Aurora Cannabis (ACB) reported its earnings yesterday and provided some key insights into its hemp business activity. On its earnings call, Aurora Cannabis stated that its partner, Radient Technologies, will have the capacity to produce 10,000 kilograms of industrial hemp per day. Aurora Cannabis’s hemp-related companies include Agropro, ICC, and Hempco.
Foray into the US market
US hemp legalization has ushered in new possibilities for Canadian cannabis producers including Canopy Growth (WEED), Aphria (APHA), and Cronos Group (CRON) to have a market presence in the cannabis sector through products derived from industrial hemp. On its earnings call, Aurora Cannabis stated that hemp-derived products, which are mainly CBD-based, offer a therapeutic and wellness effect and are non-intoxicating.
Plus, the company stated that it plans to launch several wellness products because this market (HMMJ) “is gaining considerable traction globally and which represents an incredible opportunity for early leaders such as Aurora to establish a solid market footprint both at home and internationally.”
Besides hemp-based products, Radient will also expand its ability to process nearly 1,000 kilograms of medical cannabis. The company aims to use cannabis oil extraction from Radient to increase its softgel format, which it believes is becoming a popular alternative. The company’s Aurora Vie Arm produces nearly 1.4 million of softgels each week.