I posted this because it is a comparison to Aleafia's outdoor growing where they have not provided data regarding how many harvests they can have during Canada's outdoor growing season. Even though their cost per gram is only 20¢ outdoors, I believe they only have one harvest per year. That's a big limiting factor.
At Aurora each harvest is about 12 weeks, or 4 harvests a year. Still, Aurora's cost per gram is about $1.14. That's significantly higher. It's probably why Aleafia is going to be profitable years before ACB.
Rob Kelly, Director, Investor Relations 2019-09-26
Our world-class Aurora Sky facility in Edmonton has been built to define the future of cannabis and we’re excited to show you a glimpse of what we’ve developed to power our premium cannabis products.
“We are maximizing the use of technology at Aurora Sky to boost production and ensure consistent quality of our products” says Cam Battley, Chief Corporate Officer of Aurora Cannabis.
High-quality cultivation is the foundation of Aurora’s business and has always been our primary focus in producing the best product for our medical patients and consumers. Since its inception Aurora has always been focused on product quality and Aurora Sky takes that focus to the next level.
Located near the Edmonton International Airport, Sky is the Company’s most technologically advanced production facility with 16 flower rooms that make use of both the power of the sun via a glass roof, and state-of-the-art automation to ensure precise control of growing conditions in the production of medical cannabis.
Aurora’s Sky Class facilities enable the company to realize significant economies of scale, and this level of production supports Aurora’s financial growth strategy. Our fourth quarter results illustrate the success story to date.
“Our cash cost to produce in Q4 decreased 20% quarter-over-quarter to $1.14 per gram from $1.42 per gram, and revenues were up 349% year-over-year,” says Battley.
Each of the flower rooms at Sky is 34,000 square feet and feature advanced climate control, custom irrigation systems and fully integrated computer monitoring systems. Spanning 800,000 square feet, Sky is 20 times the size of Aurora’s first production facility, Aurora Mountain.
“We’ve invented 21st century cannabis production,” says Battley. “and we are going to take this technological approach to cannabis production globally.”
The glass roof at Sky diffuses the light when the sun is directly overhead while built-in controls maintain other environmental variables. For example, the automation system in each flower room at Aurora Sky includes self-adjusting screens and lighting to ensure the optimal amount of light reaches every part of the plant canopy.
“This application of technology allows Aurora to produce high-quality cannabis for the medical market at mass scale to serve both the Canadian and global market,” says Battley. “We have the highest level of production efficiency per square foot in the global cannabis industry.”
To date, Aurora has 15 production facilities located in Canada and around the world, strategically situated to address current and emerging cannabis markets worldwide.
Big news we all missed...and WOW, I am very confused...They are buying $10 million of stock at $3.10 per share. Details will follow later. This appears to be huge news.
We need to figure it out. I have to be missing something here or the entire STREET missed this too. (see blue below) ?????????
Aleafia and Serruya Family to Enter Cannabis Retail Joint-Venture for Launch of One Plant™
Major Retail Operation Backed by Family behind Iconic Yogen Früz, Second Cup Brands
TORONTO, Sept. 25, 2018 (GLOBE NEWSWIRE) -- Aleafia Health Inc. (TSXV: ALEF; OTCQX: ALEAF, FRA: ARAH) (“Aleafia“) or (the “Company“), has entered into a letter of intent to acquire a 51 per cent stake in One Plant™, an adult-use cannabis retail operation led by members of the Serruya Family (the “Serruya Family”), including Aaron Serruya, the president of International Franchise Inc., which has over 4500 franchise locations in over 50 countries. Serruya Family has also been a leading force in the cannabis industry as early investors of Aphria (“TSX:APH”) and the majority shareholder of Liberty Health Sciences (“CNSX: LHS”). Together, the two parties will form a joint venture (the “JV”).
The JV marks the first phase of a multiphase strategy that will see Aleafia enter the adult use Cannabis industry and related retail operations in Canada, joining Aleafia’s two existing business pillars; cannabis cultivation and medical clinic operations. Pending standard due diligence to be completed within 14 days, the execution of definitive agreements and regulatory approvals, the acquisition provides Aleafia the tools to become one of the largest national adult-use cannabis retailers.
