Aurora Cannabis

Income Statement Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013
Total Revenue 1.44 0 0 0
Gross Profit -0.8
Operating Income -4.59 -9.43 -1.82 -0.4
Net Income 5.72 -9.52 -1.82 -0.39

Balance Sheet Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013
Total Assets 18.4 13.53 5.49 0.72
Total Liabilities 12.43 9.69 3.72 0.02
Total Equity 5.96 3.83 1.77 0.69

Cash flow Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013
Period Length: 12 Months 12 Months 12 Months 12 Months
Cash From Operating Activities -6.77 -3.32 -0.14 -0.45
Cash From Investing Activities -1.88 -7.84 -1 0
Cash From Financing Activities 8.6 10.56 1.37
Net Change in Cash -0.06 -0.6 0.23 -0.45

* In Millions of CAD (except for per share items)


Price Target 2017 : $4.50 +     Analyst Consensus : STRONG BUY       Market Sentiment : Very Bullish


 

About Aurora Cannabis

 

Aurora is the only Alberta-based licensed producer, with its corporate head office in Edmonton, Alberta. The Company received its first license to produce and sell cannabis in February 2015, and began shipments in January 2016. In January 2017, it announced the receipt of Health Canada approval to begin selling oils, although it had been authorized to produce oils since February 2016. Aurora recently acquired the largest cannabis counselling network in Canada, and has begun construction of what it expects to be the largest, most advanced cannabis production facility in the world (Aurora Sky) at the Edmonton International Airport, which would bring total annual capacity to 70,000 kg. Aurora was the first LP to construct a purpose-built facility, the first to launch a mobile app for the purchase of legal cannabis, and the first to introduce same-day delivery.


Production:

The Company currently operates a purpose-built indoor growing facility near Cremona, Alberta, northwest of Calgary, in the foothills of the Rocky Mountains. Its current annual capacity is 7,000 kg, and in December 2016, the Company announced that it had commenced construction of Aurora Sky, a 650,000-square foot hybrid greenhouse facility. Phase I (of II) would add 20,000 kg of capacity. Management expects the facility’s proximity to the airport will allow Aurora to leverage existing infrastructure, and facilitate potential export opportunities where legally available. In January 2017, the Company announced a $60M bought deal private placement to help finance capacity expansion.


CanvasRx Acquisition

Powerful Referral Source: In August 2016, Aurora acquired CanvasRx, Canada’s largest medical counselling outreach network, for $10.3M upfront in cash and stock, with up to $26.8M in additional consideration payable based on milestones over the next three years. Management estimates that one in four new legal patients in Canada are referred by CanvasRx. CanvasRx operates 19 locations in Ontario and Alberta, from which it helps register patients with their licensed producer of choice, in return for a referral fee of $25/month/patient. Sixteen of those nineteen locations operate under the Canadian Cannabis Clinics (CCC) banner. As of late November, CanvasRx had served over 13,000 patients, representing 30% growth in the three months following its acquisition by Aurora. In addition to the referral source, management expects CanvasRx to provide Aurora with valuable aggregate patient data that will aid in future product development. CCC and CanvasRx are undertaking what they believe to be the largest observational study of medical cannabis of its kind in Canada (1,000 patients). Over a three-year period, the study is designed to identify the effects (beneficial and adverse) of inhaling cannabis, by smoking and vaping. Its pro forma full quarter revenue contribution for the period ending September 30, 2016, was just over $0.7M.


Positioned as Low Cost Producer:

Citing its location in Alberta, the Company notes that given its costs for overhead, taxation, power and water, it believes it is one of the lowest cost-per-gram producers in Canada.


Investment In Downstream Development:

In December 2016, the Company announced a Memorandum of Understanding (MoU) with Radient Technologies (RTI-TSXV, NR) that contemplates a potential partnership in the Canadian market. The agreement would include a $2.0M investment by Aurora in RTI via a convertible debenture. Radient operates a 20,000-square foot facility in Edmonton that extracts natural ingredients for multiple applications, including food and beverage, nutrition, pharmaceuticals, and cosmetics.


Source : Echelon wealth partners report