Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB.TO) got a enhance from Overall health Canada these days, with news that will support the organization scale up production.
Two Aurora facilities totally licensed
The Edmonton-primarily based organization announced this morning that Overall health Canada awarded complete licensing to its Aurora Sky and MedReleaf Bradford facilities.
Facilities to generate and sell cannabis
The Edmonton and Bradford facilities are now licensed to generate and sell cannabis and its derivative items.
According to Aurora’s CEO, Terry Booth, the enhance to the company’s production capacity will be considerable.
“The Sky and Bradford facilities particularly add more than 128,000 kg per year in capacity.” That, he says, will outcome in “significant increases in item availability across our domestic healthcare and customer.”
He added that this will add to provide for the international marketplace segments as effectively in the coming months.
Booth credits Aurora’s production prowess for the company’s results at its Aurora Sky facility.
“Current production at Aurora Sky, with current harvests exceeding target yields, validates our production philosophy and our investment in higher-tech, hugely automated facilities.”
He continued, “MedReleaf Bradford employs ideal practices identified throughout the integration of the Aurora and MedReleaf organizations, and is regularly delivering exceptional yields and higher-top quality item [to]… healthcare and customer markets.”
Flying friendly skies
Aurora is identified for its expense efficiency. The Aurora Sky facility was made to generate higher caliber, constant cannabis at a low expense.
The facility is 800,000 square feet, utilizes state-of-the-art technologies, and focuses on automation. The purpose is impressive: significantly less than a buck to generate a gram of weed.
Following this morning’s news, Aurora expects the plant to be completely seeded by subsequent month.
Rooms to develop
The MedReleaf Bradford facility is equally engineered to impress. At 210,000 square feet, Aurora constructed the higher-tech facility to EU GMP specifications. 17 separately climate-controlled plant rooms home hang-dried, hand-manicured cannabis.
The organization predicts early April 2019 to have the facility totally planted. It expects to cultivate 28,000 kg of marijuana annually from the facility.
Is Aurora a obtain?
Aurora’s personal estimates prime 500,000 kg annual production. Even so, the organization is in an exceptional position to beat competitors at its peak production.
Think about its organic development with Aurora Sky and Aurora Sun facilities, its partnership with Aurora Nordic, and its acquisitions like ICC Labs, CanniMed and MedReleaf. These facilities may well push production above estimates, and hearty provide offers could comply with.
Nonetheless, investors will have to also preserve in thoughts that the company’s outstanding shares went from 16 million to 998.five million lately. Though the acquisitions bring the organization worth, that dilution hurts shareholders.
Meanwhile, Overall health Canada’s licensing price, as effectively as provide chain bottlenecks are nonetheless a concern for producers there. On the company’s current earnings contact, Aurora’s Chief Corporate Officer Cam Battley stated “we need to have much better retail infrastructure across the nation to see the level of sale every person is anticipating. It will take a couple extra quarters.”
Due to the fact legalization in Canada, Aurora’s stock has declined pretty much 35 %, following on a pre-legalization sector-wide enhance for pot stocks. At present, the stock is trading at $9.46, up $.32 from yesterday’s close.