Aurora Cannabis Receives Licenses for Major Facilities as Analysts Upgrade Rating

Aurora Cannabis

Aurora Cannabis Inc (NYSE: ACB)(TSX: ACB) announced today that it received approval and full licenses for its key facilities in Canada. Both the long-awaited Aurora Sky as well as the MedReleaf Bradford facility are now fully approved to getting production and retailing of cannabis-related products. This development coincides with news announcements from major Wall Street analysts who have listed Aurora as one of their top buys within the cannabis sector.

Combined, the two landmark facilities would add an extra 128,000 kilogram per year of production capacity. The company has long awaited the opening of the facility, which would contribute significantly to the company’s already massive production capacity.

The rapid scale-up of our production capacity – with our Sky and Bradford facilities specifically adding over 128,000 kg per year in capacity – is resulting in significant increases in product availability across our domestic medical and consumer, as well as our international market segments, over the coming month,” said Aurora CEO Terry Booth. “Current production at Aurora Sky, with recent harvests exceeding target yields, validates our production philosophy and our investment in high-tech, highly automated facilities. MedReleaf Bradford employs best practices identified during the integration of the Aurora and MedReleaf organizations, and is consistently delivering exceptional yields and high-quality product that has resonated well in both the medical and consumer markets.

At the same time, stock analysis company Jefferies launched coverage over the cannabis sector today. A note from one of their analysts, Owen Bennet, estimated that the legal-marijuana industry would reach $50 billion in sales by the end of the next decade, but could reach as much as $130 billion in sales.

“We see a base-case conservative industry size of over $50 billion by 2029 and a realistic upside size of $130 billion on wider industry disruption,” he wrote according to The Street. “Global winners to be those that lead in both medical and recreational and have a strong U.S. position. Fears on commoditization are overdone. Expect to see further consolidation, more [mainstream consumer-goods companies] taking positions and near-term focus shifting to performance vs. headlines/capacity expectations.”

Of the nine companies that are receiving coverage from the analyst, Bennet gave “buy” ratings to five of them, with Aurora Cannabis being at the top of the list with a target share price of C$12. Other companies that the analyst expected to outperform the market included CannTrust Holdings (TSE: TRST), Emerald Health Therapeutics (CVE: EMH), Flowr Corp (CVE: FLWR), and Green Organic Dutchman (TSE: TGOD). One company that Bennet expects to decline is Cronos Group (TSE: CRON), a stock many analysts feel to be overvalued. Most surprisingly, the analysts felt HEXO Corp (TSE: HEXO) was going to underperform as opposed to explode in value as many other experts believe it will.

In response to the announcements, shares of Aurora Cannabis increased by 5 percent today.

Aurora Cannabis Company Profile

Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 500,000 kg per annum and sales and operations in 20 countries across five continents, Aurora is one of the world’s largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution. – Aurora