Why I Own Aurora ACB.T
I originally bought ACB.T just because they were another canna stock. It was a shot in the dark. My first purchase was at .48 for 4400 shares. It was a 2,000 dollar gamble at the time.
Shortly after I bought, they announced their 800,000 sq ft expansion plans. The stock pretty much doubled right after that. I was now hooked.
Aurora was the first licensed producer in Alberta, they started overnight shipping to patients in Calgary and Edmonton. Also the first company with an APP for people to order from.
One issue with ACB.T is the huge amount of shares they have, which is why their share price is so low. They have about 370 million shares out. I believe one of the reason they have so many shares out is because they raised a lot of capital early on, which has allowed them to get ahead of the game. So it’s not that bad, it just seems to take a lot longer for the share price to climb, but you can also buy more shares so it pretty much evens out.
Aurora trades the “big board” or the Toronto Stock Exchange a well respected exchange, originally ACB.T was on the CSE then the TSX-V and then finally moved up to the TSX. The TSX has stricter rules making the companies more trust worthy then one on the CSE. This opens up more investment avenues as some institutional investors will only invest in companies on the TSX.
You can see all my purchases of ACB.T on my portfolio page.
Aurora is building their massive new green house at Edmonton International Airport, a 800,000 sq ft facility. There are now a few companies bundling into million sq ft range. Aurora is basically in the top five when it comes to square footage.
Aurora also bought a bankrupt license applicant working on a 40,000 sq ft grow facility. This was a great move, spending about 7 million. Compare this to pre licensed companies that are trading with 25-35 million market caps.
International Expansion Plans
Germany– Auroa bought Pedanios, the leading importer of MJ into the European Union. They have already shipped 500kg to Germany.
Auroa has signed deals with WMD, Supreme Pharma to supply product.
Aurora was also getting product from other producers such as Organigram in the past. Having a high patient base helps Aurora sell all of their own product and also product from other producers through them.
Radiant Technology– RTI- This company has special technology to extract oils without using a solvent base. They have higher output than traditional methods and can do it much fast.
Hemp Co– They are focused on hemp and have a processing facility near Edmonton AB.
Namaste– These guys sell vaporizers online, Aurora now has a deal with them to sell through Aurora.
BC Northern Lights and Urban Cultivator– These companies make products for home growing. Aurora has bought both and together they are producing about 5 million in revenue.
Aurora is currently generating about 5 million a quarter so 20 million per year. They are currently valued at about 1 billion dollars.
This is one of the top revenue numbers in the industry right now, but they need to bring on the Aurora Sky project and really start bringing in the money. Part of the 1 billion valuation is the expectation of revenue generated by their planned expansion.
Aurora is one of my core holdings, with over 14,000 shares. I used to be worried when I had 10k as each dollar up or down was 10 grand. With the volatility of this stock it has gone up and down a $1 or more at times. Each time it has dropped to $2 I’ve added more shares. Now with the stock sitting at $2.80 these dip buys have worked out good. I detail all my buys on my portfolio page.