Reaching wide and deep
In our series Must-Knows before Investing in the Marijuana Industry, we saw how, globally, the acceptance of marijuana has evolved, with more countries either legalizing cannabis access at a federal level or exploring the possibility of legalizing cannabis.
Aurora Cannabis (ACB)(ACBFF) currently has a presence in Canada, Germany, Australia, and the European Union, while CanniMed Therapeutics (CMED) has a presence in Canada, Australia, South Africa, the European Union, and the Cayman Islands. These companies overlap in some of these countries.
According to Aurora Cannabis, the combined company will be able to diversify its revenue stream, provide an opportunity to cross-sell its products, and gain access to additional markets.
Medical versus recreational
At this point, we must acknowledge that much of the enthusiasm in marijuana companies such as Aurora Cannabis, CanniMed, Canopy Growth (WEED), and Cronos Group (PRMCF) is driven by potential growth from the legalization of recreational marijuana in Canada.
To date, Uruguay is the only country that has legalized recreational marijuana. So the market (MJX) potential for marijuana players could grow if recreational marijuana picks up in other countries. For now, these companies only serve the medical markets in the countries where they operate.