Takeover imminent, page-41

https://www.********/investing/2018/06/11/3-things-you-may-not-know-about-aurora-cannabis.aspx

There's more to this marijuana kingpin than meets the eye.​

Sean Williams
(TMFUltraLong)​

Jun 11, 2018 at 7:51AM​

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1. Aurora has an ancillary business that doesn't involve touching the cannabis plant​

Though most on Wall Street probably know Aurora Cannabis as the grower that could produce the most weed when at full capacity, they may not realize that Aurora is also involved in the highly lucrative ancillary pot business. In other words, it has operations that don't come into direct contact with the cannabis plant.
In November 2017, Aurora announced the acquisition of Larssen, a company involved in the design, engineering, and construction of greenhouses throughout the world. Larssen had been commissioned to manage the Aurora Sky project prior to this acquisition, and was regularly relied on by Aurora to handle greenhouse builds and retrofits. By acquiring Larssen, Aurora internalized its design and development costs for its numerous greenhouse projects, and gave itself a way to generate ancillary revenue by providing consulting and construction services to other growers. Currently, Larssen is working on greenhouse projects for The Green Organic Dutchman and Australia's Cann Group.

Image source: Getty Images.​

2. Aurora's focus is on medical marijuana, even with recreational weed about to be legalized​

Another tidbit you may not know about Aurora Cannabis is that unlike many of its peers, which are focused almost entirely on the domestic recreational weed market, it's predominantly geared toward medical marijuana production.
Given that adult-use marijuana represents a much larger consumer pool, this probably doesn't make much sense. However, there are advantages to focusing on the medical side of the equation. For starters, aggregate demand is technically expected to be stronger for medical marijuana, once exports are added into the equation. There are more than two dozen countries worldwide where medical cannabis is legal, and Aurora is angling to be a primary supplier to these regions. In fact, Aurora Nordic's proximity to Europe's numerous medical-legal countries is no accident. It's part of Aurora Cannabis' plan to serve the European market as a key supplier.
What's more, medical marijuana is likely to be less of a commoditized indication, relative to the dried cannabis often purchased by recreational users. By focusing on cannabis oils and extracts, Aurora should be able to lessen the pain felt by dried cannabis commoditization, as well as appease those foreign countries where medical cannabis is legal, but the consumption of cannabis via smoking isn't allowed.​