Aurora Cannabi Stock expected to debut on benchmark Canadian stock index

Medible review aurora expected to debut on benchmark canadian stock

The second-largest cannabis company in Canada by sales, aurora cannabi stock is expected to be included in the benchmark Canadian stock index, a move that analysts predict will make the sector more appealing to institutional investors and ease capital access.

Alberta-based Aurora Cannabis, which trades on the Toronto Stock Exchange under the symbol ACB, could be added to the S&P/TSX Composite Index as early as Friday night, Toronto-based analyst Vahan Ajamian said in a research note.

“We believe this will continue the momentum of institutional investors looking closer at the sector,” Ajamian said.

Medible review aurora expected to debut on benchmark canadian stock

Aurora would be the third cannabis company to be included in the index, after Canopy Growth (TSX: WEED) and Aphria (TSX: APH) were added late last year.

Separately, Aurora completed a capital raise worth 230 million Canadian dollars ($185 million), which is believed to be the largest public financing in North America’s cannabis sector.

The company intends to apply the proceeds to the construction of a 1 million-square-foot medical cannabis production facility in Denmark, plus other domestic and international opportunities.

In January, Aurora announced plans to partner with a major greenhouse operator to create “Europe’s largest” medical cannabis producer in Denmark, making it the second licensed cultivator to build a facility in the Scandinavian country.

Does this mean I should buy aurora cannabi stock?

Aurora actually surpassed analyst predictions on their sales. Quarterly sales declined 9% to CA$50.4 million, with consumer cannabis sales way down, but sales of medicinal marijuana up 8%. Given how much they are still losing at this time, its a tough call to pour more money into them.

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Should I sell my Aurora Cannabi stock?

Whether or not you chose to chose to sell your aurora cannabis stock is a personal decision best made between you and your broker. Just because a stock is behaving poorly now does not necessarily mean that it will continue to do so. That being said, sometimes its just impossible to recover from the slide.

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