This Cannabis Stock Could Deliver A Quick Gain
Canadian cannabis producer Aurora Cannabis Inc(NYSE: ACB) announced that Health Canada has granted its extraction technology partner Radient Technologies Inc a standard processing license.
CNW Group recently reported,
“In 2016, Aurora identified Radient’s proprietary extraction technology (MAP™) as potentially disruptive for the cannabis industry due to its ability to achieve much higher throughputs than is possible with existing benchmark technologies, as well as its efficiency and ability to preserve the full spectrum of cannabinoids and terpenes found in the source material.
These aspects provide key competitive advantages in the development and large-scale production of high-quality derivative products.
Since investing in Radient, Aurora has expanded into the hemp sector with its majority ownership of Hempco Food and Fiber (“Hempco”) and the acquisition of AgroPro, Europe’s largest producer of organic hemp products, providing low-cost access to high-quality raw material for the extraction of CBD.
The industrial-scale extraction of CBD will play a key role in the roll-out of Aurora’s derivative products strategy, including the development and production of high-margin products for the wellness market.”
Aurora’s CEO, Terry Booth, said, “Early on we identified that the ability to extract cannabis and hemp at large-scale while preserving quality would be a crucial competitive advantage to address the rapidly growing market for derivative products, such as vapes pen solutions, softgels, edibles, and beverages”
“With the upcoming new regulations permitting additional form factors and Radient’s recent receipt of its processor license, we are in a strong position to rapidly expand production of a broad portfolio of extract-based products, tying in well with the significant scale-up of our global cannabis and hemp operations.
We look forward to continuing to work closely with Denis Taschuk and his team at Radient to drive accelerated growth for both companies.”
Radient’s CEO, Denis Taschuk, added, “Our partnership with Aurora has been instrumental these past two years towards achieving this milestone.
With our license granted, operations at our commissioned Edmonton I facility are now commencing.
We are scaling up our operations further with the construction of our Edmonton II and III facilities, and we look forward to executing on our partnership with Aurora on a global scale.”
Momentum indicates the up-trend in the stock is likely to continue. Momentum is shown with the stochastics indicator at the bottom of the chart below.
ACB should be considered a buy if this price move continues.
Look for an entry at $7.93 with a price target of at least $8.68 based on the pattern in the chart.