As the first anniversary of Canadian cannabis legalization is on the horizon and both stock price and quarterly earnings reports continue to disappoint, major licensed producers are on the hunt for extra funding while ramping up production. 

Today the Edmonton-based Aurora Cannabis Inc. (NYSE: ACB; TSX: ACB) secured a new line of funding by upsizing an existing credit facility with a group of lenders working alongside the Bank of Montreal. 

The original $200 million funding is bumping up by an extra CAD$160 million through a combination of a revolving credit facility and term loans, which will mature in August two years from the date of closing. 

Aurora’s Chief Financial Officer Glen Ibbott issued this statement about the increased funding line: 

The upsizing of our credit facility and broadening of the lending syndicate to include additional Schedule 1 Canadian Banks is further recognition that our best-in-class production facilities lead the industry. Access to this non-dilutive capital is a core funding source the company intends to utilize as it further executes on its strategic growth initiatives.

Last week Aurora released preliminary fiscal Q4 2019 financial data, estimating the company will show revenue of $100 million for the quarter ending June 30. 

With licensed prices still higher across the board than non-licensed sources and producers waiting on new regulations to arrive so legalized edible and vape sales can begin in earnest, stock prices across the Canadian cannabis industry have been on a clear downward trajectory in recent months. 

Aurora’s stock has followed that industry-wide trend, steadily decreasing from a high of $9.94 in March down to a price of $5.70 a share as of Thursday evening. 

Looking to expand internationally and find new revenue streams, Aurora recently struck a deal to provide medical cannabis to Italian patients through European subsidiary Aurora Deutschland, and additionally kicked off a CBD research project with U.S.-based mixed martial arts organization UFC. 

On the Canadian side of operations, Aurora is currently looking into new outdoor grow operations to supplement existing indoor facilities. The company received Health Canada approval for two outdoor grow sites in Quebec and British Columbia, which will be unlikely to see full scale harvests until next year. 

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