The explosion of the cannabis industry in Canada has seen companies like Aurora Cannabis emerge as some of the biggest companies in the industry. Consequently, the company’s stock has also performed well since 2016. It is easily a favorite stock of many who have invested in the cannabis stocks. Since the beginning of 2016, Aurora Cannabis (TSX:ACB) (NYSE:ACB) stock has delivered an astonishing 2000% growth in stock price so far.
While it remains one of the biggest producers of cannabis, the company has also worked diligently towards a push into international markets. The latter factor has been particularly important in its climb as one of the most important cannabis stocks on Wall Street.
Production Edge For This Marijuana Stock
For any cannabis company to dominate the market it has to have a steady supply of the raw product and in that regard, Aurora is in a league of its own. Aurora has a massive production facility in Alberta that churns out thousands of kilos of cannabis every year. The company projects that it is going to produce 500,000 kilos of product every year by next year.
By 2022, the production estimate is 700,000 and that would make the company the biggest producer by a comfortable margin. Such large volumes will not only reduce the costs per gram for products but also allow Aurora to ink long term deals with other companies in the industry. On the other hand, it will also allow it to march into foreign markets without having to worry about any supply crunch.
Aurora is all set to potentially become one of the first major Canadian cannabis companies to have a big presence in foreign markets. That makes it another huge factor in the company’s dominance of the industry at large. The company currently has a presence as either a distributor or producer in as many as 24 countries across the world and that gives it a footprint in almost all major cannabis markets.
Considering the fact that the Canadian cannabis industry is all set to grow at a breakneck pace and competition is going to grow in the years to come, Aurora is in a suitable place to withstand that pressure. One of the bigger reasons behind that is its presence in foreign markets.