Aurora Cannabis (TSX:ACB) has been approved to establish Malta’s first cannabis production facility, which will be run under a new subsidiary of the company, Aurora Malta.
The approved application entails the development of a seed-to-pharma cannabis operation, which will include the construction of a hybrid cultivation, manufacturing and distribution facility. According to a press release from Aurora on Tuesday (July 24), this is the first cultivation Letter of Intent (LOI) issued by Maltese authorities to date.
The company’s new subsidiary is to be formed with Aurora’s Maltese partner Cherubino, the largest pharmaceutical wholesaler in the country; however, Aurora will be the majority shareholder in the venture.
Aurora will be allocated land for the facility’s development by Malta Industrial Parks, with Aurora Larssen Projects designing the space and local experts helping with the building process. Aurora has collaborated with Cherubino on concept development for medicinal cannabis cultivation that meets the standards of Malta’s Production of Cannabis for Medicinal and Research Purpose Act, 2018.
While the facility will help serve Malta’s domestic market, the country’s location will also help serve export markets throughout Europe. Chief global business development officer, Neil Belot, highlighted the country’s location as a major bonus from the venture in a statement.
“Aurora already was the first company to export medical cannabis to both Italy and Malta, and now are the first to receive approval for the production, processing, and distribution of cannabis in the country,” Belot said.
“Having an EU GMP compliant facility in Malta will position us well to serve multiple international markets, including Southern Europe and beyond. We are delighted to have Cherubino as our local partner, whose professionalism, reputation and standing in Malta were instrumental in establishing a local presence. We look forward to creating a thriving Maltese business, generating significant employment opportunities, and serving medical patients with high-quality cannabis products.”
Aurora’s stock price took a hit on Tuesday, tumbling 7.27 percent to C$7.14 as of 3:06 p.m. EST.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.