Aurora Cannabis (ACB.V: TSX Venture) (ACBFF: OTCQX) announced another strategic investment today after it created a 19.9% position in Hempco Food and Fiber (HEMP.V: TSX Venture). Aurora also will obtain an option to acquire shares from the majority owners of Hempco and increase its ownership interest to 50.1% on a fully diluted basis.

Hempco's line of packaged foods are sold under the brand Planet Hemp and are distributed in seven countries. They are one of the world's largest industrial producers of hemp and hemp products, and currently offers three primary product lines: bulk and packaged food products (i.e. protein powder, seeds, oil etc.), hemp fibre, and nutraceuticals.

During the six-months period that ended on February 28th, Hempco generated $4.5 million in revenue which represented a 136% increase over the prior year’s comparable period. Hempco is currently completing the construction of a facility less than 5 km from Aurora Sky. Upon completion, Hempco will double its current capacity to a total of approximately 225,000 kg per month of hulled hemp seed. Additionally, the facility is easily scalable and can be expanded to approximately 600,000 kg per month.

A Strategic Decision

Hempco's position within the hemp based nutrition space makes it a strategic partner and attractive acquisition candidate. Industrial hemp grown under contract to Hempco contains efficient extractable quantities of cannabidiol (CBD). Aurora expects the regulations that prevent industrial hemp producers from harvesting leaves, flowers and buds, which contain CBD to be revised to allow for the processing of it.

The market for CBDs in the form of capsules, oils, and topicals is expected to show significant growth, and Aurora considers the proposed transaction with Hempco to be a strategic initiative to enable market share dominance in this attractive segment.

Through its relationship with Radient Technologies (RTI.V), Aurora has access to technology that is capable of producing CBD-based products at large scale, thus providing the Company with a considerable competitive advantage in addressing this growing market when CBD extraction from hemp is allowed.

A Global Growth Story

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