Canadian cannabis companies have been increasingly focused on expanding internationally. While there is still significant market potential in the country, investors are beginning to lose a bit of the excitement in the Canadian cannabis sector six months post-legalization. For this reason, more companies and investors are eyeing other markets such as the U.S., where there remain many states where cannabis remains illegal but are expected to transition soon.
Other markets, such as Europe and Latin America, are the next go-to locations for the world’s leading companies outside of North America. One of these, Aurora Cannabis (TSE: ACB)(NYSE: ACB) announced today that it has begun selling their cannabinoid (CBD) infused oils in German pharmacies.
Aurora, in addition to its position as a Canadian market leader, is also the top cannabis company in Germany at present, having supplied the country with dried cannabis flower since December 2015 and with Canadian-grown cannabis since 2017. Overall, the new CBD-oils have become the first derived oil product that’s compliant with German regulations for in-pharmacy preparation. Overall, the country is seen as one of the biggest potential medical cannabis markets outside of North America.
“Having established early more advantage in selling cannabis oils in Germany, we are exceptionally positioned to extend our market leadership and accelerate growth of our European operations,” said Neil Belot, Aurora’s Chief Global Business Development Officer. “As our global production capacity continues to ramp up, we are able to strategically allocate more product from our EU GMP certified cultivation facilities to this higher margin market that continues to be significantly undersupplied.”
Aurora remains arguably the leader when it comes to international expansion, operating in many countries all across the world as the company continues to expand aggressively both domestically and internationally.
Last week, Aurora jumped almost 12 percent when it was rated as the top stock in the cannabis industry. Cowen & Co, an investment bank, issued a research report recently which marked it as the first time Wall Street began coverage of the marijuana market at large. The firm ended up picking Aurora Cannabis as their top industry pick, dethroning it’s next largest Canadian competitors, Canopy Growth Corp (TSE: GCG)(NYSE: WEED).
“The company’s large cultivation footprint, capable of producing over 575,000 kilograms, provides ACB with the necessary infrastructure to weather early storms in adult use while continuing to grow higher-value revenues in the medical market,” wrote analysts at the time.
In response to today’s news, Aurora Cannabis shares increase 2.4 percent today, a reasonable increase for a company of such size. For the rest of the marijuana sector, today was a mixed day for the market at large.
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