During the last year, we have noticed increased interest in the Israeli cannabis market and this is a market that we have been favorable on since inception. The climate in Israel is ideal for cultivating cannabis and we are bullish on the industry due to the economics that are associated with it.
Earlier this month, we saw a spike in interest in companies that are levered to the Israeli cannabis market after HEXO Corp. (HEXO.TO) (HEXO) announced a supply agreement with Breath of Life (BOL), a leading Israeli cannabis company. The spike in interest also comes after Marijuana Business Daily reported that Israel surpassed Germany as the largest importer of medical cannabis flower in the world so far this year.
As a result of the increased interest in the Israeli cannabis market, we received a number of questions about Aurora Cannabis (ACB.TO) (ACB) as it relates to how the business is positioned to capitalize on the increasing demand for cannabis in international markets.
Aurora Cannabis was an early mover on the international cannabis market and is highly levered to the European Union (EU). Through a series of investments and acquisitions, the company has made itself a formidable player in the EU and this is an important aspect of the story. As it relates to the Canadian cannabis opportunity, the market has grown at a slower rate than expected and this has put additional pressure on Aurora Cannabis.
Going forward, the market is highly focused on how Aurora Cannabis is able to benefit from the increasing demand for medical cannabis in the EU. Based on the previous transactions completed by Aurora Cannabis, we would be surprised if it did not acquire an Israeli cannabis asset and this is an opportunity that we will continue to follow.
2020 has been a challenging year for Aurora Cannabis and we will monitor how the business is able to fare in the back half of the year. The name of the game for the company is execution and that is what the market is looking for. Aurora Cannabis needs to show that it can execute on previously announced initiatives as it does not have nearly as much cash on the balance sheet as it did in prior years.
If you are interested in learning more about how Aurora Cannabis is positioned to capitalize on the EU cannabis market, please send an email to email@example.com to be added to our distribution list.
Published at Thu, 16 Jul 2020 11:42:26 +0000