Aurora Cannabis is a fast growing marijuana company that has stirred up the stock market. The growth it has experienced has separated it from its competitors, including Canopy Growth. The company at the moment is leading the industry in several areas, including the production capacity, international markets and is continuing to slash cost per gram to the point where it is expected to drop below a dollar a gram.
If the numbers keep rising and increasing the production rate to the point, it will be selling way more cannabis that produces positive EBITDA, within the next quarter. For example, with the vast amount of inventory its production capacity is expected to reach over 625,000 kilograms annually by the first calendar quarter of 2020, this will allow the company to have full flexibility to allocate its product into multiple areas that no one else has within the industry. No other company can compete with Aurora.
The Company, Aurora Cannabis, has also separated its self geographically, by segment and by their product, this allowes them to reduce its risk exposure to recreational pot. The demand is usually supplied in Canada; this will cause enormous problems for the companies that do not have other sections and markets that Aurora does supply.
In addition to their massive presence, the company also has the most significant number of other markets it competes with around the world, in a total of 24 countries. They also focus mainly on medical cannabis, which commands a higher price and margins, primarily in Europe.
While Aurora management has said it will continue to supply recreational pot for the Canadian market, it’s not reliant upon it for long term growth.
That’s important to take into consideration because in the last quarter it reported it had to hold back some of its inventory to ensure it would meet its medical cannabis demand. That resulted in the loss of recreational pot sales that could have boosted its performance in the quarter.
In addition to all its other massive advancements, the company is announcing its launch of a national public awareness campaign this coming fall, educating consumers, provinces, and retailers about the secure usage and consumption of these new derivative products.