Aurora stock is up 3.7% on Thursday after Aurora Cannabis (TSX:ACB) (NYSE:ACB) issued a corporate update on its global operations and strategic investments.
Aurora Stock Boosted By Increased Transparency
Aurora Cannabis, the world's second-largest cannabis company by market cap, announced today that it would be providing stakeholders with quarterly updates on the company's operations in an effort to improve transparency between the company and its investors. "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. Aurora stock has gained as investors welcome the improved lines of communication.
Facilities Nearing Completion
Aurora has revealed that most of its major construction projects are nearing completion with Aurora Polaris, its major hub for industrial-scale production in Edmonton, expected to be occupancy ready by October 31. Located immediately adjacent to this is Aurora Sky, the Company's 100,000+ kg/year cannabis production facility, which is nearing the completion of outdoor construction along with its sister plant in Denmark, Aurora Nordic. Aurora stock is predicted to double in 2020 once these new facilities are fully functional.
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Construction on the Whistler Pemberton facility is expected to be completed during the fourth quarter. Four rooms at the site are currently fully operational, producing an annual capacity of 1,200 kg of organic cannabis. By November, Aurora hopes to have an additional 11 rooms come online, and once fully completed, the site will have a total production capacity of 4,500 kg. Through its subsidiary Whistler Cannabis Co, the company plans to launch a range of cannabis derivative products that should boost Aurora stock following legalization 2.0.
On October 2, Aurora Cannabis began its inaugural harvest at Aurora Valley in Westwold, British Columbia. The first harvest at the 200-acre site includes approximately 55,000 plants across six different strains and will be shipped to Aurora Sky in Edmonton for extraction and further testing. This harvest represents an important milestone for Aurora as it aims to further develop techniques for cultivating cannabis in varying climate conditions.
The Takeaway
Aurora stock is currently valued at $5.77 after hitting a 52-week low last week. However, today's updates clearly show the company is on track to reach full scale in the near future and the emphasis on increased transparency is evidence that the cannabis industry is learning from the mistakes of embattled companies such as Canopy Growth (TSX:WEED) (NYSE:CGC) and Canntrust Holdings (TSX:TRST) (NYSE:CTST).
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