Canadian pot producer Aurora Cannabis (ACB) on Wednesday said it would be able to meet demand for cannabis derivative products like vaping pens and edibles when Canada allows them this fall, even as the company’s facilities strain to pump out more cannabis oil. Aurora Cannabis stock rallied in afternoon trading, while other marijuana stocks were mixed.
“It’s all in place,” Chief Corporate Officer Cam Battley said of the company’s resources during its fiscal Q3 earnings conference call. Aurora reported fiscal third-quarter earnings Tuesday.
He added that Aurora wouldn’t need to wait for the opening of its Aurora Polaris facility — dedicated to churning out those products like vapes and cannabis-infused gummies, mints and chocolates — to provide adequate supply.
Aurora expects construction on Polaris to wrap up late this year. Canada legalized products like dry buds and oil for recreational use in October 2018. But it did not legalize edibles, beverages and vaping devices at that time. Those products are set to be legal by Oct. 17.
But with the next phase of legal products coming to Canada in the months ahead, the company said it hadn’t had time to scale up derivatives production, something it said would change as it adds new production capacity. The company’s massive Aurora Sky facility, it said, would also help speed extraction. So would its partnership with extraction company Radient Technologies, Battley said in an interview after the call.
Management on Wednesday said the company’s oil extraction facilities had been operating at “maximum capacity” for the past two quarters. And on Tuesday, Aurora, in its earnings release, said its average selling price per gram fell, partly due to “extraction capacity constraints.”