JV Highlights:
* Backed and supported by Aaron Serruya, president of International Franchise Inc. which has over 4500 quick service restaurant locations in over 50 countries
* Initial launch to include over 20 retail locations in Ontario, with a subsequent expansion plan across Canada
* Licensing agreements with established international cannabis brands upon store launch
* Turn-key operation with ready-made store design and retail systems in place
* Intellectual property including genetics and packaging
* Vertical integration, with Aleafia cultivation facilities producing cannabis for processing, extraction, packaging and eventual listing in retail locations
Under the terms of the LOI, Aleafia and Serruya Family will establish a new corporation for the JV that will be owned 51% by Aleafia and 49% by Serruya Family. Aleafia will purchase its 51% stake in the JV company by way of the issuance of five million Aleafia shares to the Serruya Family. Aleafia will also contribute to the JV $5 million in cash and cannabis product on industry standard wholesale pricing, among other contributions. Complete details of the JV will be outlined in a definitive shareholders agreement to be entered into between Aleafia and Serruya Family.
The board of directors of the new JV company will consist of two (2) nominees of Aleafia, two (2) nominees of Serruya Family and one (1) independent, and the management team of the JV company will be determined jointly by Aleafia and Serruya Family.
Private Placement
In addition, Aleafia is pleased to announce that The Serruya Family will complete a strategic investment through a non-brokered private placement of $10,000,000 in Aleafia common shares at a price of $3.10 per share.Closing of the private placement is expected to occur on about October 15, 2018, subject to definitive agreements and TSX Venture Exchange acceptance, among other conditions.
“This joint venture positions Aleafia to capture significant national market share in the retail adult-use cannabis market in Canada. The Serruya family are excellent retail entrepreneurs with a proven track record in quickly scaling their businesses to global proportions,” said Aleafia CEO Geoffrey Benic. “Our team is very excited to work with the Serruya family to achieve the same result in the global adult-use cannabis market.”
“The Serruya family is pleased to joint venture with Aleafia’s strong management team in building and scaling a retail cannabis chain with immediate national reach and global expansion plans,” said Aaron Serruya, managing director of Serruya Private Equity. “We are excited to once again play an early role in building one of the world’s largest cannabis companies.”
See more below in bluehere:
About Aaron Serruya:
Aaron Serruya began his career at age nineteen as the other co-founder of Yogen Früz®. Aaron was also involved at various levels, in Coolbrands® and Kahala Brands®. Having over three decades of experience in the retail franchising sector, in addition to his position as a Managing Director at SPE, Aaron is currently the President of International Franchise Inc. (home of global brands such as Yogen Früz®, Pinkberry® and Swensen’s® Ice Cream), which has over 4,500 quick service restaurants worldwide, in over 50 countries. He has also been a leading force in the cannabis industry, as an early investor in one of the largest global cannabis companies and the current majority owner of Liberty Health Sciences.
See more here:
Aleafia to receive $10 million investment as part of deal to take majority stake in Serruya-led One Plant
Canada-based Aleafia Health Inc. ALEAF, -0.61% ALEF, -1.09% said Tuesday it will receive a strategic investment through a private placement of $10 million investment in Aleafia common shares from investors, the Serruya Family, for $3.10 per share. The closing of the private placement is expected on Oct. 15, which is two days before the expected full legalization of cannabis in Canada. The investment is part of a deal for Aleafia to buy a 51% stock in Serruya-led One Plant, which allows Aleafia, which currently has cannabis cultivation and medical clinic operations, into the adult-use industry and related retail operations. After the deal closes, the companies will form a joint venture with over 20 retail locations in Ontario. Aleafia will contribute $5 million in cash to the JV and cannabis product at industry standard wholesale pricing. Aleafia's OTC-listed shares in the U.S. were still inactive in premarket trade. They have rocketed nearly five-fold (up 378%) over the past three months, while the S&P 500 SPX, +0.80% has tacked on 7.5%.
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