Miguel Martin, CEO of Aurora, tells Business Insider that the company is pivoting — back to medical cannabis. The company’s medical sales grew by 9 per cent this past quarter, while adult-use sales dropped by a gutting 45 per cent (which they attribute to COVID).
“The medical business in my mind is the most exciting and potentially profitable piece of the entire cannabis business,” Martin said. “The fact that everyone is just so consumed by this idea that only rec cannabis matters, I think, is a fallacy,” he added.
American dreams ‘a long way off’
Unlike so many of its Canadian counterparts like Canopy and Tilray, Miguel says Aurora is not investing in US assets to prepare for federal cannabis reform. Instead, its long-term planning is focused on international medical markets, such as Germany and France.
“There’s no way that the Biden administration wakes up one day and signs legislation,” he said. “We’ll see this coming a long way off.”
Rough year
It’s been a tough month for Aurora, which made more significant cuts in its effort to reach profitability. Last week, the company laid off approximately eight per cent of its workforce, reports Marijuana Business Daily, and shuttered its Edmonton edibles and pre-roll manufacturing facility, which opened mere months ago in January.
Jefferies still says ‘hold’
Despite its challenges, Insider’s Jeremy Berke confirmed that investment bank Jefferies Group still maintains its “hold” rating on $ACB:
“We continue to give credit for this,” they said, “although we did find the CEO’s comments around the US somewhat confusing.”
