Aurora stock is gaining momentum as the broader cannabis sector is recovering from the recent correction. This morning, Aurora Cannabis (TSX:ACB) (NYSE:ACB) announced that it has received two licenses for outdoor cultivation from Health Canada.
Further Boost for Production
One of the cannabis companies that has managed to grow by leaps and bounds over the past years to become one of the biggest players in the industry is Aurora Cannabis. It is now one of the most influential cannabis companies in the world and aims to continue its march to grow bigger.
In a new development, Aurora received two licenses for outdoor cultivation from Health Canada, and that will further boost the company’s production capabilities in the near future. The two sites for which it got licenses are in British Columbia and Quebec, and the company has big plans regarding those sites.
Aurora Cannabis is going to set up high tech facilities, where the company will be able to conduct research in relation to genetics and be able to produce high-quality products consistently. In addition to that, there is talk about conducting extensive research on varying cultivation techniques that could boost production significantly.
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Aurora stock is trading higher by 4% at $9.16 on the TSX. Moreover, ACB stock is up 3.20% and now trading at $6.99 on the NYSE.
The facility in British Columbia is going to be called Aurora Valley, while the one in Quebec is going to be called Aurora Eau. The former is spread over an area of 21,000 square feet, and Aurora plans to start planting soon. At Aurora Eau, the company has already completed planting.
Terry Booth, the Chief Executive Officer of Aurora Cannabis, spoke about his plans regarding the two locations. He said, "Our team plans to use these areas to ensure we are able to consistently grow the high-quality cannabis Aurora has become known for around the world. We're proud to be a Canadian company and this is a further commitment to research and job creation in Canada.”
As a cannabis producer, Aurora Cannabis is in a league of its own, and it is believed that the company is going to produce as much as 625,000 kilos of cannabis by 2020. Only one other company comes close to that, and that is Canopy Growth (TSX:WEED) (NYSE:CGC), which has projected production capabilities of 500,000 kilos by 2020.
Aurora stock is up about 30% since the beginning of this year and remains among the most popular companies in the cannabis sector.
What do you think about Aurora's new Health Canada licenses and facilities?
Featured image: Canva
