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.
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.
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.