Aurora Cannabis Inc. (OTCMKTS:CVSI) rallying by more than 20% over the past one month does not come as a surprise, given the bullish momentum that continues to build around the stock. The Canadian marijuana producer is fresh from reporting a 151.7% increase in its first-quarter revenue that continues to reaffirm its growth prospects in the industry.
The company announcing plans to build an 800,000 sq. ft. cannabis production facility is a further testament to the stock’s long-term potential at the back of the recent marijuana legalization drive in the U.S. Canada could further expand Aurora Cannabis target market as it is planning to legalize the federally prohibited plant for medicinal purposes.
Completion of the hybrid greenhouse, which will be larded than 16, football fields will take Aurora production capacity to another level. Initial estimates indicate that the plant will be able to produce more than 220, 460, pounds of marijuana a year, given its high level of automation. Such a feat should allow the company to accrue a substantial amount of market share in the fast-growing industry.
The company says it generated revenues of $3.1 million for the three months ending September 30, 2016, on sales of 435,720 grams of marijuana. Rapid growth in sales and revenue according to Chief executive officer, Terry Booth, is down to the company’s strong brand and business strategy.
“Based on our operational strength and our position as one of the recognized leaders in the capital markets in the cannabis sector, we were able to significantly strengthen our balance sheet both during and subsequent to Q1 2017,” said Mr. Booth.
Aurora cash balance of $50 million is one of the strongest in the industry further justifying why it is a safe bet in the fast growing industry. The company also boasts of one of the largest network of cannabis patient centers that is still growing and expected to provide a ready market for the company’s products going forward.