They're at it again!
Aurora Cannabis received a Health Canada Dealer's License under the Controlled Drugs and Substances Act for its EU GMP certified Aurora Mountain facility in Alberta. The new license will allow Aurora additional opportunities to produce, assemble, and sell cannabis oils and future novel, derivative products from Aurora Mountain.
Furthermore, the license provides additional opportunities to transport cannabis products for import from and export to international markets, subject to applicable regulations.
A dealer's license is also critical for expanding research and development capacity as it provides the potential for working with cannabinoids and their derivatives not covered under an ACMPR license. This will enable Aurora and its subsidiaries to drive innovation in the form of marketable intellectual property, and new value-added products.
Over the weekend, Aurora provided clarification on its statement in regard to receiving a Letter of Intent to establish one of the first medical cannabis production facilities in Malta. The Company received a Letter of Intent from Malta Enterprise for the establishment of a seed-to-pharma cannabis operation, including the construction of a hybrid production facility that will be focused predominantly on the production of oils and derivatives. Operations will be carried out by a new company, to be formed by Aurora and its local partner Cherubino, the largest pharmaceutical wholesaler in Malta with an operating history of over 100 years. Aurora will be the majority shareholder in the new venture.
Highlights of the new venture include:
- True seed-to-pharma operation, including the processing of cannabis into oils and other derivate products
- Aurora will be allocated industrial land for the development of the facility by Malta Industrial Parks
- The facility will be designed by ALPS, using the additional local expertise
- Production operations to be completed to EU GMP standards
- Aurora, through Pedanios, has worked closely with its local partner Cherubino to develop a concept for the production of medicinal cannabis that fulfills all necessary requirements in accordance with the Maltese "Production of Cannabis for Medicinal and Research Purpose Act, 2018".
- In addition to serving the domestic (Maltese) market, Malta is strategically located to serve export markets throughout Europe
Without a doubt, Aurora has been the most active participant in the current wave of industry consolidations. They have secured more supply, strengthened their patient base and ramped up global expansion. The Dealer's license is significant and will create new opportunities for Aurora. The stock – understandably – has been under pressure over the past couple of days as the MedReleaf shareholders that got Aurora stock as a result of the merger (almost 350m share of Aurora were issued) took the opportunity to take advantage of the premium and move their stock base into cash. Expect further weakness in the short term, but we are still very bullish on the long-term opportunity for Aurora