Aurora Cannabis (TSE: ACB) recently signed a new deal with a technology company that didn’t exactly make worldwide headlines. However, the deal could certainly prove to be extremely beneficial to Aurora. The cannabis company now owns 5% of EnWave, a Vancouver-based technology company, which will open a number of doors for Aurora.
In addition to the minority ownership, Aurora now has exclusive rights to the Radiant Energy Vacuum (REV) drying technology owned and developed by EnWave. The technology will be available for use across all of Europe, except Portugal, and Aurora will also have a non-exclusive agreement to use the technology in Canada.
Aurora will also pick up another REV benefit. It will have the exclusive right to license the technology in Australia and across South America – except in Peru – provided Aurora meets certain minimum purchase requirements established by EnWave for the REV system.
The cannabis giant will have the right to earn a percentage of royalties for any of the sub-licensing agreements it establishes in Europe, Australia and South America. The details of those percentages were not published.
This is big news for Aurora because of what it means to the company’s production capabilities. Aurora CEO Terry Booth explains, “EnWave’s technology offers very significant benefits that further improve the economic returns on our Sky Class facilities.” In particular, he said, REV technology will provide the company with “industrial-scale flow-through, reducing working capital requirements, accelerating time to market from harvest, as well as increasing our ability to produce bulk-scale cannabis for extraction and use in derivative products.”
EnWave’s REV system is capable of reducing cannabis drying time from between five to seven days to under an hour. This is a huge advantage for any company and will help Aurora increase its production and extraction capabilities, as well as to reduce costs. The company is already taking advantage of the technology, installing a REV system at Aurora Sky and Aurora Sun in Canada and is expected to install a third at Aurora Nordic in Denmark.