Aurora Cannabis (ACB.TO) (ACBFF) is one step closer to becoming a major player in the cannabidiol (CBD) market.
Today, Hempco Food and Fiber Inc. (HEMP.V) initiated the process towards securing the vote for approval of the proposed strategic investment by Aurora Cannabis.
Hempco Initiates Process for Aurora to Become Majority Owner
Once Aurora exercises its option to purchase shares from Hempco’s co-founders, the licensed medical marijuana producer will have a controlling interest in Hempco. We expect this process to be completed quickly due to the strategic benefits that Aurora provides.
Hempco’s Board of Directors said that it wants to get this process completed quickly so the company may complete its financing. In the coming months, Hempco will launch a new product line aimed at the animal feed supplement market for horse and dogs.
Hempco intends to launch its new product line, PRAISE, for the dog and horse food supplements market in the next 60 days.
Aurora to Capitalize on a Strategic Opportunity
Hempco’s position within the hemp based nutrition space makes it a strategic acquisition and partnership for Aurora. Industrial hemp grown under contract to Hempco contains efficient extractable quantities of cannabidiol (CBD).
The market for CBDs in the form of capsules, oils, and topicals is expected to show significant growth, and Aurora considers the proposed transaction with Hempco to be a strategic initiative to enable market share dominance in this attractive segment.
Through Aurora’s relationship with Radient Technologies (RTI.V), the licensed medical marijuana producer has access to technology that is capable of producing CBD-based products at large scale, thus providing the Company with a considerable competitive advantage in addressing this growing market when CBD extraction from hemp is allowed.
An Attractive Long-Term Opportunity
Aurora Cannabis has continued to execute on its business plan and we are favorable on thecompany’s long-term outlook. The shares have come off their highs and we are monitoring therecent pullback.
Aurora’s market cap is north of $1 billion and has been able to grow at industry leading ratesthrough organic and inorganic growth initiatives. We continue to view Aurora as one of the bestcannabis investment opportunities and believe this is a stock to watch.
Source: Technical 420