Forecast looking positive for Cannabis market

Aurora Cannabis (ACB) has announced that it expects to cultivate at a higher rate during their fiscal fourth quarter, forecasting stronger margins and sales during the same period. The forecast was total net sales of 100 million to 107 million Canadian dollars, with even the midpoint of that range representing a jump of 59 per cent.

This forecast equates to sales at the higher end of a range of 25,000 to 30,000 kg, while an earlier outlook was far closer to the lower end of 25,000. The company also projected quarter-over-quarter improvement in gross margins, product sold, and cost per gram – with the full results anticipated to be released before mid-September.

Columbia Care also reported substantially positive results, with second quarter revenue of $19.3 million – an increase of 102% from the same period in the previous year. These are just some of the latest positive developments in the sector, which is expected to reach £66.3 billion by the end of 2025, according to a report published earlier this year by Grand View Research, Inc.

Evolving and expanding worldwide

Globally, the adoption of cannabis for both the recreational and pharmaceuticals market, plus decriminalization in some countries, is leading to further interest and substantial trust in the sector. With a large customer audience already established in the U.S. and Canada, Europe is now taking the opportunities of the sector seriously, while other promising markets are emerging in South America and Australia too.

In Asia, countries like Thailand are beginning to develop the legal structure required to develop a presence in the sector, and revenue is expected to continue benefiting from significant growth. Countries like South Africa and New Zealand are also discussing the legalization of medicinal cannabis, and may also add their names and new facilities to the market as the sector continues to grow.

As cannabis has been recognised for its medicinal potential for treating severe medical conditions such as cancer, Parkinson’s disease, Alzheimer’s disease, arthritis and a range of neurological conditions, the medical cannabis market still holds the largest market share, although this is now expected to grow at only half the rate of the legal cannabis market until 2025 (12.7 per cent, compared to 24.1 per cent).

Whichever area of the sector you operate in, HE Capital has the knowhow and expertise to help your company thrive in this constantly evolving sector. With offices ideally located in New York, Vancouver, Frankfurt and London, we can position you at the heart of the most established, growing, and burgeoning areas of the sector in the world.



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