In this market news, Aurora Cannabis Inc. (TSX:ACB), one of the Canadian marijuana stocks, said it has completed the first shipment of medical cannabis products to the Czech Republic
SmallCapPower | November 29, 2018: Aurora Cannabis Inc. (TSX:ACB), one of the Canadian cannabis stocks, Tuesday announced that it has completed the first shipment of medical cannabis products to Czech Medical Herbs s.r.o. (CMH), a Czech pharmaceutical wholesaler, which in turn will supply pharmacies throughout that country. The shipment expands Aurora’s international presence to 21 countries. As regulations move in a favorable direction for medical cannabis in several countries, large cannabis producers such as Aurora Cannabis continue to focus on international expansion as their key growth strategy.
Czech Republic legalized medical cannabis in 2013 and allows specialized physicians to prescribe a total of 180 grams of dry flower product per month per patient. With limited domestic production, imports from federally-licensed producers with EU GMP cultivation facilities, such as Aurora Cannabis, are the primary source of medical cannabis for the country.
Aurora Cannabis Chief Global Business Development Officer Neil Belot said, “This supply arrangement demonstrates our ability to enter into new jurisdictions as the partner of choice in new markets with strong barriers to entry and is testament to the strength and business execution of our European business development team.”
Aurora Cannabis also announced recently its first-quarter 2019 financial results, in which its revenue soared 260% to $29.7 million. The Company’s gross margins of 70% was up 12% year over year, although down by 4% on a quarter-over-quarter basis.
As well, Aurora Cannabis recorded a 59% quarter-over-quarter increase in general and administrative expenses, along with the nearly 100% rise in sales and marketing expenses from the previous quarter.
Aurora Cannabis is one of the world’s largest cannabis producers with a funded capacity of more than 500,000 kg per annum. Aurora Cannabis stock currently trades at a market cap of $7.8 billion with a price-to-book multiple of 1.6x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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