Aurora Cannabis Inc (OTCMKTS:ACBFF) has been hard at work, providing an excellent chart tutorial on the meaning of a constructive and healthy technical consolidation. Volume has remained but tapered slightly. Shares have traced out a symmetrical triangle pattern as the activity has diminished. And support has held along a rising slope well above all major moving averages. This is exactly what you want to be seeing from the stock at this point if you’re on board.
One of the reasons this stock has maintained its lofty levels in recent trade is its diversity of catalysts, drivers, and revenue streams. A pillar of this aspect is to be found in its investment portfolio. One of the company’s key holdings has been its stake in Radient Technologies Inc. To close last week, the company announced that it has completed its previously announced $12 million strategic investment in Radient, representing a strong bolstering of its exposure in the leading extraction tech firm.
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 (“ACMPR”). The Company operates a 55,200 square foot, state-of-the-art production 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 40,000 square foot production facility in Pointe-Claire, Quebec, on Montreal’s West Island.”
In addition, with its recent moves, the company now holds approximately 17.23% of the issued and outstanding common shares (and 15.87% of the issued and outstanding common shares 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 (“EU”), based in Germany.
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As discussed above, the company has maintained a strong path of synergies in its investment holdings. Radient is a perfect example. The holding has extensive value in its own right, but also offers the implication of reduced forward R&D expenditures in maintaining its market positioning.
“Our relationship with and investment in Radient are important elements in our expansion strategy considering the growing importance of cannabis extracts,” said Terry Booth, CEO of Aurora. “This partnership clearly shows how Aurora is executing on an intelligent, vertically integrated approach to capturing market share, which continues successfully to generate shareholder value.”
Denis Taschuk, CEO of Radient, added “Government proposals in regard to the new Cannabis Act allow for a much broader offering of extract-based products than was previously the case. Our technology and our capacity expansion, enabled through the investment from our key partner Aurora, positions us exceptionally well for this incredibly dynamic and rapidly growing market.”
Earning a current market cap value of $2035.6M, ACBFF has a significant war chest ($127.9M) of cash on the books, which is balanced by virtually no total current liabilities. ACBFF is pulling in trailing 12-month revenues of $23.2M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 168.6%. 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.