However, unlike Canopy Growth (WEED), which has all its future development sites in Canada (MJX), Aurora Cannabis is expected to develop a large part of its capacity in Denmark. Let’s look at this in more detail.
Aurora Cannabis currently has a total licensed capacity of 95,000 square feet, which makes up ~5% of the company’s total capacity, including that which is under construction and in design. Aurora Cannabis has ~848,000 square feet of capacity under construction, primarily in the provinces of Alberta and Quebec.
In the chart above, we can see that over half of Aurora’s capacity, or 1.1 million square feet, is expected to be built in Denmark. Of this, ~100,000 square feet of an existing facility are being retrofitted, with the first harvest expected to take place in 3Q18. The remaining 1 million square feet will be constructed by a partner company in phases, with the first 200,000 square feet expected to be completed by 3Q18. Aurora Cannabis has 51% ownership of the facility.
In its recent filings, the company stated, “With a growing number of countries adopting medical cannabis legislation, the Company has embarked on an aggressive international expansion strategy that currently sees Aurora with operations and investments in Germany, Denmark, Italy, and Australia.” Together, all of Aurora Cannabis’s facilities will produce ~270,000 kilograms annually.
With 91 cannabis licensed producers in Canada, including Aphria (APHQF) and MedReleaf (MEDFF), things are getting crowded. To add to this, in its recent filings, Canopy Growth stated, “Cannabis producers positioning to become primary provincial suppliers will need to demonstrate that they have sufficient inventory levels and in production capacity at March 31, 2018.” This may explain why Aurora Cannabis is focusing on international markets.