In another move to expand internationally, Alberta-based Aurora Cannabis Inc. (NYSE: ACB; TSX: ACB; Frankfurt: 21P) today began selling Pedanios 5/1 branded cannabis oils to pharmacies in Germany.
The move follows completion of several regulatory hurdles from both the German and Canadian sides. Following that announcement, Aurora’s stock was up just over 3% this morning.
Aurora’s Chief Global Business Development Officer Neil Belot commented on the company’s strategy behind moving into the German market with oil extracts:
The company already supplies dried flower products in Germany through Aurora Deutschland, which was recently rebranded from its former name Pedanios.
While operations continue to expand to meet increased consumer demand in Canada after recreational legalization arrived last year, major licensed producers such as Aurora have also focused on growing globally.
Latin America has consistently played a major role in those international plans, with Aurora acquiring both the Uruguay-based ICC Labs in September and then Mexican cannabis distributor Farmacias Magistrales SA at the end of 2018.
That international strategy has included trading on the US-based New York Stock Exchange (NYSE) for increased market presence and additional fundraising opportunities. Aurora applied to trade on the NYSE last year and began trading on the market officially in late October.
On the Canadian side, last week Aurora completed the acquisition of British Columbia-based Whistler Medical Marijuana Corporation, which was one of the very first companies to become licensed by Health Canada to cultivate medical cannabis.
Aurora will now assist Whistler in the construction and expansion of a second cultivation facility located in Pemberton, with a full operational capacity of 5,000 kg per year expected to arrive by the end of summer in 2019.
Aside from acquisitions and construction projects, Aurora is preparing to open what will be the most highly visible retail cannabis store in the country with a spot in the world-renowned West Edmonton Mall.
Scott’s Take – Smart Play By Aurora
Aurora Cannabis and Canopy Growth are leading the industry when it comes to volumes exported to Europe.
The more cannabis products Aurora can sell to Europe the better it will be for company profitability and by effect its stock. Dried flower sells for C$18-C$20 in Europe compared to prices below C$6 per gram in Canada.
European countries are still well behind Canada in opening up their markets to cannabis cultivation, giving Canadian growers a 1-2 year opportunity to ramp up exports and generate very attractive revenue and profits in the meantime. Overall, Aurora shareholders should be pleased with this move.