Aurora Cannabis Inc (TSE: ACB)(NYSE: ACB) announced today that the company had completed its first shipment of medical cannabis to the Czech Republic after secured an export permit from regulatory bodies.
The expansion into the European nation marks the 21st country in which Aurora is operating in, further cementing their position as an international leader in the market.
The initial export request was placed by Czech Medical Herbs, a pharmaceutical wholesaler that will be shipping pharmacies in the country with medical marijuana and related cannabinoid products.
“This supply arrangement demonstrates our ability to enter into new jurisdictions as the partner of choice in new markets with strong barriers to entry, and is a testament to the strength and business execution of our European business development team,” said Chief Global Business Development Office Neil Belot. “The Czech Republic represents the 21st country in which we operate, and exemplifies how we are rapidly expanding our global footprint in the medical cannabis space. We look forward to building a long-term relationship with our customer, CMH, and supplying patients in the Czech Republic with our high-quality cannabis products.”
In the Czech Republic, medical cannabis use is legal albeit regulated, and since 2013 has been a viable form of prescription medicine available upon a doctors request. Under the country’s medical program, patients are allowed up to 180 grams of dry cannabis each month. Overall, the Czech Republic is known as one of the more cannabis-friendly European nations, with its capital Prague often being referred to as the Amsterdam of the East.
While the country of approximately 10 million people does have some domestic cannabis production, the majority of cannabis demand is satiated through international producers and importing products from EU cultivation facilities.
In addition to its international operations in Germany and other countries, Aurora has focused on an aggressive and strategic expansion through mergers and acquisitions, much like other big companies in the market.
Showing little response to the news, Aurora Cannabis stock plunged just under 3 percent today as markets continue to show little correlation in price movements with internal, corporate news developments.
Just yesterday, Aurora shares slumped another 6 percent on what was another poor day for key stocks in the sector as skepticism about Canadian producers abilities to keep up with demand continues to rise in the face of nationwide cannabis shortages.
Just this week, multiple provinces across Canada announced supply difficulties, with Alberta in particular stating that only 20 percent of the total cannabis ordered by the government has been fulfilled. While corporate executives remain positive that this supply situation will change, markets remain pessimistic about these promises.
Aurora Cannabis Inc Company Profile
Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 500,000 kg per annum and sales and operations in 21 countries across five continents, Aurora is one of the world’s largest and leading cannabis companies.
Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution. –Aurora