Aurora Cannabis Inc. (ACB.TO) (ACBFF) continues to execute on all cylinders and put its capital to work.

The licensed Canadian medical marijuana producer has over $300 million of cash on hand and the company has been using its stock as a currency to make strategic investments and acquisitions.

Although Aurora has been making significant moves like this all year, the acquisitions made yesterday are significant and further enhance the company’s long-term outlook. Today, we want to highlight the updates from yesterday and provide some insight into how these developments will further improve the company’s positioning.

Increases Potential Production Capacity

Yesterday, Aurora Cannabis increased its production capacity potential after it entered a binding share purchase agreement to acquire H2 Biopharma, a late-stage ACMPR applicant based in Lachute, Quebec. The acquisition will be Aurora’s fourth production facility in Canada and its second in Quebec.

H2 is currently completing a 48,000 square foot cannabis production facility, less than an hour from Montreal and near the Pierre-Elliott Trudeau International Airport. Upon completion (expected before the end of 2017), the facility is projected to produce approximately 4,500 kilograms of cannabis per year.

An initial payment of $10 million will be made, with further payments in consideration of the acquisition to be made upon the achievement of certain performance-related milestones, including completion of the facility, the granting of cultivation and sales licenses by Health Canada, and municipal approval for expansion of the facility. The total contingent consideration for the acquisition of H2, including closing and milestone payments, is $25 million and all payments will be satisfied through the issuance of Aurora common shares.

Makes Strategic Acquisition of Leading Greenhouse Builder

Yesterday, Aurora Cannabis signed a definitive agreement for the acquisition of Larssen Ltd. The terms of the transaction are undisclosed but include performance-based milestone payments, such as those related to profitability metrics, as well as certain Aurora standards. The company anticipates completing the acquisition within the coming weeks.

Larssen, a Canadian company that has set the industry standard in high-tech, automated, environmentally controlled greenhouses for over 30 years, has consulted on the design, engineering, and construction oversight of many of the world's most advanced greenhouse cultivation facilities. Larssen has been involved with over 1,000 projects around the globe.

Upon completion of the transaction, Larssen will be integrated into a newly incorporated subsidiary, Aurora Larssen Projects Ltd. (ALPS), focused on providing a unique turn-key service offering to Aurora and its domestic and international partners, that will over time provide 360-degree solutions for facility design, engineering, construction, support, maintenance, security, regulatory support, cultivation, genetics, as well as provide consulting and assistance in regard to meeting requirements for GACP cultivation and EU GMP certification. Thomas Larssen, the principal of Larssen, will serve as President of ALPS and will continue to oversee Aurora's cultivation infrastructure expansion.

Aurora selected Larssen to design, engineer, and oversee construction of its Aurora Sky facility. Larssen is currently involved with over 15 cannabis industry clients globally, including 5 Canadian licensed producers. The Canadian deals will be vetted by the company's management team. Any Canadian project deemed not to be in the best interest of Aurora shareholders will be notified that ALPS will no longer participate in such project. This process is expected to take no longer than 3 weeks.

Increases Ownership Position in Hempco

Aurora Cannabis and Hempco Food and Fiber Inc. (HEMP.V)(HMPPF) completed a non-brokered private placement for gross proceeds of $3.2 million. Hempco issued 10,558,676 units, at $0.3075 per unit, to Aurora. Each unit consists of one common share and one common share purchase warrant (at $0.41 until the second anniversary of the closing date).

The funds will allow Hempco to complete its new processing facility, implement its go-to-market strategy for new products, including its new line of animal feed products, and access new sales channels to further accelerate growth.

Aurora now owns approx. 33.6% of Hempco on a fully-diluted basis. The company has an option to purchase further shares from two of Hempco's principal owners, which, upon full exercise, would increase Aurora's take in Hempco to over 50%.

Outlook is Bright

Aurora Cannabis has been executing on all cylinders and we are favorable on the way the company continues to execute and work to create long-term value for its shareholders.

We are favorable on the recent developments and believe that they better positioned Aurora for long-term growth. Aurora continues to focus on increasing its production capacity, expanding its product line, and investing in strategic assets.