Canadian licensed producer (LP) Aurora Cannabis (TSX:ACB; NYSE:ACB) kickstarted the week with two hefty announcements on Monday (November 5). 

The cannabis giant announced that it has officially opened its indoor premium cannabis production facility in Quebec, in addition to increasing its investment in cannabis retailer, Choom (CSE:CHOO) through a non-brokered private placement.


As a result of two announcements on Monday, the company’s shares on the Toronto Stock Exchange increased by 3.91 percent to close the trading session at C$9.56.

Aurora’s newest production facility, called Aurora Eau, is located in Lachute, Quebec and spans 48,000 square feet. The facility is comprised of 11 purpose-built grow rooms, which will allow the facility to produce up to 4,500 kg of cannabis annually.

This is Aurora Cannabis’ second production facility in Quebec, with the first one being Aurora Vie, an indoor growing facility in Point Claire.

Terry Booth, CEO of Aurora Cannabis, said the company is “thrilled” with its latest facility and looks forward to continue investing in Quebec. He noted that the Aurora Eau facility, in particular, has “incredible potential.”

“[Aurora Eau is] designed to be a place where our expert cannabis cultivators have the flexibility and control to produce some very special high-end varieties that few commercial growers are prepared to tackle. We intend to make some very rare and exciting products there,” Booth said in the release.

That said, the company also increased its investment in Choom Holdings by an additional C$20 million, which translates to a conversion price of C$1.25 per common share with a four year maturity date.  Aurora has also been granted the opportunity to acquire up to 40 percent in Choom at C$2.75 per common share.

“Through this strategic investment, Aurora further diversifies its retail strategy, with additional retail opportunities across Western Canada, and future potential opportunities in the Ontario market,” Booth said in the release. “We are pleased to increase our stake in Choom and support them as they execute on introducing their unique retail brand to Canadian cannabis consumers.”

According to the release, Choom is in the process of developing a network of retail stores that will feature selected products from a variety of LPs.  It has secured the rights to 45 retail opportunities within Western Canada. This includes 45 applications submitted, with 27 of those as development permits and the remaining 18 as building permits.

Thanks to the investment from Aurora, Choom plans continue expanding in the retail Canadian cannabis adult market.  Choom plans to use the proceeds for working capital and general corporate reasons.

“Aurora’s continued confidence and investment allows Choom to provide high quality cannabis to a broader market of consumers across the entire country and expedite our expansion and the roll out of store openings,” Chris Bogart, president and CEO of Choom, said in the release.

Shares of Choom, however, took a dip on the Canadian Securities Exchange following the announcement on Monday. As of market close, Choom’s stock dipped to C$0.89, which is a 3.26 percent decrease over Monday’s trading period.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.

Agreement propels development of safe and effective proprietary products and formulations for the emerging psychedelic industry

Optimi Health Corp. (CSE: OPTI) (“Optimi” or the “Company”), developers of a vertically integrated functional mushroom brand focused on the health and wellness sector, is pleased to announce that effective January 4, 2021, it entered into a lab services agreement with Numinus Wellness Inc. (“Numinus“). Recognized as an early leader in developing and supporting the safe, evidence-based, accessible use of psychedelic-assisted psychotherapies (PAP), Numinus is aiding Optimi’s mission to further the research and development of Canadian-grown psilocybin-producing mushrooms and related product formulations.

Keep reading... Show less

Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) (“Nextleaf”, “OILS”, or the “Company”), the world’s most innovative cannabis processor, is pleased to provide shareholders with the following corporate update:

Nextleaf Comments on Financial Results from Q1 Financials

Keep reading... Show less

Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”) reported its second quarter results for the period ended December 31, 2020. A complete set of financial statements and Management’s Discussion & Analysis has been filed at www.sedar.com. All dollar figures are quoted in Canadian dollars.

The second quarter of FY21, saw continued momentum for the Company despite ongoing pandemic related challenges. Net revenue grew 8% to $745,748 from $689,276 versus the same quarter year ago. The Company also saw significant improvement on its bottom line, reducing its net loss by 50% from ($.956) million to ($.481) million, year over year for the quarter, as a result of improved gross margin and cost management efforts. On December 9, 2020, the company announced the closing of the acquisition of substantially all of the assets of Lexaria Canpharm (“Canpharm“), the cannabis products division of Lexaria Biosciences, resulting in the addition of a new B2B Line of Business.

Keep reading... Show less

Royalty Model Provides Access to Early Stage Licenced U.S. Cannabis Companies and Leverage to High-Margin Revenues

FinCanna Capital Corp. (“FinCanna” or the “Company”) (CSE:CALI), a royalty company for the licensed U.S. cannabis industry, is pleased to provide a corporate update further to its recently announced upsized financing of $2 million

Keep reading... Show less

Significant progress made as Numinus-sponsored PRIME study on psilocybin-assisted psychotherapy for opioid, stimulant and/or alcohol use disorders enters pre-implementation stage

Numinus Wellness Inc. (“Numinus” or the “Company”) (TSXV: NUMI), a company creating an ecosystem of health solutions centered around developing and supporting the safe, evidence-based, accessible use of psychedelic-assisted psychotherapies (PAP), and Syreon Corporation (Syreon), a global contract research organization with expertise in conducting clinical trials across a broad range of diseases, are pleased to share that significant progress has been made in the single-arm, open-label compassionate access 1 trial of Psilocybin-Research Intervention with Motivational Enhancement (PRIME) for substance use disorders. Currently in the development stage, the PRIME study will assess the efficacy and safety of psilocybin-assisted motivational enhancement therapy.

Keep reading... Show less