Aurora Cannabis Chief Corporate Officer, Cam Battley, gave an interview this week that possibly ended Aurora’s downward stock price trend with big announcements.
The second biggest producer of cannabis in Canada has been struggling to maintain its share value for the last few months, as the stock has been on a steady downward trend.
Ever since it hit $10 CAD on June 21st, the value of Aurora Cannabis stock dropped slowly week by week, until it hit its lowest point since December 2017 just six days ago.
So, what exactly happened, and how come the Aurora Cannabis stock dropped by nearly 50%?
Aurora Cannabis started the year very strong and made several big investments by acquiring their competitors: CanniMed and MedReleaf.
However, these two purchases were very pricey and large portions of the trades were made by giving the CanniMed and MedReleaf shareholders shares of Aurora, and only a small part of both trades was in cash.
Aurora also made some big plays in the European market, which perfectly positions them to become major exporters in countries with a significant population, such as Germany, Denmark, and Italy.
These countries are also known for their tourism, so cannabis tourism in these countries is something Aurora hopes will boost its profile as well.
The Aurora Cannabis stock slump is perplexing
Canopy Growth’s $5-billion deal is the hot topic these days, and Cam Battley appeared on the Midas Letter talk show to discuss Constellation Brand’s further investment in Canopy, as well as how the situation is unfolding for Aurora.
He spoke of how the above-mentioned investment in Canopy is not only an investment in one company but rather in the cannabis sector as a whole since the market made a huge jump on that day.
Battley also brought up the creation of Australis, a spin-off company in Aurora’s control which will be in charge of finding investment opportunities in the US cannabis sector.
Next on the subject line for the interview was the recently announced partnership with Alcanna, a Canadian liquor store chain with 245 stores, in which Battley has a 25% stake.
Aurora Cannabis CCO said that this partnership will be a big part of their strategy for the upcoming recreational legalization, as these locations may be the first on-the-ground stores Aurora will open.
Over the course of winter and spring, Aurora Cannabis significantly increased their presence on the international scene by making deals with various producers in the following countries:
- Malta – Owns and supplies CanvasRx
- Germany – Owns and supplies Aurora Deutschland
- Denmark – Owns and supplies Aurora Nordic
- Colombia – Owns and supplies MED-Colombia
- Australia – Has 23% stake in Cann Group
Aside from those deals, Aurora Cannabis has won tender offers to supply medical cannabis programs in both Italy and South Africa.
Battley pointed out that these partnerships and subsidiaries are still in play, and not only that but they are kicking into higher gear as we speak, and constantly increasing sales.
Aurora Cannabis is also in the process of increasing production within the Canadian borders with its Aurora Vie facility which just recently received a sales license.
He also said that the sales license for the Aurora Sky facility, their mega-production factory, will be coming very soon and that they’ve already had a harvest and started stockpiling the product in the facility.
Lastly, the MedReleaf facility in Markham received its EU GMP certification, which means that Aurora will soon have another facility which can legally produce and ship products to Europe.
Battley also addressed the question of whether Aurora Cannabis will be entering the infused-drinks market, which he confirmed they will be doing. However, he didn’t put a date on it.
So, the question why the Aurora Cannabis stock has been tanking for a while is a very confusing one, once you see all these achievements listed in one place.
Perhaps there is something going on behind closed doors that we aren’t aware of, and the industry experts know far too well.
Whatever it may be, Aurora Cannabis stock is now trading at fairly cheap prices and you won’t get many other chances to buy it at this price.
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