Aurora on expansion
Early on April 10, Aurora Cannabis (ACB) announced that it will expand its Aurora Sun facility to 1.6 million square feet with a production capacity of ~230,000 kilograms per year. According to the company, the technology advancement at the upgraded facility will also help drive the cost of production lower, which has been a dire need for the company as well as peers (HMMJ) Canopy Growth (WEED), Aphria (APHA), Tilray (TLRY), and HEXO (HEXO).
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Why the expansion?
In its press release, Aurora Cannabis stated that this expansion of the facility was in anticipation of growing demand in medical cannabis in Canada and internationally. The company had originally planned to expand the facility to 1.2 million square feet but now plans increase capacity to 1.6 million.
One of the most important considerations for growing cannabis in Canada is the ability to handle the extreme weather. Aurora stated that “A sophisticated glass roof, rainwater and snow melt recapture system, and a high-level of technology and automation give Aurora full control over all anticipated environmental and harvest conditions, resulting in the production of consistently high yielding, high-quality cannabis at low-cost.”
Aurora Cannabis closed about 2.3% lower yesterday and was flat in the pre-market session.