most important is Aurora’s share dilution problem. While relying on dilutive forms of financing was a necessary evil for most pot companies in their early stages, Aurora did so at a dizzying pace, which is likely dragging down its stock price. Further, unlike many of it peers, Aurora has yet to land a big name partner. Such a partnership would allow the firm to have access to the cash it needs to fund its expensive growth projects. Despite these headwinds, Aurora is arguably one of the better investment options in the cannabis industry, and the company recently made an important move that improved its prospects.” data-reactid=”16″>Despite being the most popular cannabis company in the world, particularly among millennials, Aurora Cannabis (NYSE: ACB) has yet to live up to its perceived potential, even given the nascent nature of the industry. There are many reasons for that, but perhaps the most important is Aurora’s share dilution problem. While relying on dilutive forms of financing was a necessary evil for most pot companies in their early stages, Aurora did so at a dizzying pace, which is likely dragging down its stock price. Further, unlike many of it peers, Aurora has yet to land a big name partner. Such a partnership would allow the firm to have access to the cash it needs to fund its expensive growth projects. Despite these headwinds, Aurora is arguably one of the better investment options in the cannabis industry, and the company recently made an important move that improved its prospects.
Of course, whether Aurora benefits from this opportunity depends in part on the company’s ability to properly execute its plans. However, this move is a reminder that Aurora is playing the long game. The marijuana firm has sacrificed short-term profits perhaps more than any of its competitors for the sake of building a strong foundation for the future. Only time will tell whether this strategy will pay off, but Aurora looks at least a bit more attractive given its acquisition of Hempco.
Joel South has no position in any of the stocks mentioned. The Motley Fool recommends Charlotte’s Web. The Motley Fool has a disclosure policy.” data-reactid=”44″>Joel South has no position in any of the stocks mentioned. The Motley Fool recommends Charlotte’s Web. The Motley Fool has a disclosure policy.
Fool.com” data-reactid=”45″>This article was originally published on Fool.com
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