Aurora Cannabis just announced a major push into the research sector, as they have set up a large Cannabis research center in Canada, along side Harvard University within the province of Saskatchewan.
From this, we have made changes to our official TNW Cannabis rankings, to now include the significant push for research centers to aid in expanding cannabis seed variants, as well as opening the doors for university collaborations with large Cannabis companies within the USA and Canada.
Let’s take a look at the two companies besides Aurora Cannabis that made some significant movement in our Cannabis rankings this month.
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Tilray acquired hemp-food manufacturer Manitoba Harvest and partnered with Authentic Brands Group earlier this year; it expects both to begin selling non-intoxicating cannabidiol products in the U.S. in the back half of 2019. Analysts are also suggesting that Tilray is searching for a large US-based company to partner with, to aid in a significant push into the US markets. The U.S. is the market where recreational marijuana is currently legal in 10 states, and many now see federal U.S. legalization as inevitable within the next five years.
With Marijuana season right around the corner, investors will be looking to see if the Nanaimo-based Cannabis company can sustain its record of 3 straight years of over 35% gain within marijuana season. We give Tilray a new BUY status for the rest of 2019.
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The latest bearish spell began when the company reported disappointing earnings for the quarter ended Feb. 28. The report included a significant reduction in gross margin to 18% from 47% in the prior quarter and a decrease in kilograms sold.
Aphria Inc (NYSE:APHA)looks to be further ahead as it recently announced that it had launched its first CBD-based product for its cosmetics line, which will be sold in Germany. Under the CannRelief brand, the product will be distributed by CC Pharma, which is a subsidiary of Aphria which has a network of 13,000 pharmacies in Germany that it can tap into.
The Company plans to more products later this year as it is looking to continue building its international market, and this we believe APHA is in a position of growth, coming off a less than stellar first and second quarter.
According to Nico S. Wolf (SRF Financial)
….going into May, we have been looking at upgrading our price targets for Aphria, Trulieve and Aurora due to a number of factors, but focusing on the recently large deal undertaken by Canopy growth. From this, they have changed the game so signifcantly that the Cannabis companies closely behind them will need to race to a) file for patent protection on specific products, and b) announce their own significant deals to stay relevant in the industry.