Aurora Cannabis (TSX:ACB) (OTCQB:ACBFF) announced on Wednesday that the company received approval to produce cannabis softgel capsules at their 40,000 square foot Aurora Vie facility in Quebec from Health Canada. Production of the product will begin immediately in partnership with Montreal-based manufacturer Capcium Inc.
Aurora invested in Capcium to produce cannabis-based softgels with an agreement announced back in June. Today, Aurora owns 19.99 percent of Capcium. In a statement released in early June, both companies assured investors that approval for the high-volume production of their softgels would be ready by the end of summer.
"This investment in Capcium reflects our strategic objective to further expand our differentiated, higher-margin product offerings," said Terry Booth, CEO of Aurora in a statement at the time of the announcement. "Capcium's extensive know-how has enabled it to develop an advanced technology for the high-volume production of cannabis-based softgels. This provides us with a strong competitive advantage, positioning us well to build a leading position in the production and sale of value-added cannabis products globally.”
A different kind of cannabis capsule
Aurora also announced the launch of a new vegan, hardshell medical marijuana capsule, which will be released through their subsidiary CanniMed. With a 3:3 concentration of THC to CBD, Aurora calls the CanniMed Capsules “a game-changer” for patients looking for alternative delivery methods for potent medical marijuana.
Cannabis capsules are growing more and more popular among physicians. Recommending doctors can better regulate the cannabis dose in pill form and give their patients consistent, reliable results. Capsules are also a more discreet way to use marijuana. Patients can use cannabis without worrying about the stigma of smoking or vaping.
"While many people continue to use dried buds for medical symptom relief, there is growing global demand for alternative drug delivery technologies. Through CanniMed and our partnership with Capcium, we are well-positioned to lead in this segment of the Cannabis market,” Booth said in a statement.
Precision and predictability are two things Aurora hopes will transcend into the recreational marijuana market. They anticipate a demand for more encapsulated cannabis products. Moreover, their strategic agreement with Capcium emphasizes their expectation for science and technology as the driving force behind innovation within the cannabis industry.
What’s next for Aurora?
With a funded production capacity of over 570,000 kilograms, Aurora Cannabis is one of the world’s largest cannabis companies to date.
Last month, the company’s Aurora Mountain facility obtained its Health Canada Dealer’s License, which permits them to “produce, assemble, and sell cannabis oils and future novel, derivative products.” No new products or derivatives were officially announced beyond the new capsules yet, but the company claims that the license is incredibly important to expand their research and development capacities.
Having teamed up with noted cannabis companies like The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF) and Namaste Technologies (OTC:NXTTF), it’s likely that investors can count on new products hitting the market sooner rather than later.
The approval of Health Canada means Aurora Cannabis is well on their way to reinforcing their global supply chain for future markets. The Aurora Mountain Dealer’s License comes with export permissions that allow Aurora ample opportunities to ship new products from the facility throughout the global market. It could be good news for the cumbersome U.S. cannabis industry, which is still ironing out the kinks from recent product recalls and financial potholes.