Canadian cannabis giant Aurora Cannabis (TSX:ACB; OTCMKTS:ACBFF) started the month of October off on a high note thanks to its announcement on Monday (October 2) that it had acquired 100 percent interest of BC Northern Lights Enterprises and Urban Cultivator.
According to the company’s press release, BC Northern Lights and Urban Cultivator both expect to generate revenues totaling of more than $5 million each in their fiscal years, ending later this month.
“These transactions are an important step in Aurora’s strategy to serve the home gardening market in Canada for patients who choose to grow their own medical cannabis, and ultimately for adult consumers who choose to grow their own after Canada’s federal government legalizes adult usage,” Neil Belot, chief global business development officer of Aurora Cannabis said in the release.
Legalization of recreational use of marijuana is slated for July 1, 2018.
Terry Booth, CEO of Aurora Cannabis, echoed similar sentiments, stating that it puts the company in a good position to “capitalize on the opportunity in a distinct and rapidly growing segment of the market.”
“These transactions are an important step in Aurora’s strategy to serve the home gardening market in Canada for patients who choose to grow their own medical cannabis, and ultimately for adult consumers who choose to grow their own after Canada’s federal government legalizes adult usage,” Booth added.
Following Monday’s announcement, shares of Aurora Cannabis have increased 4.32 percent to reach $2.90 at the close on Wednesday (October 5).
All that being said, there have, of course, been other contributing factors to Aurora’s recent share price boom. In late September, the company announced its Q4 and full financial 2017 results, noting that August was a “record month” with gross revenues exceeding $3.1 million in medical cannabis sales.
The company also stated that over 3,500 patients registered since the fiscal year end and that it surpassed over 20,000 active and pending registered patients.
Because of the company’s recent highlights, analysts are bullish on Aurora Cannabis–at the moment–including Patrick Brik of Profit Confidential.
Brik wrote that he is currently watching Aurora for “a very particular reason.”
“[The] stock really stands to benefit now that the government has made strides to create a recreational market for its product,” he said. “As a result, Aurora Cannabis stock—and this entire sector—has caught a bid, and speculation is beginning to ramp up once again.”
Shares of Aurora Cannabis on the OTCMKTS exchange have risen 36.04 percent to $2.34 as of 4:00 p.m. EST on Wednesday, while its share price on the TSX has risen 6.23 percent since being bumped up to the exchange on July 25.
Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.