Canada’s #2 cannabis stock just announced two new acquisitions…
They are the cannabis industry’s 11th and 12th deals in the last two years!
Honestly, these “buyouts” are happening . . .
EVERY. SINGLE. WEEK.
Aurora Cannabis (OTC: ACBFF) is buying 100% of a small Eastern European hemp producer called Agropro and a processor and distributor called Borela.
Agropro has 4,000 acres under contract and plans to produce 1 million kilograms of organic hemp.
Plus, the company has the option to double the production in Lithuania, Latvia, Estonia and Poland.
This gives Aurora ownership of the largest organic hemp company in the European Union.
Industrial hemp is expected to grow to become a $10 billion industry by the year 2025.
Aurora plans to use the hemp to create wellness products for the European market.
The two acquisitions cost Aurora $9.5 million in Canadian dollars. That’s a tiny acquisition for Aurora . . .
Yet it’s another signal that the cannabis land grab is underway. The big players – funded with lots of cash – are buying up the smaller companies.
The strong players get stronger. And the smaller players know they can’t compete.
Aurora shares have lagged some of the major players like Canopy Growth (NYSE: CGC) and Tilray (NASDAQ: TLRY).
That underperformance seems unjustified, given the company’s dominant position.
The stock is priced like a bargain value investment, compared with other major players. And I’d expect that this will be more evident once cannabis sales commence in Canada on Oct. 17.
This chart shows the YTD underperformance of Aurora Cannabis stock.
Aurora Cannabis shares are attractive at just over $6 per share in the U.S. market.
That’s why I plan to buy more shares of this stock at these levels.