Aurora Cannabis In Com NPV (OTCMKTS:ACBFF) is (to put it simply) a huge Canadian cannabis company that’s looking to re-test new highs. While the momentum around cannabis stocks hasn’t been as strong in 2017 as it was in 2016, now could be the time to get in on solid, high-growth cannabis companies that are taking all the right steps to become leaders in the marijuana industry. One of those companies happens to be Aurora Cannabis In Com NPV (OTCMKTS: ACBFF). After a red-hot 2016, when shares rocketed to as high as $2.96 before the U.S. presidential election, shares have been unable to regain their former momentum in 2017.
Shares of Aurora Cannabis In Com NPV (OTCMKTS: ACBFF) are currently trading at $1.64, giving the company a total market capitalization of $501.61 million. Over the most recent 52-week period, shares have traded as low as $0.00 and as high as $2.96. With its nearly half-billion-dollar market cap, ACBFF is one of the largest publicly traded players in the Canadian cannabis sector.
For investors, the key is to determine a fair valuation for the company. Ahead of the November election, shares nearly reached the $3 level on massive speculation about future growth in both the Canadian and U.S. cannabis markets. The U.S. market, for example, had formerly been limited to both Colorado and Washington State. But now California and Nevada have legalized marijuana, and that should drive demand for marijuana off the charts.
Until recently, that has been the growth story that ACBFF has been telling investors. The company is a licensed producer of medical marijuana, with a more than 55,000 square foot production facility located in Alberta, Canada. Aurora is one of only 26 licensed producers in Canada – and the only one in Alberta.
But that’s really just the tip of the iceberg for Aurora. That’s because the company is working on some really outstanding growth opportunities, all of which could really catalyze future market growth. One of these is the construction of a truly massive 800,000 square foot “Aurora Sky” cannabis production facility in Edmonton. When the facility is complete, it will be larger than 16 football fields, and it will be largely automated, meaning that Aurora could become one of the most dominant producers in the world, not just in Canada.
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And the construction of this facility near Edmonton International Airport is no coincidence. That’s because the company is working on plans to distribute medical marijuana to the EU. For example, at the end of May, Aurora confirmed details about the acquisition of a German company, Pedanois GmbH, which is a leading wholesale importer, exporter and distributor of medical cannabis in the EU. In January 2017, the German parliament passed a major new law on medical cannabis, and now it looks like Aurora is going to get in on the growth. Pedanois, for example, has distribution agreements in place with 750 German pharmacies.
And there’s one more major catalyst in place for future growth, and that’s a joint R&D partnership with Radient Technologies. The two companies recently announced a successful venture to improve the extraction of cannabinoids from dried cannabis.
Going forward, it looks like Aurora Cannabis has a very clear business strategy: continue to ramp up production, branch out into cannabis-derived products (such as cannabinoid oils) that require advanced extraction methods, and continue to sign up new patients for medical marijuana.
What’s confusing in all this, of course, is that ACBFF is struggling to regain its footing in the stock market after a spectacular 2016. Even with all these new growth initiatives, shares are trading at just $1.76. In 2017, shares are actually down 0.58% on a YTD basis. In short, not a single one of Aurora’s major growth initiatives has moved the needle. And that’s even as the company’s balance sheet looks to be in good shape.
Maybe investors think that ACBFF has run too far, too fast. In 2016, for example, shares exploded from around the $0.30 point in August 2016 to nearly $3.00 before the election. That’s a 10-fold increase within a very short period of time. But as the Aurora growth story starts to take hold, and as investors see that ACBFF has positioned itself well for the expansion of the cannabis market in Canada, the U.S. and the EU, this is a stock that could take off like a rocket at a moment’s notice. For more news on Aurora Cannabis and other fast-moving microcap stocks, please subscribe to FinanceRegistrar.com below.