Shares of Aurora Cannabis (TSE: ACB)(NYSE:ACB) jumped today in response to a recent news announcement. The cannabis grower, which has been at the forefront of international expansion, let the public know that they were entering another European marketplace through the purchase of Gaia Pharm in Portugal.
As one of the few local license holders in Portugal, Aurora decided to purchase a 51 percent stake in the company, opening up another European market that it can sell its products in. The company, which will be renamed Aurora Portugal, has received approval to construct an EU GMP compliant facility in the country. Overall, Portugal’s population of 10 million represents a significant market and is an area that Aurora hopes to become a market leader in the future.
“We are very pleased to be entering yet another European market, and look forward to collaborating with our joint venture partners, the government of Portugal and the Portuguese medical community, to encourage the development of a rigorously regulated and safe medical cannabis system that is well supplied and accessible to patients,” said Aurora CEO Terry Booth. “With the addition of this new project, we are now active in 24 countries, which we believe represents the largest global footprint of any cannabis company. Aurora’s reputation in the medical cannabis sector, bolstered by the high quality of our products and our commitment to medical and plant research, provides distinct advantages in establishing significant market share in the rapidly growing European market.”
The announcement follows a previous press release on Monday where Aurora Cannabis received regulatory approval from Health Canada to build their flagship Aurora Sky and MedReleaf Bradford facilities. Together, it would be adding an addition 128,000 kilogram per year in cannabis output, with much of that increase likely going towards international markets. Currently, the cannabis company operates out of 24 countries around the world, with a first-mover advantage in many of them.
“The formation of this joint venture and the approval of the cultivation facility in Portugal are additional important steps in Aurora’s plan to develop a strong European manufacturing presence, ensuring that patients across Europe have access to the pharmaceutical grade medical cannabis they need,” added Dr. Axel Gille, Aurora VP of Business Development in Europe.
In response to today’s news announcement, Aurora shares increased a significant 6 percent, a significant increase for a company of such size. Overall, cannabis stocks moved upwards in response to a number of developments. Asides from Aurora, the other major mover in the cannabis market today was OrganiGram Holdings (CVE: OGI), which shot up 9 percent in response to another news announcement. So far, the past couple of days have been good for the industry overall.
Aurora Cannabis Company Profile
Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 500,000 kg per annum and sales and operations in 20 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