Aurora Cannabis shares have a positive outlook
07 Dec 2018
Aurora Cannabis Inc. got a license for selling medical cannabis in 2014. Currently, the company has got eight licensed production facilities in 18 countries producing over 500,000 kg of cannabis yearly. According to its market cap, Aurora Cannabis ranks second among the companies in this sector, the first being Canopy Growth Corp.
In 2018, the sale of cannabis for recreational purposes was legalized in Canada, with sales starting on 17 October. There has been an increased demand for this product among the Canadian population, and some regions of Canada are even experiencing a shortage of cannabis.
Currently, Aurora Cannabis Inc. intends to increase its cannabis production capacity. A new plant in Alberta, capable of producing 100,000 kg of cannabis per year, is being constructed in Alberta.
Since October 2018, the company's shares have been traded on the NYSE as ACB. The current price of Aurora Cannabis shares in New York is just a bit over $6. The stock price increased sharply soon after the IPO amid a surge of interest in this sector, which was largely driven by the start of recreational cannabis sales: at that time, the company's shares were worth almost $12. Then, the market hype calmed down; Aurora Cannabis fell first to $5.90, rising after this to $7-$8 temporarily, and finally stabilizing to just above $6 most recently.
The hype in the cannabis sector is likely over. That being said, a possible increase in production capacity could turn out promising.