As Canadian licensed producers increasingly look to the European Union for expansion, Alberta-based Aurora Cannabis Inc. (TSX: ACB; NYSE: ACB; Frankfurt: 21P; WKN: A1C4WM) just signed an exclusive supply deal with the Luxembourg government.
Aurora’s subsidiary Aurora Deutschland was granted the rights for a new delivery of medical cannabis to the small European nation through a public bid with the Luxembourg Health Ministry.
With that supply deal in place, Aurora Deutschland will produce and sell medical cannabis directly to the country’s Division de la Pharmacie et des Medicaments.
Canadian producers such as Aurora are racing to establish early mover advantage in European countries where medical cannabis has been legalized, especially looking towards EU nations where cannabis product can be transported more freely between markets.
In regards to the Luxembourg deal, Aurora’s Chief Global Business Development Officer Neil Belot commented:
On the international front, Aurora has made several other major moves lately, including a sub-licensing partnership with EnWave Corporation (TSX-V:ENW; FSE:E4U) to license out cannabis drying technology in the EU and South America.
A month before that announcement, Aurora also established a bigger footprint in the German market by striking a deal to provide cannabis oils directly to German pharmacies, in addition to Aurora Deutschland previously supply dried flower products.
With customers in budding legal markets seeking additional choices for consumption, products such as oils and tinctures are expected to become more prominent for both medical patients and recreational users where cannabis has been fully legalized.
Back in Aurora’s home country, the company has been focused heavily on ramping up production through the expansion of greenhouse facilities. Notably, the Aurora “Sun” facility is currently under construction in Medicine Hat, Alberta. When finished, that site is projected to feature 1.62 million sq. ft. of space for grow rooms and packaging areas to prepare product for the end consumer.