Aurora Cannabis (TSX:ACB) (NYSE:ACB) is in the red right now. ACB stock is down over 5% on the NYSE despite the company’s monumental export of CBD oil to the UK.
The news should be heralded by investors, so perhaps ACB stock is down because anxiety abounds before the company’s fiscal Q2 earnings report later today.
ACB Stock: First Shipment to the UK
Aurora’s first shipment of cannabis oil to the United Kingdom was successfully completed. So much so, that the product has already been dispensed from a pharmacy.
The shipment makes Aurora one of Canada’s first licensed marijuana producers to export product to the UK.
According to the company’s press release:
“Being one of the first Canadian companies to commercially supply cannabis-based medicines into the UK under the new legal framework reflects Aurora’s ability to do business in international markets that have complex and evolving regulatory systems […] Aurora continues to grow its international footprint, which now includes the UK, a country with a population of approximately 66 million people.”
In the UK, specialist doctors are permitted by law to issue prescriptions for cannabis-based medicine. Its cannabis regulations are extensively tighter than Canada’s. But now Aurora is looking to enhance its UK operations moving forward having successfully navigated the UK’s legal framework.
ACB Stock: Q2 Predictions
Aurora’s Q2 report will be its first quarterly results posted since the legalization of recreational marijuana in Canada.
Aurora is expecting Q2 revenue in the range of $50–55 million CAD, which is $12 million less than analyst expectations. When compared to the prior year period, revenue is expected to jump above 327% and over 68% sequentially.
Is the Shopping Spree Over?
The company follows the “Growth through acquisition” strategy. With 16 acquisitions since late 2016, it follows that strategy like a shadow.
Investors must be wondering if the shopping spree is over, but that’s not forgetting how acquisitions have also helped to drive ACB stock movement.
For example, ACB stock has grown over 50% this year already. This can be attributed to the Whistler Medical Marijuana acquisition closed in mid-January.
What do you think about Aurora’s first shipment of CBD oil to the UK?
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