Pre-rolls are already an in-demand segment of the international cannabis market, and Aurora Cannabis Inc. is spending $7 million to buy some of the hottest pre-roll technology to make their own.
CannaRoyalty has an exclusive Canadian license to use and commercialize pre-roll technology from Wagner Dimas. The deal would transfer CannaRoyalty’s Canadian license for the Wagner Dimas technology to Aurora; in exchange, CannaRoyalty gets part of a licensed producer with shares that have risen nearly 300% in the past year.
Terry Booth, CEO of Aurora, says “This Agreement reflects Aurora’s strategy to continue broadening our high-quality product portfolio by expanding into value-add products for both the medical and adult consumer markets. Wagner Dimas has a proven record of producing many of the leading pre-roll brands in a number of mature cannabis markets, and we look forward to introducing this high throughput, high-quality pre-roll technology to the Canadian market.”
In 2017, pre-rolls made up 12% of total revenue generated from the adult consumer market in Washington State. That same year, the Wagner Dimas platform led to the creation of 5 million marijuana-filled joints and cones in California—a record for the state.
As one of the world’s largest and leading cannabis companies in the country, Aurora has the capacity for 430,000 kg per year, having the Wagner Dimas technology creates substantial competitive advantages over other pre-roll offerings regarding quality and style.
In an interview from earlier this year, Wagner Dimas co-founder and CTO, Mitchell Wagner, predicted both growth and consolidation in the pre-roll segment.
“We have a pretty inclusive approach, and encourage that in our licensing partners. The tech offers more pre-rolls than most brands can distribute, so it makes sense for local partners to manufacture for other brands with their own flower and distribution channels. It’s inevitably more efficient and inexpensive to run on larger economies of scale with production so that contract manufacturing will be the standard for most brands. Those who build powerful brands that can meet demand and grow will be success stories.”
Parker is a cannabis enthusiast to the core who shares a keen interest in listening to what others have to say and understanding what’s important to them. Those who know Parker know that his passion for health and wellness runs deep, and his love of Canada even deeper!