We’re looking in on AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) again today as we very often do here on Street Register. For some time it has been one of our go to plays in the Canadian cannabis sector, and for very good reason; the company is one of those that is constantly pushing the envelope in terms of strategic growth and expansion.
It is for that reason that we wanted to address the latest news from Aurora without delay. The company has made a huge announcement regarding a new planned cannabis cultivation facility that is even larger than ‘Aurora Sky’, the 800,000 square foot space near the Edmonton airport.
AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) is acquiring approximately 71 acres of land in Medicine Hat, Alberta, where the Company intends shortly to commence construction on a new high-technology hybrid greenhouse cannabis production facility. To this end, the Company has signed a memorandum of understanding with the City of Medicine Hat, concerning terms and a general understanding of potential transactions, including a prospective 10-year, 42 MW energy supply agreement.
The new facility, to be designed and engineered by the Company’s wholly owned Aurora Larssen Projects Inc. division, will be named “Aurora Sun” in recognition of Medicine Hat’s status as the sunniest city in Canada, with more than 2,500 hours of sunshine per year. At 1,200,000 square foot, or over 21 football fields, the footprint of Aurora Sun will be 50% larger than Aurora’s Sky.
To date, Aurora has approximately 280,000 kg per year of funded capacity. With the addition of Aurora Sun, total capacity will increase to over 430,000 kg per year. In addition to the domestic medical cannabis market, in which the Company already services approximately 45,000 patients, the new facility is intended to serve both the pending legal Canadian adult consumer market, and the quickly expanding international market.
The global market is experiencing a massive excess of demand over supply for legal, regulated medical cannabis, with extremely rapid growth. This situation is expected to continue for a number of years, and only a small number of producers around the world have the experience in regulated cultivation, the production capacity and the access to capital to successfully exploit this opportunity. Aurora, currently exporting to Germany and Italy, with a combined population in excess of 140 million, intends to supply additional European medical cannabis markets now coming online, and will devote a significant proportion of its increasing production capacity to export the Company’s high-quality cannabis products into these undersupplied high-margin markets.(Source: Canada Newswire)
The Canadian cannabis market, in the next few years, is likely to be worth anywhere from five to twenty billion dollars a year. Not only has Aurora been preparing well for the recreational cannabis market which kicks off in July, but now we’re also seeing a continued push toward growing even bigger. Its latest project puts the company’s potential annual cannabis production capability at roughly one million pounds! It’s that driving initiative that has made this company one of our favorites in the Canadian marijuana space for a very long time. We’ll be sure to continue looking out for key events. We’ll stay up on any further developments with ACBFF and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free small cap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in ACBFF stock, short or long.