Just about every cannabis stock has suffered a drop in valuation in 2019. As a result, companies seem to feel they need to hold the investor’s hands by issuing statements of company health. The latest is Aurora Cannabis Inc. (NYSE: ACB) who provided a corporate update that didn’t really give any ‘new’ news.
“Aurora takes its leadership position in the global cannabis industry seriously, and is committed to being open and transparent with all of our stakeholders,” said Terry Booth, CEO of Aurora. “The Aurora team is working to advance several major strategic initiatives in Canada, the United States and abroad aimed at further strengthening Aurora’s global position. We are laser-focused on delivering on our business plan and prudently managing our investors’ capital.”
The market though didn’t respond in the manner that was hoped for as the stock sold off another 7% and was lately trading at $4.12, which is lower than the 52-week high of $12.52. The update mostly reviewed the various grow facilities and construction status.
Update on Facilities in Construction:
As Aurora executes on its strategy of leading scalable, purpose-built cultivation, it continues to prudently manage capital allocation decisions driven by global forecasts for demand. Many of the Company’s significant construction projects are nearing completion of major milestones with significant capital investments concluded.
Aurora Sun and Aurora Nordic 2 Construction Update
Aurora continues to progress construction of its 1.6 million square foot facility, Aurora Sun, located in Medicine Hat, Alberta, and its 1 million square foot facility, Nordic Sky, strategically located in Odense, Denmark. The new purpose-built, “Sky Class” facilities Aurora are constructing will have full control over all anticipated environmental and harvest conditions, resulting in the production of consistently high yielding, high-quality cannabis at low-cost.
Mr. Booth added, “Aurora Sun in Medicine Hat and Aurora Nordic in Denmark represent the next evolution of our “Sky Class” cultivation philosophy and construction of these projects is proceeding well. Aurora Sun is nearing completion with the majority of capital investment now behind us, while at Aurora Nordic the primary outdoor construction, including the enclosure of the facility, nears completion. Our design philosophy allows for flexibility in licensing and commissioning in-line with the long-term growth in global demand for medical cannabis.”