In another move toward edging into the budding European market, Aurora Cannabis (TSX: ACB; NYSE: ACB; Frankfurt: 21P) today inked an exclusive agreement for using and licensing out cannabis drying technology in the European Union (EU).
The agreement sees Aurora granted exclusive rights to EnWave Corporation’s (TSX-V:ENW; FSE:E4U) Radiant Energy Vacuum system in all areas of the EU (except Portugal), in addition to South America (except Peru), and Australia.
This royalty-bearing partnership grants Aurora an undisclosed percentage of royalties by sub-licensing out the drying technology to companies in those countries. Aurora additionally gains access to Radiant Energy Vacuum (REV) usage in Canada on a non-exclusive basis.
This licensing deal marks a shift for EnWave, who teamed up with Tilray (NASDAQ: TLRY) back in January to license REV drying technology to cannabis company The Green Organic Dutchman Holdings (TSX: TGOD).
Under the terms of the newly-signed deal, Aurora has already ordered two 120kW REV dehydration systems.
Those machines will be put into use at the existing Aurora Sky facility located in Leduc County and the Aurora Sun greenhouse in Medicine Hat that is currently undergoing construction. A third machine is expected to be ordered soon for use at the Aurora Nordic facility in Denmark next month.
Aside from the exclusive international licensing rights and drying system orders, Aurora is investing $10 million into EnWave through the purchase of 5.3 million common shares. Chief Executive Officer Terry Booth commented on the deal this morning:
Companies such as Aurora and The Green Organic Dutchman have been looking for methods to speed up the drying process while maintaining the terpene profiles for specific flavours and aromas that lure in repeat customers.
Getting high-quality product to market quickly has been a key component for the strategy of licensed producers, who are still struggling to overcome the prevalence of existing black market sellers.