., the largest pharmaceutical wholesaler in Malta with an operating history of over 100 years. Aurora will be the majority shareholder in the new venture.”

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 been relatively flat over the past week. In addition, the listing has registered increased average transaction volume recently, with the past month seeing 14% above its longer-run average levels.

“Aurora continues to be the industry leader in the EU by being one of the first producers to have been granted a letter of intent for the production of cannabis for medicinal and research purpose in Malta,” said Neil Belot, Chief Global Business Development Officer. “Being able to cover the entire cannabis value chain from seed or clone to sales, including the production of extracts and other derivatives, positions us well to serve multiple markets with our high-margin product. We are grateful to Malta Enterprise for their trust in Aurora. This letter of intent is also very much the result of our close collaboration with our local partner Cherubino, whose reputation and standing in Malta was instrumental in establishing our local presence. We look forward to establishing a thriving business, create significant employment, and serve the Maltese and EU population with a broad range of high-quality cannabis and cannabis-based products.”

Now commanding a market cap of $2.83B, 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%. 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.

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