With more states legalizing the use and sale of marijuana for consumers, the CEO of one Canadian cannabis company thinks the industry is about to become a lot more lucrative.
Miguel Martin, who runs Aurora Cannabis (ACB), told CNN’s Alison Kosik on the Markets Now show that there is “no question” that Aurora is well on its way to achieving profitability now that the US, Mexico and many other markets are opening up for legal pot sales.
Martin also said that he expects the US Food and Drug Administration to play a more active role in cannabis regulation going forward.
But the big challenge for his firm and other cannabis stocks, he said, is that the there has been an “arms race” going on in many countries where legal recreational cannabis use is still relatively new. Companies have had to spend a lot to attract consumers.
“It’s only recently that there has been focus on fundamentals, and that’s not just for Aurora. But we’re on the right track,” he said.
The good news, he added, is that the medical marijuana business is profitable and has “heathy” margins.
As for the company’s volatile stock price, which is up more than 10% this year but trading more than 50% below its 52-week high, Martin said he doesn’t blame analysts for being skeptical. “We have to prove to Wall Street that we can consistently deliver profitability, he said, adding that “the future is bright for cannabis.”
He argued that Aurora has a good business model and will be a great long-term investment.