Aurora Cannabis Inc. (TSXV:ACB) and Cann Group Ltd. (ASX:CAN) just announced that the companies have entered into a "technical services agreement". This agreement will facilitate the sharing of information, expertise and support in areas including cultivation, processing, extraction, manufacturing as well as the analysis of cannabis extracts. The agreement was inked when members of Cann Group's board visited Aurora's facility and will be in effect until 2022.
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Cann Group's Chairman, Allan McCallum
"Aurora's experience and technical know-how are recognized around the world as industry-leading. Cann is at the forefront of Australia's fledgling medical cannabis industry and is committed to adopting industry best-practices across all of our operations. This agreement will facilitate close co-operation and valuable technical support as we continue to develop our business in the Australian market. The agreement with Aurora strengthens our R&D programs, cultivation, manufacturing and service to patients, and we believe will help us build strong brand equity in the Australian market."
Cann Group's CEO, Peter Crock
"To position ourselves as one of the significant players in the Australian market, we are completing the expansion of our southern facility, as well as expect to commission a larger capacity northern facility by the end of this year. Aurora is incorporating industry leading technology in the world's most advanced new facility now under construction in Edmonton, and we will benefit greatly from a regular exchange of information, including reciprocal visits of key personnel."
Aurora Cannabis' CEO, Terry Booth
"This agreement with Cann is a key element in executing on our international expansion strategy. By transferring important operational know-how to Cann, our intention is to support not only the development of one of the leading players in this market, but also to accelerate the development of the broader Australian medical cannabis sector."
Visit by Australian Agricultural Minister
The visit by Cann Group's board that preceded this agreement coincided with a visit to Canada by Victoria's Agriculture Minister Jaala Pulford. Mrs. Pulford visited Aurora's facility and met with company management. Cann Group's Allan McCallum was pleased with her visit and had the following to say about it:
"It is important that Australia learns from the experience gained in countries where the industry has been established for some time and adopts high standards and best practices."
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Shares of Cann Group (ASX:CAN) closed today's trading in Sydney lower by 0.85% at $0.585 AUD. Trading volume in Cann Group was higher than the company's 30-day average volume. Since the company's IPO in May, shares are up more than 95% from the IPO price, but are down more than 9% from the company's close on their first day of trading.
Before this news was announced, shares of Aurora closed yesterday's trading on the TSX-V flat at $2.47 CAD. Year-to-date, Aurora Cannabis is gaining more than 7%. We'll be watching to see how shares open in North American trading given this news.
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