Aurora Cannabis (ACB.TO) (ACBFF) has been one of the hottest cannabis investments over the last month and the shares are up more than 150% during this time.
While this rally seems significant, we remain bullish on Aurora and favorable on the long-term outlook. The Canadian medical marijuana producer has been nothing short of an execution story and the company continues to execute and work to create value for its shareholders.
Today, we have highlighted what we believe are Aurora’s 10 most significant investments and acquisitions.
- Last week, Aurora Cannabis made a formal offer to acquire CanniMed Therapeutics (CMED.TO) for shares of common stock. The company is acquiring CanniMed for $24 a share. If approved, CanniMed shareholders will receive 4.52586207 shares of Aurora for each share of CanniMed. The offer will remain open for acceptance until March 9, 2018.
- Earlier this month, Aurora signed a definitive agreement for the acquisition of Larssen Ltd. The company anticipates completing the acquisition within the coming weeks. Larssen, a Canadian company that has set the industry standard in high-tech, automated, environmentally controlled greenhouses for over 30 years, has consulted on the design, engineering, and construction oversight of many of the world’s most advanced greenhouse cultivation facilities. Larssen has been involved with over 1,000 projects around the globe.
- Aurora Cannabis is working to become a major player in the cannabidiol (CBD) market. Earlier this month, Aurora entered a subscription and an option agreement with Hempco Food and Fiber Inc. (HEMP.V) and Hempco founders, which, upon exercise, would bring Aurora’s total ownership interest in Hempco to over 50% on a fully diluted basis. Hempco’s position within the hemp based nutrition space makes it a strategic acquisition and partnership for Aurora. Earlier this month, the companies completed a non-brokered private placement for gross proceeds of $3.2 million. Hempco issued 10,558,676 units, at $0.3075 per unit, to Aurora.
- Earlier this quarter, Aurora entered an exclusive hardware supply agreement for the Canadian market with Namaste Technologies whereby Aurora, through its website and mobile application, offers a specially curated selection of industry-leading vaporizers sourced through Namaste. Today, Aurora and Namaste expanded their partnership and signed a hardware supply agreement whereby Namaste will be the first third-party distributor to sell Aurora’s subsidiary home cultivation systems and accessories through its online platform.
- In May, Aurora acquired Berlin-based Pedanios, Germany’s leading medical cannabis distributor. In September, Aurora shipped 50 kg of dried cannabis to Germany. Upon delivery to Pedanios, the product will be distributed to a network of more than 1,500 pharmacies across Germany, which represents the largest single federally-legal medical cannabis market in the world. During the last quarter, Aurora generated $1.2 million in revenues through the sale of medical cannabis in Germany.
- Earlier this month, Aurora and Radient Technologies (RTI.V) signed an agreement, pursuant to which Radient will perform certain services for Aurora. We are favorable on how this partnership will benefit and expand Aurora’s cannabis oil business. Studies have shown that Radient’s proprietary technology can process cannabis oil faster and more efficiently. The data indicated that it could process 1,500 kg per day, significantly higher than conventional methods. As cannabis oil and smokeless products continue to take market share, Aurora is well positioned to benefit from this.
- In March, Aurora acquired 19.9% of Cann Group (ASX: CAN) and became the cornerstone investor ahead of its IPO. In June, Cann Group became the first Australian company to be licensed by the Office of Drug Control for commercial medical cannabis cultivation and production.
- Last year, Aurora acquired CanvasRx, one of the largest medical cannabis patient outreach and counseling service in Canada. CanvasRx, which now operates 25 facilities nationwide, has more than 31,900 registered patients. Over 8,900 medical doctors across Canada have referred patients to CanvasRx or its affiliated medical clinics.
- Earlier this year, Aurora acquired Peloton Pharmaceuticals Inc., a late-stage ACMPR-applicant, out of bankruptcy protection. In 2014, Peloton received a ready to build letter from Health Canada for a 40,000 square foot cannabis production facility in Pointe Claire, Quebec. Aurora has completed the construction upgrades at the facility and received a cultivation license from Health Canada for purpose-built indoor facility. in the first quarter of 2018, Aurora anticipates shipping genetics and completing the first harvest.
- Last week, Aurora Cannabis entered a binding share purchase agreement to acquire H2 Biopharma, a late stage ACMPR applicant based in Lachute, Quebec. The acquisition will be the fourth production facility in Canada (second in Quebec). H2 is currently completing a 48,000 sq. ft. cannabis production facility (expected before the end of 2017) that is projected to produce approximately 4,500 kilograms of cannabis per year. The property has access to ample low-cost power, water and infrastructure to support a very significant capacity expansion.
Source: Technical 420