Categories Cannabis

Aurora, Canopy Growth to be the biggest gainers in Cannabis 2.0

Both Aurora Cannabis (NYSE: ACB) and Canopy Growth Corporation (NYSE: CGC) have reported disappointing quarterly results in the most recent quarter. Share prices have also mostly seen declines in the past six months for both firms.  

However, it may not be the right time to ditch these marijuana giants – Canada’s second round of legalization, fondly called Cannabis 2.0, holds abundant growth opportunities for both firms.

Canopy Growth Co-CEO Bruce Linton exits
Image by Rex Medlen from Pixabay

What is Cannabis 2.0?

About a year ago, Canada passed a revolutionary cannabis bill, legalizing weed’s use for medical and recreational purposes. However, only cannabis seeds, oil, and flower came under the ambit of legal recreational weed.

On October 17 this year, Canada will pass another round of legalization, which includes marijuana-infused edibles, extracts, beverages, and a few other products. Both Aurora and Canopy Growth have already been preparing to take on this new market for some time through research and investments. It’s time to reap the benefits from these efforts.   

According to Deloitte, the market for cannabis-based products, which includes gummies, chocolates and cookies, is set to touch CAD 2.7 billion annually. Meanwhile, these products are set to hit the shelves only by December as the legislation requires cannabis producers to notify Health Canada about the products two months before kick-starting sales.  

READ: The Cannabis-beverage industry is something you don’t want to miss this year

Aurora Cannabis

Aurora’s primary focus will be on vape products. The company already has a licensed CBD oil product line that is vape ready, which should give it a proper headstart in the industry. Separately, it has inked a deal with American vaporizer company Pax Labs to sell its products in Canada. The agreement could be extended to CBD-based vapors once Cannabis 2.0 is in place.

But Aurora’s efforts are not restricted to vapors. It’s Health Canada licensed Aurora Air facility will start producing chocolates, gummies, and other edible products starting December. Meanwhile, its 300,000-sq foot Aurora Polaris facility, which is expected to be functional by the end of 2019, will produce baked foods and beverages.

aurora cannabis q4 2019 earnings results

Canopy Growth Corporation

If there is any company that has been more focused into Cannabis 2.0 than Aurora, it’s none other Canopy Growth Corporation. Though Canopy Growth is also looking to take on the vape industry, its primary focus will be on beverages and edibles, driven by the partnership with Constellation Brands (NYSE: STZ).

It has a bottling plant functioning in Ontario, besides Hummingbird as an in-house CBD-chocolate manufacturer. The $9-billion investment it received from constellation brands last year was mostly used up to leverage Canopy’s food products ambitions.

canopy growth Q1 2020 earnings results

Looking beyond these two marijuana giants, Hexo Corp (NYSE: HEXO) and OrganiGram Holdings (NASDAQ: OGI) are two firms that are poised to benefit from Canada’s second round of legalization.  Keep a close tab on them.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

General Mills (GIS) Q4 Earnings: Key financials and quarterly highlights

General Mills Inc. (NYSE: GIS) reported fourth quarter 2022 earnings results today. Net sales increased 8% year-over-year to $4.9 billion. Organic net sales rose 13%. Net earnings attributable to General

KB Home (KBH): A look at the homebuilder’s expectations for the year

Shares of KB Home (NYSE: KBH) have dropped 35% year-to-date and 28% over the past 12 months. Last week, the company reported second quarter 2022 earnings results that surpassed expectations

Trade Desk’s stock can strengthen your investment portfolio. Here’s why

Trade Desk, Inc. (NASDAQ: TTD) has remained a much sought-after demand-side platform despite challenging market conditions and growing inflationary pressure, but its stock suffered heavy selling in recent months. The

Comments

  1. Pingback: teak furniture
  2. Pingback: ไฮโล
  3. Pingback: Heavy News
  4. Pingback: Heavy-R
  5. Pingback: ffh4x v41
  6. Pingback: ff tools hack apk
  7. Pingback: ThopTV APK Pro
  8. Pingback: cheap
  9. Pingback: kruideniertje
  10. Pingback: ff tools pro
  11. Pingback: Epaviste gratuit
  12. Pingback: Epaviste
  13. Pingback: épave automobile
  14. Pingback: Epaviste gratuit
  15. Pingback: Epaviste
  16. Pingback: Epaviste
  17. Pingback: Epaviste gratuit
  18. Pingback: Epaviste
  19. Pingback: Epaviste
  20. Pingback: naza
  21. Pingback: sexy
  22. Pingback: เว็บ123
  23. Pingback: เว็บ123
  24. Pingback: คาสิโน
  25. Pingback: thc edibles
  26. Pingback: Buy Weed Online
  27. Pingback: ps 5 for sale
  28. Pingback: WordPress Hosting
  29. Pingback: Kindness T-Shirt
  30. Pingback: iwermektyna
  31. Pingback: ivermectine
  32. Pingback: cali weed
  33. Pingback: ivermectin ken
  34. Pingback: ivermectin 200mg
  35. Pingback: DESERT EAGLE 1911
  36. Pingback: Glock 43x for Sale
  37. Pingback: trendy wallpapers
  38. Pingback: cialis for men
  39. Pingback: tropical
  40. Pingback: imverctin
  41. Pingback: curepod battery
  42. Pingback: Buy This Domain
  43. Pingback: durvet ivermectin
  44. Pingback: bahis siteleri
  45. Pingback: fishscale cocaine
  46. Pingback: buy 5meo dmt
  47. Pingback: classic books
  48. Pingback: stromectol 5 mg
  49. Pingback: nursing essay
  50. Pingback: مسيار
  51. Pingback: mango juul pods
  52. Pingback: delta 8 juul pods
  53. Pingback: Irish Whiskey
  54. Pingback: Buy This Domain
  55. Pingback: สล็อต
  56. Pingback: online life coach
  57. Pingback: speed test type

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top