Aurora Cannabis Inc. (OTCMKTS: ACBFF) Turns To Acquisitions And Partnerships To Accelerate Growth
Aurora Cannabis Inc. (OTCMKTS: ACBFF) has not had the best of starts to a new year. Its stock has been under immense selling pressure, a move that has seen its tank from the $12.30 handle to current trading levels. However, the steep pullback cannot in any way be attributed to deteriorating underperformance.
The industry has been under pressure for the better part of the year. However, things are starting to look up, presenting a unique opportunity to buy stocks with high growth potential.
Aurora Cannabis should be an exciting pick for investors looking to gain some exposure in the fast emerging marketplace. The stock appears to have found support at the $6 a share handle, from where it is trying to make a comeback as investor confidence in the space starts to tick higher.
Aurora Cannabis is one of the big players in Canada’s legal cannabis business. The company produces and distributes medical marijuana products in Canada. Its products line consists of dried cannabis and cannabis oil.
Aurora Acquisition Drive
After starting with one flagship project in the name of Aurora Sky, Aurora Cannabis has sought to expand its empire in pursuit of growth opportunities in the sector. Acquisitions and partnerships have come into play, further strengthening the company’s competitive edge in the industry.
Early this year, the company formed a joint venture with Danish tomato and pepper producer Alfred Pedersen & Son for the sale of Cannabis. Pursuant to the agreement, Aurora Nordic facility should come to life, capable of producing 120,000 kilograms a year. The joint venture paves the way for the company to target customers in Europe, in countries that have legalized medicinal cannabis.
Aurora Cannabis has also broadened its product portfolio with the acquisition of Saskatchewan-based CanniMed. The acquisition adds about 19,000 kilograms of fully-funded capacity into Aurora Coffers.
The company is also pursuing sales opportunities in addition to strengthening its production capacity. The signing of a final agreement with Société des Alcools du Québec should low the company to supply a minimum of 5,000 kg of cannabis per annum to Quebec adult consumer market, once it comes online.
“With two facilities, as well as a supply agreement with the Green Organic Dutchman, we have a strong local presence, which we believe will contribute to increased visibility in this important market. We look forward to establishing the Aurora Standard as the benchmark for quality and customer service in Canada’s second most populous province,” stated Terry Booth, CEO.
Acquisitions and partnerships all but position Aurora Cannabis in a strategic position, in pursuit of revenue opportunities in the fast-growing cannabis industry. The stock is thus expected to continue climbing as investors take note of the emerging opportunities for growth.