Aurora Cannabis Inc (NYSE: ACB) is having an incredibly strong start to the trading session this morning, and for good reason. The company recently announced the supply of medical cannabis to Luxembourg. On top of that, we also have news breaking this morning that Altria has agreed to make a significant investment in competitor, Cronos Group (NASDAQ: CRON), a huge bode of confidence in the cannabis sector as a whole. Today, we’ll talk about:
- What’s going on with CRON;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s Why ACB Is Flying
As mentioned above, Aurora Cannabis is having an incredibly strong start to the trading session this morning, running on two bits of news. The first is that the Luxembourg Health Minisry has selected the company to supply medical cannabis to Luxembourg. Of course, this news is overwhelmingly positive as it will help ACB to further expand its European footprint.
In the announcement, the company said that it received an initial purchase order from Luxembourg’s Division de la Pharmacie et des Medicaments. The initial order was for about 20 kilograms of cannabis. This news is significant as it marks the second time that ACB has received an order from European govenmental entities.
In other news, it was announced that Altria, maker of Marlboro cigarettes, has agreed to make a $1.8 billion investment in CRON, purchasing about 45% of the company with options to purchase up to a 55% stake. While this news wasn’t directly related to ACB, it shows a huge sign of faith in the cannabis sector as a whole by a company that has a great understanding for manufacturing, marketing and selling regulated substances. All in all, the investment proved to be a good move for the cannabis sector as a whole, with most in the green because of it.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to Aurora Cannabis, the recent news released has been positive. After all, it has received its second order from a European government body and the sector is seeing strong investor sentiment after the Altria investment in Cronos. So, it’s not surprising to see that the stock is making a run for the top in the market today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:30), ACB is trading at $7.82 per share after a gain of $0.77 per share or 10.92% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ACB as well as the rest of the stocks in the cannabis sector. In particular, we’re interested in following the changing regulation in the sector and how the leaders, like Aurora Cannabis, Canopy Growth, Cronos and Tilray take advantage of the changing tides. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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