On April 18, 2019, Aurora Cannabis (TSX:ACB) (NYSE:ACB) finalized its contract with the German Federal Institute for Drugs and Medical Devices. With the help of this announcement, Aurora stock is in the green Thursday, trading up nearly 2%. Tuesday's announcement may have played a part as well, however.
Let's dive in.
Aurora Stock Moving Up on News
Earlier today, Aurora Cannabis announced two things: first, its public appeal process related to the German marijuana production tender is complete, and second, its contract with the German Federal Insitute is also now complete. "We are thrilled with the positive outcome of the tender process," said Chief Global Business Development Officer Neil Belot.
Shortly after the news was released, Aurora stock moved into the green. According to Yahoo Finance, as of 12:55 PM, Aurora stock is trading at $12.07, which puts it up 1.05%. Earlier in the day, Aurora stock was closer to 2%.
Why, though? Why did Aurora stock react relatively positive to the news? What's the big deal? Well, there are a few things to note.
What We Know
According to NewsWire, the recently acquired approval will allow Aurora Cannabis to commence construction in Leuna, Germany next month. The cannabis company will be building a new indoor cannabis production facility. Reportedly, the new Leuna cannabis facility will be able to produce a minimum of 4,000 kg over a four-year time frame.
The Aurora team is "excited to start construction," said Belot, and they forecast that its latest production facility will be complete "within 12 months of groundbreaking."
Of course, this is an exciting time for Aurora Cannabis. Aurora stock is benefitting from the news, and it shows that the Edmonton, Canada-based company is internationally expanding its business. But it's also good news for the German community.
What This Means for Germany
The new Aurora Cannabis facility will do two things for Germany. First, it will provide "German medical patients with a local supply of high-quality, medical grade cannabis," according to Belot. Second, it will also bring more (and new) jobs to the labor market in Germany.
Today aside, Aurora Cannabis has had a bit of a comeback week, which may have also played a role in where Aurora stock is sitting today. On Tuesday, April 16, the company said it'll purchase shares of Hempco Food and Fiber that it doesn't already own. This announcement sent Aurora stock up 0.7% in premarket trade, after falling and closing at a 1-month low on Monday.
Do you have any predictions for the new Aurora Cannabis production facility in Germany? What about Aurora stock? Do you think the cannabis stock will continue trading in the green or will it hit another low next week?
Let us know what you think in the comments below!
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