Aurora Cannabis’ Close Ties to B. C. Firm Raises Serious Questions
The cannabis industry is a relatively nascent one but even then, certain companies have already emerged as the biggest players and Aurora Cannabis is certainly one of those. However, experts are now looking closely into the company’s relations with a cannabis extraction company based in British Columbia. It is being speculated that Aurora Cannabis might be using its relationship with the said company to pad its sales as well as profit figures from one quarter to the next. The questions have been raised by Craig Wiggins, who works for TheCannalysts, a research organization focused on the cannabis industry. Cannabis is considered as the third mind-altering substance after alcohol and nicotine.
The company in question is Radient Technologies Inc and has been regarded as a strategic partner by Aurora. In addition to that, Aurora has 12% holding in the company. Radient Technologies’ Chief Operating Officer Allan Cleiren is a member of the board at Radient. In the past, the CEO of Aurora, Terry Booth had been a board member as well. In the analysis done by Wiggins, it has emerged that in the quarter that concluded on June 30, Radient signed contracts with a range of companies to produce dried cannabis worth $21.7 million. However, Aurora managed to book $20.1 million in wholesale bulk cannabis revenues for the same quarter.
The increase reflected a whopping $18 million rise in revenues from the previous quarter, which reflects a rise of as much as 869%. Wiggins went on to add that an executive at Aurora had spoken about selling cannabis to Radient but at the same time, the company did not have an agreement to actually buy the extract. It goes without saying that the whole thing might not appear perfectly overboard and it remains to be seen whether the company actually responds to these claims from Wiggins.