Actionable insights straight to your inbox

Equities logo

The Amazon Prime of Canadian Cannabis

Aurora Cannabis is a medical producer and distributor in Canada that is looking to follow the same path as Amazon, but in the booming sector of cannabis.

When Amazon (AMZN) rolled out Prime in 2005, it forever changed eCommerce and consumer expectations. Unlimited two-day free shipping vastly reduced the time between when a customer clicked that “buy” button and when the product landed on their front steps. This made online buying for consumers significantly more convenient and efficient. Amazon’s commitment to infrastructure and speed created unprecedented demand for online retail. The company is now the first stop for most American consumers, and it is this commitment to infrastructure and the customer experience that put them at the top of the mountain

Aurora Cannabis (ACBFF:OTCQB–ACB-TSXV) is a medical producer and distributor in Canada that is looking to follow the same path as Amazon, but in the booming sector of cannabis. Aurora is a Health Canada federally licensed producer, and the only one located in Alberta province. Alberta’s low expenses and power rates allow Aurora to produce and ship cheaply. The company was the country’s fastest growing licensed producer in terms of sales and registered patients through 2016, and is in the process of completing Aurora Sky, an 800,000 square foot cannabis production facility.

Aurora Sky

Aurora Sky represents a huge leap forward for Aurora in regard to production and vision.

“We are very proud of Aurora Sky,” said CEO Terry Booth in December when Aurora issued the announcement. “This is not just because it’s the world’s most advanced cannabis facility envisioned, but it will become an important contributor to the local economy, both through investments and job creation.”

Cam Battley, the Executive Vice President of Aurora, said this about how the new facility would impact production: “At full capacity, we believe the Aurora Sky facility at Edmonton International Airport will be capable of producing in excess of 100,000 kg per year.”

Aurora Sky will leverage its technology and its close proximity to transportation to boost the customer service experience. The company is looking to expedite the shipping time for customers similar to how Amazon offers free 2-day shipping for its Prime members. As the demand for medical marijuana rises, Aurora Sky represents the hub that will allow the company to capitalize on this important moment in the sector’s history.

Canadian Legalization

The company is also preparing itself for Canada’s recreational legalization. One of the most important aspects of Aurora’s preparation was the completion of the Aurora Mobile App. The app allows convenient cannabis purchasing now for medical cannabis patients and should be able to be quickly adapted for recreational orders when the time comes. The app uses fingerprint authorization for secure identification protection and push notifications to alert buyers of new strains.

Aurora has also recently partnered with Radient Technologies (RTI:TSXV) to jointly develop superior and standardized cannabinoid extracts. “The potential to substantially increase our extracts production capacity while maintaining terpene profiles would further differentiate our Company,” said Booth in recent press.

Aurora represents a Canadian company looking to expand ahead of the booming Canadian market. Canada could see a huge surge in marijuana sales and the company’s Aurora Sky facility and well-tested app are aiming it in the right direction.

A weekly five-point roundup of critical events in fintech, the future of finance and the next wave of banking industry transformation.