The 2nd largest cannabis company by market cap, Aurora Cannabis (TSX:ACB) (NYSE:ACB), has signed a licensing agreement with EnWave Corporation (TSXV:ENW), it announced earlier today. Aurora stock is currently selling for $9.07 USD on the NYSE, down a shy 0.44% at the time of writing.
The news doesn't stop there, however, and checking out the press release, it seems Aurora and EnWave are buddying up in more ways than one.
Aurora Stock
Aurora has entered into a licensing agreement with EnWave, giving it exclusive rights to the company's patented Radiant Energy Vacuum (REV). It will use this drying technology in the production of cannabis material across the European Union (excluding Portugal for undisclosed reasons).
The exclusive license extends to Australia and South America depending on "minimum REV machine purchase order requirements." And further, the company has signed a non-exclusive sub-license to use REV technology in Canada.
Additional to the licenses, Aurora Cannabis has also placed a purchase order for two of EnWave's REV systems for its facilities in Canada, and a third purchase order for the company's Denmark facility is pending.
The news is so fresh that it's clear that the market hasn't had time to react. Checking back in with Aurora stock before today's close might show a different story. For now, shares are, as stated, slightly in the red.
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REV Technology
EnWaves patented REV technology is described as "a rapid, low temperature, continuous drying method that maintains the optimal terpene profile, flavor, as well as other product attributes during the drying process."
What this boils down to is quality. REV technology allows "uniform drying with flexible moisture content, unattainable with freeze drying or air drying."
EnWave and Aurora Stock
There's more to this partnership, however. The companies have entered into an Intellectual Property Agreement to jointly-develop further innovations surrounding the REV technology. Any commercial value that this may generate will be shared between the two bodies.
And there's more! To further cement the relationship, Aurora Cannabis has made a $10 million "strategic equity investment" in EnWave. The company bought over 5 million common shares of EnWave at a price of $1.886 per share.
What do you think? Will this news garner some movement for Aurora stock?
Featured Image: Canva
