AURORA CANNABIS IN (OTCMKTS:ACBFF) is one of the clear leadership players in the booming “big cannabis” industry in Canada. The company is trading in a new world this week: a world that contains serious investment potential from major global large caps following serious due diligence from Wall Street investment banking teams. That’s a very different world from the backwater, speculative, OTC-only kind of environment that characterized the state of play for this stock, and stocks just like it, as of about a year ago.
The stock gapped up on the news earlier this week on Monday’s announcement by Constellation Brands (STZ) that it was making a major investment in the cannabis patch — taking a minority stake in CANOPY GROWTH CORP COM NPV (OTCMKTS:TWMJF). But the company is also piling up its own catalysts, recently receiving its cultivation license from Health Canada for its 40,000 square foot, yield-optimized indoor production facility in Pointe-Claire, Quebec and then, nearly simultaneously, announcing the appointment of Darryl Vleeming as its new Chief Information Officer.
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, based in Germany.”
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As noted above, the stock is one of the few cannabis plays that clearly appears tailor-made for a deep-dive due diligence process from large-cap minority-stake investment possibilities. It continues to pile up catalysts, with the new Health Canada license seemingly most important. But we wouldn’t overlook a new CIO appointment either.
According to the company’s release this week, “Mr. Vleeming comes to Aurora with over 20 years of experience in Senior IT leadership, project delivery, and IT strategic planning at publicly traded international corporations, with a specific focus on driving business value. Prior to joining Aurora, Mr. Vleeming spent eight years, lastly as Vice President, IS and Chief Information Officer, at Capital Power Corporation, a $2.5 billion, TSX listed independent power producer. Among other responsibilities, Mr. Vleeming was in charge of the division running the corporation’s mission-critical IT systems, general IT asset management, as well as development of the corporation’s strategic technology vision to drive competitive differentiation. Prior to Capital Power, Mr. Vleeming was Manager of Systems Development at EPCOR, one of Canada’s top providers of energy and energy-related services and products in Alberta, Ontario, and the United States.”
Recent action has seen 5% piled on for shareholders of the listing during the trailing week. This is emblematic of the stock. ACBFF has a track record that includes a number of dramatic bounces. What’s more, the name has registered increased average transaction volume recently, with the past month seeing 57% above its longer-run average levels.
Earning a current market cap value of $887.7M, ACBFF has a significant war chest ($159.8M) of cash on the books, which is balanced by 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 is an exciting story, and we look forward to a follow-up chapter as events transpire. 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.