23. March 2020 | 15:00 CET
Aurora Cannabis, Bayer, EXMceuticals - ready for the time after Corona
The cannabis hype was over and then came the corona crisis. Investors who believed in the active ingredient of cannabis and put money into the shares of companies in this industry are now likely to be sitting on a huge loss in most cases. It all started with the idea of a few companies to make one of the oldest medicinal plants in the world acceptable for general use within the framework of legalization. However, high margins and a large market soon led to competition and a brokerage industry was earning a lot of money - soon several hundred cannabis companies were listed on the stock exchange.
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ISIN: CA05156X1087 , DE000BAY0017 , CA30207T1049
Founder sells shares
One of the first major companies in this sector was Aurora Cannabis. During the boom phase in 2018, the shares changed hands at over CAD 16.00. On Friday, the company's shares closed on the home stock exchange in Toronto at 1.06 CAD. Aurora Cannabis is now worth only CAD 1.2 billion on the stock exchange. The price slide began in the first quarter of 2019 and has continued since then.
Last week the founder, Terry Booth, sold about 12,161,900 shares on the open market. Interim CEO Michael Singer explained that this transaction is related to the previously announced transition of Mr. Booth's role within Aurora Cannabis.
Bayer regains marketing rights
The German Bayer group is also present on the market for cannabis products. The company has been responsible for marketing Sativex under the product name Nabiximole in the United Kingdom since 2010. However, Bayer and GW Pharmaceuticals recently announced that the German group will return the marketing rights in 2020. Nabiximole can be used in the treatment of spasticity due to multiple sclerosis.
In the future GW Pharmaceuticals will take over the marketing in the United Kingdom. The two companies are working together to ensure a 'seamless transition', according to a statement.
Team for growth is ready
The management of EXMceuticals focuses on building a supplier for the medical industry. In the future, the company wants to supply the European market with pure and high-quality extracts from the cannabis plant from Portugal. CEO of EXMceuticals is Jonathan Summers. As a former manager at Goldman Sachs, he has filled the former shell company with experts in the past months, see the corresponding press releases.
In the current market environment, with all the curfews in Europe, the company is in a kind of waiting loop. As soon as the corona crisis is over, EXMceuticals should return to the focus of investors. With a share price of CAD 0.265, the company is worth only CAD 10 million on the stock market. In July 2019, the EXMceuticals share was still trading at over CAD 1.70. Stock market wisdom says: In times of crisis the foundation for future wealth is laid.