The last few months have been very busy and significant for Aurora Cannabis (ACB.TO) (ACBFF) and we remain bullish on its long-term outlook.

From Germany to Australia, this Canadian licensed medical marijuana producer continues to execute and advance its business operations. We continue to view Aurora as one of the best long-term cannabis investment opportunities as the company continues to expand its reach and improve its product offerings.

Over the last year, Aurora has continued to raise capital and has been strategically deploying these resources. The company has one of the strongest balance sheets of all the cannabis companies and we are favorable on their acquisitions and investments.

Aurora Announces Two Strategic Acquisitions

Aurora Cannabis has continued to execute on its business plan and yesterday, the company completed the acquisition of both BC Northern Lights Enterprises and Urban Cultivator, leaders in the production and sale of proprietary systems for the indoor cannabis cultivation and indoor gardening appliances, respectively.

BCNL has been operating for 16 years and Urban Cultivator has been in business for and 7 years. Both are on track to generate more than $5 million in revenues in their current fiscal year, combined.

In return, Aurora will pay $3.85 million in cash on closing and issue $500,000 worth of common stock and share purchase warrants. The company will also issue up to $4 million of future consideration based on the achievement of certain pre-established EBITDA performance milestones related to BCNL and Urban Cultivator operations.

These are strategic acquisitions for Aurora which plans to capitalize on the home gardening market in Canada. More than 10,000 Canadian medical marijuana patients are registered to grow either their own cannabis or as designated growers for others. This number is expected to significantly increase once recreational marijuana is legalized next year.

Capitalizing on the Cannabis Oil Market

One of the most exciting partnerships and investments that Aurora has made is with the extraction technology firm, Radient Technologies (RTI.V). Over the summer, the two companies confirmed the effectiveness of Radient’s proprietary MAP Technology and associated continuous flow design for the extraction of cannabinoids from dried cannabis.

Aurora said that the technology provides them with the ability to extract cannabis oil at a more efficient and faster pace. The research data indicates that Radient’s proprietary large-scale continuous-flow MAP extractor can process more than 1,500 kg per day. The technology can get the most extract out of the dried cannabis and this will be a significant benefit to Aurora’s bottom-line.

We are favorable on Aurora’s focused on the cannabis oil market and we believe the partnership and investment in Radient puts them in a great position to capitalize. The combination of Aurora’s cannabis and Radient’s technology is a major benefit to this opportunity. We expect cannabis oil to become an even more significant component of Aurora’s total revenue stream.

Enhances Its Story via Acquisitions and Partnerships

September has been a busy month for Aurora and we are favorable on these developments as they show continued execution by the management team.

Aurora and Namaste Technologies Inc. (N.CN) (NXTTF) recently signed an exclusive hardware supply agreement for the Canadian market. Pursuant to the agreement, Aurora will offer a specially curated selection of industry-leading vaporizers which will be sourced from Namaste.

Namaste will establish a direct inventory feed to both Aurora’s online shop and its mobile app, providing Aurora customers with access to a range of medical grade vaporizers and other innovative products that are supplied through its platform.

In mid-September, Aurora and Hempco Food and Fiber Inc. (HEMP.V) signed definitive agreements to move forward with Aurora’s strategic investment in Hempco. The transaction consists of two connected components: a private placement between the two companies and an option agreement in which two of Hempco’s principal shareholders have granted Aurora an option to purchase a majority stake in the company.

We are favorable on this transaction as it further diversifies Aurora’s line of cannabis products into the burgeoning CBD market. We expect to see the deal close and believe that Hempco will prove to be an accretive transaction for the licensed marijuana producer.

Secures Permits to Become a Marijuana Leader in Germany

The most significant development during the month of September does not pertain to Aurora’s Canadian operations. This milestone was reached after Aurora secured the necessary permits and shipped 50 kg of dried cannabis to Berlin-based Pedanios.

Upon delivery to Pedanios, the product will be distributed to a network of more than 1,500 pharmacies across Germany, which represents the largest single federally-legal medical cannabis market in the world.

Germany is going to be a major medical marijuana market and through Pedanios, Aurora plans to become a leading licensed producer there, as well as in other European Union markets. Aurora has already secured additional import permits and ongoing, regular shipments are scheduled to continue.

Australia: A New Frontier for Aurora

Earlier this year, Aurora Cannabis became focused on the legal cannabis market in Australia and acquired 19.9% of Cann Group (CAN: ASX) ahead of its initial public offering (IPO). The Canadian licensed producer became Cann Group’s cornerstone investor prior to the IPO and were favorable on this move.

Cann Group has proven to be a great investment and the shares are up almost 100% since its IPO. In June, Cann Group became the first Australian company to be licensed by the Office of Drug Control for commercial medical cannabis cultivation and production.

We are favorable on Aurora’s leverage to this medical marijuana market as we expect Australia’s medical marijuana market to record significant growth on a year-over-year basis.

A Stock Investors Need to Watch

Aurora Cannabis has been nothing short of an execution story over the last year and we are favorable on the moves made by the company. Specifically, we are favorable on the significant international exposure, the strong balance sheet, the company’s investments and partnerships, and the management team.

We believe that Aurora possess all the right traits to be a leading licensed marijuana producers across the globe and think this is a stock that every investor needs to have on their radar.