AURORA CANNABIS IN (OTCMKTS:ACBFF) has been perhaps the top performer in the most explosive market space on planet Earth over the past 12 months. This is a stock that has run from $0.35 to over $5/share in that time. Imagine a stock going from $35 to over $500/share. You would hear about nothing else on CNBC or Bloomberg. Almost more remarkable is the fact that everyone still seems to want to get involved even after that incredible run.
As a case in point, the company just announced that it has entered into an agreement with Canaccord Genuity Corp., pursuant to which Canaccord Genuity has agreed, on an agency basis, to arrange for purchases of up to 100,000 special warrants, at a price of $1,000 per Initial Special Warrant, for gross proceeds of up to $100 million.
AURORA CANNABIS IN (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, the Company holds approximately 9.6% of the issued shares (12.9% 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 noted above, while this stock’s run over the past year has been remarkable, it is almost more remarkable how much new institutional demand seems to be popping up out of the woodworks for new exposure here. We recently reported a private placement coming in above market pricing for shares to start November. Now we have a new deal that should continue to build out the war machine of this company’s resources.
“The size and favourable terms of this Offering are a recognition of our powerful growth and industry-leading execution, and reflect Aurora’s maturity, discipline and dominant position within the global cannabis sector,” said Terry Booth, CEO. “Upon closing of this Offering, and with the anticipated gross proceeds on conversion of our recently accelerated warrants, Aurora’s pro-forma cash position will exceed an unprecedented $340 million. We will deploy that capital carefully but strategically to further accelerate our domestic and international expansion plans, and to seize additional opportunities to differentiate Aurora from other producers.”
Traders will note 95% tacked on to share pricing for the company in the past month. The situation may be worth watching. ACBFF has a history of dramatic rallies. Furthermore, the company has registered increased average transaction volume recently, with the past month seeing just shy of 520% above the average volume levels in play in this stock over the longer term.
Now commanding a market cap of $1612.5M, ACBFF has a significant war chest ($159.8M) of cash on the books, which stands against virtually no total current liabilities. ACBFF is pulling in trailing 12-month revenues of $18.1M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 386.5%. This may be a very interesting story and we will look forward to updating it again soon. 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.