The marijuana industry has seen quite a large boom over the course of the past several years. With legalization happening nationwide and around the world, there has never been a better time to get into the cannabis industry. Two of the larger companies in the space, Aurora Cannabis (NASDAQOTH:ACBFF), and Aphria, (NASDAQOTH:APHQF), have been at the forefront of the Canadian marijuana industry, and have helped to usher in a new movement of large cannabis corporations in the public eye.
Both of these Canadian companies have seen tremendous amounts of growth over the past few years, but the gains from Aurora have been some of the largest in the entirety of the industry. Both of these stocks look as though they have a bright future ahead of them, but there are many similarities and differences between the two.
Aphria has been quite large in the marijuana industry for a long time and there are two primary reasons why that is the case. One of the reasons is the rising medical marijuana demand throughout the world. With the advent of legalization happening throughout America and Canada, it seems as though the demand for cannabis is becoming higher than ever. The other reason is the high amount of potential for recreational cannabis. Recreational cannabis is one of the newest things in the industry but there is a giant opportunity for any company that can meet some of the high demands for the market. Aphria has been working to supply this high demand and has since become a licensed supplier of medical cannabis throughout Canada.
Business has also been quite good for Aphria throughout the market. After the quarter ended back on November 30th, Aphria posted surprisingly solid growth reports with a year-over-year sales growth of around 63%. The companies revenue is however, still low at around $8.5 million, with a market cap of just under $2 billion. The growing international market for cannabis has been one of the primary reasons that Aphria has been able to sustain such substantial growth. Aphria recently announced the acquisition of the company Nuuvera, with agreements to supply medicinal cannabis around Australia. The addition of Nuuvera will help give Aphria much needed exposure throughout the large German market and in other countries abroad.
Aurora Cannabis is a company that is positioned similarly to Aphria, but there are several key differences. Aurora’s medicinal cannabis market is almost $11.7 million, which is triple what it was in the prior year long period. Aurora also has quite a large stance over the international medicinal marijuana market with one fifth of their sales made in Germany by a subsidiary of the company known as Pedanios. Aurora also has managed to maintain quite a large position throughout Australia, Denmark and Italy. One of the largest pieces of news to come out of the company was their recent acquisition of CanniMed Therapeutics. Although the company originally bought against being purchased by Aphria, the acquisition was made for around $4 billion which is quite substantial.
Buying CanniMed is only one part of Aurora’s plan to help be one of the top players in the Canadian marijuana industry. Aurora has stated that they expect they will be able to reduce as much as 240,000 kilograms of cannabis with an additional almost 20,000 kilograms due to the acquisition mentioned prior. With so many new things happening throughout the world of Aurora, it seems as though the company is positioned to grow substantially. The hopes are high that the cannabis industry will be able to fully maintain its high amount of growth throughout the next coming years as marijuana is legalized domestically and abroad.
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