Aurora Cannabis Corp. (NYSE:ACB) is poised to benefit from the looming cannabis industry consolidation and we now have data to show that the prediction I previously made is coming true.
ACB just issued $40 million in stock to buy its way into the U.S. cannabidiol (CBD) market. The acquisition in question, a company called Reliva, is small but growing fast.
While $10 million a year in revenue is only a drop in the ocean for established corporate giants, it makes a big difference for ACB, which still earns cheers for bringing in $75 million a quarter.
Bolting on an extra 6% growth on the top line for the coming year is a good thing. Furthermore, Reliva is already profitable at this scale, so any expansion translates right to the bottom line.
That’s practically a miracle in an industry that’s still struggling to grow its way to profitability. The cannabis clouds are clearing as small players get taken out. Better days are on the horizon.
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