Aurora (ACB)

History of the Company

Aurora Cannabis Inc. was formed in 2013 in Alberta, Canada by four partners; Terry Booth, Steve Dobler, Dale Lesak and Chris Mayerson. They started from scratch by buying a piece of land, and building tailor made cannabis-growing facilities on it. Alberta was chosen for its low corporate tax regime and farming-friendly credit scheme.

Alberta is one of the Prairie States of Canada, with a strong agricultural base. Aurora was founded to farm cannabis as a cash crop. The partners predicted a forthcoming boom in cannabis production due to liberalization of drug laws in Canada and some US cities and states.

Aurora obtained a federal license to grow cannabis in 2014. With the raw material, they sell non-combustible cannabis products for medicinal use. They obtained licenses from the Canadian government to produce cannabis oils in 2016 and began doing so the next year. As of 2017, Aurora has four separate oil products on the market.

The company acquired a German distributor, a Canadian outreach business, an indoor light manufacturer and a greenhouse engineer / design consultant. As of January 2019, Aurora is the NYSE’s second most valuable cannabis producer.

Trading Aurora: What You Need to Know

  • Aurora opened at $0.90 USD on the NYSE on 11 July 2014. This was before they obtained their growing license, and before their other sales licenses from the Canadian government.
  • The price remained steady until August 2016, when interest began to sharpen. On 18 November 2016, it had reached $2.14 USD, a level it more or less maintained until November 2017.
  • From the start of that month, interest in Aurora rose very sharply. Its value more than doubled in November 2017, rising to $5.92 on 1 December.
  • By 5 January 2018, Aurora’s share price was $10.61 USD. This started something of a volatile year, as Aurora competed with other cannabis companies, notably Tilray. Both of these companies benefited and lost thanks to speculation as to the intentions of drinks giants Coca Cola and PepsiCo. With the legalization of cannabis production in Canada, and its importation into the USA, these were hoped to get involved in the non-combustible cannabis market. They did not, however.
  • Aurora shares reached their fourth highest value of 2018 on 12 October, when they were worth $10.52 USD. From that point, they began a steep decline, along with those of other cannabis producers.
  • As of 28 December 2018, Aurora’s NYSE share price was down to $5.23 USD.
  • With its investment in infrastructure and European distribution partner, Aurora is expected to outperform Tilray and every other cannabis producer other than Canopy Growth in 2019.

Anyone wanting to invest in Aurora stocks should analyze the medicinal cannabis market carefully first.

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