Canada’s second-biggest marijuana producer Aurora Cannabis Inc has agreed to buy smaller rival CanniMed Therapeutics Inc for C$1.1 billion ($852 million) creating the world’s largest weed producer by market value.
It's strange to see such a, er, high valuation for Aurora Cannabis.
Aurora + CanniMed:
Total number of patients = 40,000
Total revenue (previous reported quarter) = $13 million
Total shareholder's equity = $326 million
Total construction in Canada = 1.1 million sq. ft.
Total market cap = $7.7 billion
Canopy Growth Corp:
Total number of patients = 70,000
Total revenue = $17.6 million
Total shareholder's equity = $693 million
Total construction in Canada = 5.5 million sq. ft.
Total market cap = $6.7 billion
Canopy has greater future capacity but Aurora's market cap is higher today. That's very odd. Anyway, the future revenue and market share should sort this out. We'll know for sure who's the real leader in two years (Feb. 2020) when the 2019 financials come in.