Aurora Cannabis (NYSE: ACB; TSX: ACB) has completed its first shipment of CBD oil to the UK after receiving approval from British authorities.
The UK legalized cannabis for medicinal purposes on Nov. 1, 2018, but patients have struggled to gain prescriptions due to onerous government guidelines for doctors. Yet Aurora has faith in the British market, which is the world’s fifth largest economy, with a population of more than 60 million people.
“Regardless of the barriers we may be faced with, we are focused on helping patients around the world get access to the medicine they need,” said Neil Belot, chief global business development officer. He added that Aurora has the ability to navigate complex and evolving regulatory systems in international markets.
Despite the news, Aurora’s share price decreased on Monday morning, and they will deliver their Q2 results when trading closes today, with guidance for revenue that fell below analysts’ expectations.
It said it is enhancing its UK operations to ensure British patients will have access to a range of Aurora cannabis-based medicines when and where they are needed, and cracking that potentially lucrative market could give the company a huge shot in the arm.
The European market is tipped to be huge for CBD in the next decade, and global industry players are making moves across the continent. Reports have emerged from Greece claiming that a total of 30 proposed foreign investments in medical and industrial marijuana production that together surpass €350 million have been submitted to the general secretariat of industry for approval. The Green Organic Dutchman is one such company, as it recently confirmed a €74 million investment in producing cannabis there.
Another key battleground is South America. Colombia has emerged as a hotspot on the continent. Canopy Growth, Aphria Inc., Khiron Life Sciences Corp., and Pharmacielo Ltd. have all moved into the country, and now Pure Harvest, a subsidiary of Colorado-based drinks distributor The Pocket Shot Company (OTC: PCKK) is joining the party by announcing plans for a large scale cannabis production facility there.
The site is close to the Equator and it is said to benefit from a year-round cycle of 12 hours of light, 12 hours of dark. The firm said there is also a stable, low-cost labour force, clean water, ample electricity on the grid, and increasing expertise in cultivation of marijuana and hemp.
It will produce flower and derivatives on a 400-hectare site and the plan is to export it around the world.
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