Aurora Cannabis

Founded in 2013, Aurora Cannabis Inc. is a Canadian licensed cannabis producer, mostly involved in the medical cannabis industry.

In the last couple of years, many countries legalised the recreational use of cannabis. As more countries are expected to follow the trend, the global demand as well as the production capacity will be pushed higher, supporting weed-related growth as well as its stock prices.

The latest example is Canada, which legalised the recreational use of marijuana in October 2018. According to ProCon.org, there were also 33 legal medical marijuana states, as well as 10 legal recreational marijuana states in the U.S. in 2018.

The company works on supporting its growth via differentiation and diversification through “an expanding constellation of subsidiaries and strategic partnerships” that will help answer the growing demand for both medical and recreational marijuana.

The Adult Consumer Use market in Canada is a rapidly growing market, and the company already has four active brands within the segment: Aurora, Altavie, San Rafael 71, and Woodstock.

This segment also requires expanding production capacities, as well as an international expansion through worldwide facilities. With a fully production capacity of over 500,000 kilograms per year, Aurora is one the second largest cannabis companies after Canopy Growth Corp.

Trading Aurora Cannabis

  • Aurora is listed on the Toronto Stock Exchange under the ticker symbol, ACB. It started trading on the New York Stock Exchange at the end of 2018 with the same ticker name.
  • As the Canadian recreational market opened in October 2018, Aurora Cannabis appears to have great prospects for growth and could easily become one of the top market leaders in Canada, pushing its stock price higher.
  • Capacity and areas to ship are two critical elements of success in the cannabis industry. Aurora is in good shape, as the company claims that it will have the largest production capacity of all marijuana producers by 2020, and that its sales and operations are currently achieved in 22 countries across 5 continents.
  • Diversification is a key growing concept for the company. It aims to broaden its offering through many subsidiaries and strategic partnerships (Anandia Laboratories, Agropro UAB, CanniMed, Cann Group, Alcanna, etc.) in order to be involved in multiple market segments. This in turn, will support the company’s further growth.

The cannabis industry may be in its early stages, but trading medical marijuana-producing and distributing companies, as well as other weed-related firms, looks to be a promising investment. It allows traders to take advantage of many trading opportunities in one of the fastest-growing industries. If you decide to delve into this area, always make sure to consider money management tools that can help you better mitigate your trading risk.