The cannabis industry is going to be huge but is Aurora the right company to invest in?

When most investors consider cannabis companies, they think about where those companies have the potential to be five to ten years from now. After all, the cannabis industry is expected to reach $75 billion in global sales. Some figures put this number even higher.

Aurora Cannabis is a Canadian cannabis company and its a leader both in terms of sales and production. The company’s shares are up 52% in 2019 and the company has expanded to 24 countries worldwide.

4 things you need to know about Aurora Cannabis

But it hasn’t been all smooth sailing for the company up until now. Aurora’s shares may be up year to date but they’ve been up and down over the past year. Here are four things you should know before investing in Aurora Cannabis.  

Aurora is unmatched in terms of production

Aurora is leading its competitors in terms of its cannabis production capabilities. During its most recent quarter, the company produced more than 15,000 kilograms. 

And the company’s production continues to increase by nearly 100% quarter over quarter. This means that the company should soon have the capacity to produce 625,000 kilograms annually. 

The company uses custom cannabis facilities

Another competitive advantage Aurora has is that it is using custom cannabis facilities. In comparison, most of its competitors are using retrofitted greenhouses which are more limited. Aurora’s facilities allow it to be more efficient and drive down the costs per gram.

The company has been limited by its lack of investments

Canopy Growth is easily Aurora’s biggest rival going forward. One of the things Canopy has done well is to partner with companies like Constellation Brands, which invested $4 billion in the company. In comparison, Aurora hasn’t received any major investments which have limited its growth in many areas.  

Aurora continues to dilute its shareholders

This is one of the biggest drags on Aurora’s stock and probably the number one reason the company hasn’t received any large investments. Aurora continues to acquire new businesses and products and pay for it with the company’s common stock. These things all add value to the company but its spread out over a larger number of shares. 

Is Aurora Cannabis a good investment?

Shares of Aurora Cannabis could go either way at this point. The company has a lot of potential but there are quite a few issues it needs to deal with before it can be considered a solid investment. The company needs to partner with a large investor and stop diluting its shareholders first.