Today, Aurora Cannabis Inc. (ACB.TO) and Radient Technologies Inc. (RTI.V) announced that both parties have agreed to a 17-day extension (through November 6th) on the 140-day term under which Aurora was granted certain exclusive rights to negotiate the acquisition of certain exclusive rights to use Radient’s technology and processes.

This is a positive development and the companies reported that significant progress has been made towards finalizing the agreement.

A Faster and More Efficient Method to Extract Cannabis Oil

Today’s announcement comes a few months after the companies confirmed the effectiveness of Radient’s proprietary technology and associated continuous flow design for extracting cannabinoids.

In June, the market responded favorably to the research results due to the implications this would have on Aurora’s cannabis oil business. The study found that Radient’s proprietary technology processed cannabis oil faster and more efficiently.

The research data indicated that the technology could process 1,500 kg per day, significantly higher than conventional methods.

Aurora: A Canadian Cannabis Oil Opportunity

Cannabis oil has become big business in Canada with several licensed medical marijuana producers reporting that it represents more than 50% of its total revenue. The Canadian medical marijuana market has seen a major trend toward smokeless products and Aurora is focused on capitalizing on this opportunity.

Demand for cannabis oils, especially high CBD oil, continues to increase and this is a trend we expect to continue as researchers learn more about the therapeutic value cannabinoids provide.

Last week, Hempco started the process for Aurora to acquire a majority stake in the company. This acquisition will make Aurora one of Canada’s leading CBD companies and if you combine Hempco’s assets with Radient’s technology, Aurora would be in a firm leadership position.

Hempco and Radient Help Position Aurora for Success

Aurora Cannabis is focused on two major growth opportunities, cannabis oil and CBD. We are favorable on this focus and expect to see the company execute on its strategy to become a global leader.

We expect to see Aurora extend its agreement with Radient as it would be a major benefit to its cannabis oil business. We will keep an eye on how this story develops and recommend keeping a close eye on Aurora.