Aurora Cannabis continues to grow

Aurora Cannabis James Alexander Michie

Source: newcannabisventures

Aurora Cannabis Inc. is a Canadian licensed cannabis producer, headquartered in Edmonton. It trades on the Toronto Stock Exchange as ACB. As of late September 2018, Aurora Cannabis had eight licensed production facilities, five sales licenses, and operations in 18 countries. Aurora is the second largest cannabis company in the world by market capitalization, after Canopy Growth Corporation. The company began trading on the NYSE on October 23rd, 2018.

The company started 2018 by announcing that their liquid assets surpassed $500 million, $320 million of which was cash. On top of that, they also announced a bought deal which brought them another $200 million in cash.

Aurora worked really hard on improving their production capacity, not only by building new facilities but also by buying out their competition. The first thing to happen on this front was the licensing of Aurora Sky in January, which had its first harvest in July. After that Aurora announced the 1.2 million sq.ft Aurora Sun facility in April, and received the sales license for the Aurora Vie facility. The company managed to ship clones to its Aurora Nordic facility in Denmark in August, and by doing so populated the whole facility with plants.

2 great years approaching for Aurora Cannabis

It is already notorious that Aurora Cannabis (ACB) has rapidly increased production in recent months. And it is that since it has gone from 70 kilograms per year to 150 kilograms per year before the end of the first half of 2019. In fact, management in its latest earnings report assured that it is ready to increase production to about 500 kilograms per year at the beginning of 2020.

That being the case, within a year, Aurora production levels will easily triple. This, depending on the previous baseline that you want to use, Aurora will increase the production levels of kilograms at least more than 3 times a year. Therefore, surely Aurora Cannabis will not have negative surprises in the coming years.

It should be noted that Aurora Cannabis still has the potential to increase that, with its current holdings, by an additional 200 to 300 kilograms. Only on the revenue side of the business, this points to very high growth levels in the next two years. However, it is necessary to clarify that reaching the level of 500 kilograms per year does not mean that it will have a significant impact on the company immediately. In fact, at least he would have to sell it throughout the year to enjoy all the benefits.

However, there is always the possibility that the company does not achieve its goal. However, there is currently nothing that can suggest that the company will not be able to reach 500 kilograms in annual production in approximately one year.

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Source: Gary Bourgeault | Seeking Alpha

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