The Marijuana Stock That Gained 150% In One Month – Marijuana Stocks
Aurora Cannabis (ACBFF) has generated an additional $1 billion in market value over the past month (Oct. 25 – Nov. 25). What this marijuana stock has achieved in such a short time period is nothing less than remarkable. The Canadian marijuana grower has seen its shares surge 150% in a month, 195% since the beginning of the year and 1,069% over the past two years. What is driving this stock sky high?
The company has been benefiting greatly from the increase in Canadian medical marijuana patient enrollment. In May, Health Canada reported medical patient enrollment was growing at a rate of 10% per month. Another driving force behind the company’s success is the anticipation that Canada is to become the second country in the world to legalize recreational marijuana by July 1, 2018. Recreational marijuana in the country will generate billions in additional annual revenue producing some solid profits for growers like Aurora.
Aurora has been preparing for legalization with its 800,000-square-foot Aurora Sky project, which will be the most highly automated grow facility in the world, remains on track and on budget for completion in mid-2018. Aurora Sky will produce over 100,000 kilograms of dried marijuana annually
Aurora’s stock price has gained after an unexpected quarter profit of $2.8 million. The company’s sales improved by 169% from the prior-year, as dried marijuana sales increased 69%, and new cannabis oil sales and exports to Germany certainly advanced sales. Also, the average selling price per gram increased by 30% from the prior year while growing costs decreased, improving margins.
Lastly, the most recent bid for CanniMed Therapeutics (CMMDF) in an all-share deal for $425 million, or $18.75 a share. If the deal is signed this marijuana merger would boast nearly a $2.6 billion combined market value. The acquisition of CanniMed combined with Aurora Sky increases the growing capacity to 130,000 kilograms of dried marijuana annually and roughly 40,000 actively enrolled medical patients.