AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) is key player in the Canadian cannabis production market. ACBFF stock has been locking in a lateral consolidation pattern for the past 6 months. The action has been corrective of late, but that tone has been potentially interrupted by the company’s release if its recent financial results for the quarter ended March 31, 2017 (fiscal Q3 2017).
According to the release, the company reported revenues of $5.2 million as compared to $0.2 million for Q3 2016. The company notes that Q3 2017 revenues reflect 33.3% sequential growth over Q2 2017, driven both by increased patient numbers and higher revenue per patient. This equates to a current sales pace that exceeds $2.0 million per month. “Aurora continues to execute well on all aspects of its growth strategy, including the construction of a state-of-the-art 800,000 square foot production facility, national and international expansion, and continued investments in technology, innovation, partnerships, customer service, and sales and marketing.”
AURORA CANNABIS IN COM NPV (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.
Aurora’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 the 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 (ACMPR) and operates a 55,200 square foot, expandable, state-of-the-art production facility in Mountain View County, Alberta, Canada. Aurora trades on the TSX Venture Exchange under the symbol “ACB”.”
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We have focused on this company as perhaps the one key player among Canadian cannabis producers that has managed to lay down a path of diversification that may give ACBFF stock a true edge over other major players in the space. The move that we find most interesting is the addition of a co-product to begin sales of ingestible cannabis oils.
“The tabling this spring of legislation to legalize adult consumer use of cannabis validates our aggressive growth and expansion strategy,” said Terry Booth , CEO. “The progress of construction and timelines to complete our 800,000 square foot Aurora Sky facility position us exceptionally well for the anticipated start of adult consumer sales by July 2018 .”
Booth continued, “Our premium cannabis products continue to resonate strongly with the rapidly growing medical market. Following an exceptional patient growth rate for the first twelve months of commercial operations, demand continues to exceed available supply. We have pro-actively managed new patient registrations in Q3 2017 to balance demand with our steadily increasing production capacity to ensure we protect our position as a premium supplier. As our capacity increases and more product becomes consistently available, we anticipate patient acquisition will resume its steady growth. We are also very excited to have commenced cannabis oil sales shortly after the quarter ended. They have gotten off to a brisk start, and we expect these to be a material contributor to revenues, enabling us to capture significant share in this fast growing segment of the cannabis market.”
Booth concluded, “Going forward, with one of the strongest cash balances in the industry, we will be able to execute on our aggressive expansion plans, both domestically and internationally, as we have done successfully with the acquisition of Peloton and our participation in the IPO of Australia’s first licensed cannabis company, Cann Group. Finally, as we are maturing as an organization, we have added considerable strength to the management team with the appointments of a CFO and Director of Québec Affairs. These new team members will add important additional senior executive capacity as we pursue our goals and execute our growth strategy.”
Earning a current market cap value of $539.1M, ACBFF has a significant war chest ($14.8M) of cash on the books, which must be weighed relative to about $1.7M in total current liabilities. ACBFF is pulling in trailing 12-month revenues of $8.4M. In addition, the company is seeing recent top line growth, with sequential quarterly revenues growing at 26.5%. This may be a very interesting story and we will look forward to updating it again soon. For continuing coverage on shares of ACBFF stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
