Aurora Cannabis (TSX: ACB) appears to be in the process of changing its business model. The company this morning, despite its capacities, announced a manufacturing agreement with The Valens Company (TSX: VLNS).
The arrangement will see Valens manufacturer a seasonal offering for the company, which is said to be a mint product that will be sold under the Drift Turbo brand. The agreement, following the success of this initial product, will then expand to additional products in the coming months.
The move to outsource manufacturing, even at this size, signals a change in processes at Aurora, whom historically has done production of its products in house via its numerous facilities. Commenting on the move, Miguel Martin, Aurora’s CEO, commented that the “strategic relationship is designed to unlock efficiencies as we seek to bring innovation to market with speed and differentiation that connects with consumers.”
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The transition to having seasonal offerings is also believed to be a first for the company, with the company planning a number of holiday themed products for the end of the year. The firm revealed it will also have a cranberry sauce-flavoured vape pen available for consumers next month for a limited time.
Aurora Cannabis last traded at $8.43 on the TSX.
Information for this briefing was found via Sedar and Aurora Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
