Despite its recent lagging behavior, Aurora Cannabis Inc (OTCMKTS:ACBFF) continues to set the gold standard for the Canadian cannabis patch. Our argument continues to be one of looking around the next corner. This is about foundation building. It’s about forming something with significant market share prepotency as the current small-market cannabis opportunity evolves into something much bigger over the next 2-5 years. Aurora continues to be the most aggressive cultivator of future market share in the space, as further evidenced by its latest move to acquire Europe’s largest producer, processor, and supplier of certified organic hemp and hemp products, Agropro UAB, as well as hemp processor and distributor Borela UAB.
According to the release, “Agropro, a hemp seed contracting and processing company, and its sister company Borela UAB, a processor and distributor of organic hulled hemp seeds, hemp seed protein, hemp flour and hemp seed oil, currently has 1,600 hectares (4,000 acres) under contract, potentially yielding more than 1,000,000 kg of organic hemp with additional contracts available to expand to more than 3,000 hectares across Lithuania, Latvia, Estonia, and Poland.”
Aurora Cannabis Inc (OTCMKTS:ACBFF), through Aurora Cannabis Enterprises Inc, trumpets itself as “one of the world’s largest and leading cannabis companies” and a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR).
The Company operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta, known as Aurora Mountain, 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 to the Company’s rapid organic growth and strong execution on strategic M&A, which to date includes 15 companies – MedReleaf, CanvasRX, Peloton Pharmaceutical, Aurora Deutschland (formerly Pedanios), H2 Biopharma, Urban Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics, Anandia Labs, HotHouse Consulting, Agropro, Borela, and the pending acquisition of ICC Labs – Aurora is distinguished by its reputation as a partner of choice and employer of choice in the global cannabis sector.
The company has invested in and established strategic partnerships with a range of leading innovators, including: The Green Organic Dutchman Holdings Ltd. (TSX: TGOD), Radient Technologies Inc. (TSXV: RTI), Hempco Food and Fiber Inc. (TSXV: HEMP), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), Namaste Technologies Inc. (TSXV: N), Evio Beauty Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC: CTTH), and Alcanna Inc. (TSX: CLIQ).
Aurora’s common shares trade on TSX under the symbol “ACB”.and on the OTCQX under the symbol “ACBFF”
According to company materials, “Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 500,000 kg per year and sales and operations in 18 countries across five continents, Aurora is one of the world’s largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution.”
Find out when $ACBFF reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
“Agropro’s position as Europe’s leading producer of premium organic hemp along with the significant and previously unutilized CBD production from the large quantities of currently discarded biomass, makes this an accretive acquisition and one that positions Aurora well to become a global leader in organic CBD-based wellness products,” said Terry Booth, CEO.
We’ve witnessed 37% added to share values of the company over the past month of action, but this action is running counter to the larger trend in the name. What’s more, the company has witnessed a pop in interest, as transaction volume levels have recently pushed 160% over what the stock has registered over the longer term.
Skirmantas Nikstele Co-Founder & Chief Executive Officer of Agropro, added, “As the largest producer, processor, and supplier of organic hemp products in Europe, we have developed a strong reputation for quality and consistency with our customers across the globe. Through Aurora, we gain access to a wider distribution network, as well as an access to industry-leading science to help ramp up production, while enhancing margins through the introduction of new products, proven production techniques, and robust genetics.”
Currently trading at a market capitalization of $6.22B, ACBFF has a significant war chest ($231M) of cash on the books, which must be weighed relative to about $56.1M in total current liabilities. 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.