Cannabis stocks over the past few weeks haven’t been doing all that well. Relatively weak quarterly results have helped push shares down to close-to-record lows, with giant cannabis stocks feeling the brunt of investor bearishness especially so. While this downward trend hasn’t seemed to stop, there was a bit of good news for one of the industry’s top giants. Aurora Cannabis (NYSE: ACB) announced on Monday that it had received approval to sell CBD products in Ireland.
Aurora Cannabis is arguably the top company in the world when it comes to international partnerships, boasting one of the highest number of partner countries in the industry, with only its rival Canopy Growth (NYSE: CGC) coming close. This recent piece of news adds Ireland to Aurora’s already impressive list of countries it works with. The announcement specified that Aurora is the first company to receive the right to sell a medical marijuana product in the country, in this case, a type of CBD-oil to help patients with a number of systems.
“Aurora is pleased to be able to assist patients who are seeking treatment with high quality EU-GMP (good manufacturing practice) certified pharmaceutical-grade medical cannabis in Ireland. We are very proud to be one of the first approved suppliers of medical cannabis under the MCAP,” read an official statement from Aurora Cannabis on Monday.
Under new medical marijuana laws in Ireland, physicians can prescribe their patient’s medical cannabis products if they exhibit symptoms including chemotherapy-induced nausea and vomiting, spasticity that’s associated with multiple sclerosis, as well as severe, treatment-resistance epilepsy. This new law, the Medical Cannabis Access Programm (MCAP), was passed recently in June 2019 and opens the country to cannabis companies from around the world looking to provide their medical marijuana products.
Despite this piece of good news, shares of Aurora Cannabis continued to fall over the course of the day, albeit to a lesser extent than the rest of the market. The stock fell by around 3% on Monday, extending what’s already been a fairly rough decline for the company. Aurora has given back as much as 40% of its market value over the past month alone as shares continue to fall to rock bottom prices.
However, many analysts are still optimistic about Aurora’s potential. Out of the 18 or so analysts covering the stock on Wall Street, nine of them have “buy” ratings on the stock, while seven have a “hold” and two have a “sell.” The idea is that now that pot stocks are trading so low, they are bordering on becoming potential value investments. Time will tell whether this proves to be the care or not, but many long-term investors are getting swayed by these arguments.
Aurora Cannabis Company Profile
Aurora Cannabis Inc., headquartered in Edmonton, Canada, cultivates and sells medicinal and recreational cannabis through a portfolio of brands that include Aurora, CanniMed, MedReleaf, and San Rafael ’71. Although the company primarily operates in Canada, Aurora has expanded internationally through medical cannabis exporting agreements or cultivation facilities in more than 25 countries. – Warrior Trading News