Canada's Aurora Cannabis Inc (NYSE: ACB) confirmed Friday it will expand to the higher-margin edibles, vapes and concentrates market.
What Happened
Aurora said it will produce new, high-quality products for sale in the Canadian market. Ahead of the product launch, the cannabis company secured supply agreements with cannabis consumer technology brand PAX Labs. The company also established new production hubs across the country to provide centralized production, packaging, logistics and distribution capabilities.
Last October, Canada legalized adult-use cannabis sales — with a one-year pause on the sales of products such as extracts, topicals and edibles. Sales of those products is expected to begin this December.
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Why It's Important
Aurora CEO Terry Booth said the company is the "world's leading producer" of high-quality cannabis and it's ready to expand to the "high-value product additions" segment.
"From the beginning, we've invested in industry-leading production and distribution technology, and in consumer research to drive products to market that consumers will desire," said Booth. "These things, together with the dynamic partnerships we've entered into on the accessory and technology fronts, position us well for this new market launch."
Legalization of edibles and other products by the end of 2019 will mark the "second wave" of cannabis legalization in Canada. Aurora plans on demonstrating leadership in education consumers through campaigns that will provide the necessary information to make "safe and sound decisions."
Aurora shares traded lower by 4.1% at $7.13 at time of publication.
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