SEATTLE, WA / ACCESSWIRE / April 26, 2016 / The cannabis industry may have been taboo under former Prime Minister Stephen Harper and his Conservative Party, but a new government has brought a very different perspective. Justin Trudeau's Liberal Party won a strong majority government in the October 2015 federal election, with legalization of recreational marijuana as a key plank in their campaign platform. The Liberals now have a clear mandate to reform Canada's outdated marijuana laws, and have begun to lay the groundwork for a legal recreational market. On April 20, 2016, the government announced that legislation to legalize cannabis would be introduced in the spring of 2017.
Existing, proven licensed producers under the Marihuana for Medical Purposes Regulations (MMPR), such as Aurora Cannabis (CSE: ACB) (OTC: ACBFF), Organigram Holdings (TSXV: OGI) (OTC: OGRMF), Emerald Health Therapeutics (TSXV: EMH) (OTC: TBQBF) and Mettrum Health (TSXV: MT) (OTC: MQTRF), will have significant advantages when it comes to supplying what promises to be a large and lucrative recreational market. The success to date of a burgeoning legal recreational market in Colorado has already demonstrated the tremendous potential for Canada, which has a population that's about seven times larger, at 35 million.
A Natural Low-Cost Producer
Aurora Cannabis was founded on the premise that legal medicinal cannabis should be of the highest quality, affordable, and easy to access. With an $11.5 million 55,200-square-foot production facility located near Calgary, the company combines natural elements like fresh mountain water with state-of-the-art technology to provide among the cleanest, safest products on the market - without using pesticides, and without employing techniques such as irradiation, which can alter certain desirable medicinal properties in the cannabis plant.
The company's vertically integrated business model, use of natural resources, and presence in Alberta have enabled it to beat competitors elsewhere in Canada in terms of production costs. Alberta has some of the lowest tax rates and electricity costs in the country, an abundance of farm credit programs, as well as grants available to innovative companies in the agricultural sector. By leveraging these advantages, the company's strains are offered at just $8 per gram (with $5 per gram compassionate pricing).
Earlier this year, the company received approval from Health Canada to produce derivative cannabis products, such as oils and other extracts. Of particular importance, ingestible cannabis derivatives are ideal for people who need or prefer a delivery system that does not involve smoking. These products represent new revenue streams, and are expected to increase net margin substantially by the end of 2016.
Powering-up Aurora's Marketing Efforts
Aurora Cannabis is performing well on the important metric of patient acquisition, having surpassed 1,000 active registered patients in its first three months of product sales - believed to be the fastest any licensed producer has reached that milestone. The company recently ramped-up its marketing outreach efforts with the appointment of Mr. Cam Battley as Senior Vice President of Communications and Medical Affairs.
On April 6, 2016, Mr. Battley was elected to the Board of Directors of the Canadian Medical Cannabis Industry Association (CMCIA), the trade association for licensed producers under Health Canada's MMPR program, and he is currently the Chair of the Advocacy Committee for the Association. Previously, he served as the Vice President of Communications and Corporate Development for Bedrocan Canada, another leading licensed producer.
In his new role, Mr. Battley will be responsible for external communications, investor relations, collaboration with the medical community, business development, and patient and other stakeholder initiatives. With a dynamic, high-profile background, Mr. Battley will help the company capitalize on its inherent advantages as high quality, low- cost producer. This could translate into helping Aurora capture greater market share and entrench its position as a recognized best-of-breed industry leader.
Looking Ahead
Aurora Cannabis is well positioned within Canada's fast-growing cannabis industry to continue to capitalize on its emerging role as an industry frontrunner - and benefit from Prime Minister Trudeau's bold move to legalize recreational cannabis. Shareholders should position themselves as well to reap the potential rewards.
For more information, visit the company's website at www.auroramj.com.
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Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Important factors that could cause these differences include, but are not limited to, the demand for the company's services, governmental regulation of the cannabis industry, and the company's ability to execute its business plan. Emerging Growth LLC dba TDM Financial, which owns CFN Media, is not registered with any financial or securities regulatory authority, and does not provide nor claim to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CFN Media, may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. For full disclosure please visit:http://www.cannabisfn.com/legal-disclaimer/.
SOURCE: CFN Media
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