The countdown creeps ever closer. In only 15 days, on Oct. 17, recreational marijuana will be completely legal for adults to purchase throughout Canada. This makes Canada the first industrialized country in the world to have legalized adult-use weed, and puts the industry on track to generate billions of dollars annually, once it’s fully up to speed.
Though there are dozens of marijuana stocks for investors to choose from to potentially take advantage of this growth, none has been more popular (or polarizing) than Aurora Cannabis(NASDAQOTH:ACBFF). That’s because Aurora is expected to lead all growers in aggregate annual production, yet it’s not the largest marijuana stock by market cap (it currently sits at No. 3, behind Tilray and Canopy Growth Corp.).
It also just so happens that marijuana darling Aurora Cannabis reported its fourth-quarter and full-year 2018 operating results last week. And while Wall Street and investors are probably focused on the company’s 223% year-over-year Q4 sales growth, its plans to uplist to a major U.S. exchange, or its surprise profit of over 79 million Canadian dollars, there are 10 other things listed throughout its report that bear even more significance. If you’ve been monitoring Aurora Cannabis, or you own shares in the company, here’s what you really need to know.
1. Per-gram prices are up, but weakness was seen in oil pricing
Forget the top-line sales figure. Instead, pay attention to what’s going on with the price per gram of the weed that Aurora Cannabis is selling. During the quarter, Aurora recognized an average selling price for dried cannabis of CA$8.02 per gram, which was 18% higher than the fourth quarter of the previous year. As for cannabis oil, the price rose 5% to CA$13.52 per gram from the sequential third quarter, although it fell 24% from Q4 2017, where it went for CA$17.91 a gram.
Why the drop? More than likely it simply has to do with oils being somewhat rare last year and more commonplace now. Either way, Aurora Cannabis recognized a higher aggregate sales price per gram for its products during the fourth quarter, which helped push revenue higher…
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