AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) plans to expand its footprint in the cannabis business with the acquisition of a 19.9% stake in Hempco Food and Fiber. The Canadian company is currently in discussions with the company’s owners as it eyes a majority stake.

Hempco Acquisition

Acquiring a controlling stake in Hempco comes at a time when the cannabis industry is experiencing rapid growth. Hempco acquisition should expand AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF)’s product portfolio and give it a competitive edge in the multibillion industry.

Hempco continues to grow at an impressive rate. The company recently posted a 136% increase in revenues, helped by a diversified product line that includes packaged food products, Hemp fiber, and nutraceuticals. A growth in demand for Hemp products has prompted the company to expand its production facility as it looks to double its current capacity of about 225,000 kg per month.

“Hempco is a rapidly expanding company with a strong and broadly diversified product offering, across a variety of health-related markets. Leveraging our relationship with extraction leaders, the potential to develop a high-volume, low-cost source for CBD-based products creates significant upside potential, making this transaction particularly attractive,” said Aurora CEO, Terry Booth.

A merger with Aurora according to Hempco CEO, Charles Holmes, will open doors for new resources needed to fuel commercial development. The executive also expects the company’s strong brand to strengthen their competitive edge in the race for market share.

Aurora Loan

In a bid to bolster Hempco prospects in the Hemp business, Aurora has agreed to loan the company $750,000 at an interest rate of 8%. The loan is to be repaid before June 8, 2019. Aurora has also agreed to participate in a private placement with Hempco for the acquisition of 10,558,676 units. Each unit is priced at $0.3075 and consists of one share and Warrant for the purchase of additional shares.

Separately, AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) has confirmed the appointment of Allan Cleiren as its new Chief Operational Officer. He joins the company with three decades of leadership experience in finance and operations management. Mr. Cleiren is tasked with the responsibility of pursuing future opportunities as well as ensuring seamless integration of domestic and international acquisitions.

AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) stock was down by 0.19% in Wednesday’s trading session to end the day at $1.61 a share.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ACBFF and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.


AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) Eyes $8 Billion Industry With Aurora Drops


AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) has started selling a new set of ingestible cannabis oils as Canada inches a step closer to legalizing the recreational use of Marijuana. Dubbed Aurora Drops, the three distinct cannabis oils will go on sale for $115 per bottle. However, clients under the company’s compassionate pricing program will be able to buy it at $80 a bottle.

Aurora Unveils Aurora Drops

The launch of the three distinct oils marks yet another milestone for the Canadian company which is turning heads in the multibillion-cannabis space. Chief Global business development officer, Neil Belot, expects Aurora Drops to significantly bolster the company’s top and bottom-line results.

“We have produced a sizeable inventory of Aurora Drops for our domestic medical client base, and will be continuing to ramp up production in order to address the strong demand we anticipate for high-quality, high-margin derivative products, manufactured under the rigorous Aurora Standards regarding processes, testing, and transparency,” said Mr. Belot.

Aurora Peloton Acquisition

The launch of Aurora drops comes on the heels of the company completing the acquisition of Peloton Pharmaceuticals, which is currently constructing a 40,000 square foot cannabis production facility. Once complete the facility will further bolster Aurora cannabis production capacity, allowing it to produce more products to meet the ever-growing demand in the market.

Peloton’s acquisition also provides Aurora with another low-cost production capacity as it continues to ramp up. The acquisition is also expected to bolster the company’s e-commerce strategy according to CEO, Terry Booth.

Canada Marijuana Legalization

The launch of Aurora Drops and acquisition of Peloton could not have come at a better time as the legalization drive continues to gather momentum. Canada could become the second country after Uruguay to legalize recreational use of Marijuana – a move that could result in the creation of an $8 billion industry. The push is already fuelling investment in the industry as companies look to accrue a substantial amount of market share on the back of growing demand for cannabis products.

According to estimates, demand Canada’s adult market could approach 600,000 kg of cannabis. This represents a significant increase from the current levels and one of the reasons why companies are investing big on production facilities. Aurora is currently constructing an 800,000 square foot marijuana production facility dubbed Aurora Sky.

CANOPY GROWTH CORP COM NPV (OTCMKTS:TWMJF) and APHRIA INC COM NPV (OTCMKTS:APHQF) are the other companies that are rivaling Aurora cannabis on acquisitions and development of cannabis production facilities.

Aurora Cannabis was unchanged in Monday trading session closing the day at $2.05 a share.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.