Canada-based Aurora Cannabis Inc. tripled its revenue thanks to bigger weed sales in the final quarter of its fiscal year, but the pot producer’s profit gains were mostly the result of a different business: investing in other marijuana companies.
Canadian cannabis stocks have been soaring of late, as the country prepares to fully legalize the drug for adult recreational consumption on Oct. 17. Aurora executives, similar to competitors like Canopy Growth Corp. and Cronos Group Inc., said after releasing earnings Monday evening that the company is prepared for a big spike in sales.
“In about three weeks from now, a significant increase in demand will initially come from the Canadian legal consumer use market,” Aurora Chief Corporate Officer Cameron Battley said on a conference call Tuesday morning. “We’ve been building inventory in anticipation of that market and have supply arrangements with just about every province and territory in Canada to supply a broad range of dry flower and higher margin products such as pre-rolls, oils and capsules.”
Aurora appears prepared for recreational legalization in other ways as well, mainly by becoming the Berkshire Hathaway of cannabis. Aurora has invested heavily in other weed businesses, and said Tuesday that as of Sept. 21, the total value of the company’s investments in public companies was worth more than C$700 million.