The markets don’t react after NYSE-traded Aurora Cannabis signs an exclusive supply deal with Mexico
Aurora Cannabis, which is traded on the NYSE under the ticker symbol ACB, has signed a deal to be the supplier for Farmacias Magistrales, SA, the only federally-licensed importer of raw materials in Mexico. Among those authorizations is the ability to import tetrahydrocannabinol (THC), through which Farmacias can store and distribute medical products that contain more than 1% THC. While the news should have been a boon for the marijuana industry – based on the belief that marijuana is reaching global acceptance – the stock markets didn’t necessarily reflect a positive sentiment.
After the news broke, Aurora’s stock price on the Canadian Stock Exchange increased by 2.5%. However, on the NYSE, the shares dropped 1.4%. As of this writing, the price has dropped another 3.65%.
Cronos shares also receded, falling by 2.3%. Given that Cronos had witnessed substantial gains after it was announced that Altria was making a billion-dollar investment in the company, the decline was a little puzzling. Cormark Securities has upgraded the company from “market perform” to “buy,” and raised its target from $10 to $17 – 42% above current trading levels.
On the other hand, Canopy Growth saw its shares increase by 0.6%, but the growth couldn’t hold for long. It has now dropped by about 3%.
Elsewhere, Tilray has shrunk by 3.14%, but Aphria is up 1.73%. Across the board, the market continues to remain somewhat volatile with no clear direction. However, this is more than likely just a short-term reaction and 2019 will bring positive growth, especially after the U.S. Farm Bill has been signed into law.