The Marijuana Industries Top Competitors

The cannabis industry has remained extremely lucrative for the vast majority of those who have gotten in at this point, but with new regulation and businesses sprouting every day, it seems as though this is only the beginning of the massive growth of this market. Many companies have found niches in the market to begin supplying, helping to move them to the stratosphere of the industry as a whole. Two companies, in particular, have been compared vastly in recent times. Aurora Cannabis (NASDAQOTH: ACBFF) and Village Farms (NASDAQOTH:VFFIF) have both been large players in the cannabis market for some time now.

Aurora Cannabis is one of the strongholds for the cannabis industry as they have become one of the largest suppliers of cannabis to the market. The company has recently completed a series of acquisitions, including the largest ever recorded in the cannabis market. The acquisition of MedReleaf (NASDAQOTH:MEDFF) was one of the largest expansion efforts ever undertaken and has since created a force to be reckoned with as far as the cannabis industry is concerned. The company is also on track as a whole to produce over 570,000 kilograms of cannabis by the beginning of next year. This capacity is one of the main reasons that many have cited the company to be one of the strongest positions for growth in recent times.

Aurora cannabis has also prided itself by being one of the companies to begin utilizing the export of cannabis throughout the international market. The company has been working within the German industry, which some have stated has an extremely large amount of potential as well to grow very quickly. Aurora has also stated that they may be interested in moving into the U.S. market as some other Canadian giants have done in the past few months.

Village Farms is another interesting case in the industry, but they occupy a different side of the market. Village Farms uses greenhouse technology to grow a wide variety of food, but they have recently joined up with Emerald Health Therapeutics (NASDAQOTH:EMHTF) to get into the cannabis industry. This joint venture has resulted in the lease of a 1.1 million square foot facility which will help expand cannabis production by as much as 225,000 square feet of extra production space. According to one report “Village Farms believes that Pure Sunfarms is positioned to be one of the lowest-cost producers of cannabis in Canada. That could make the company an attractive supply partner for larger marijuana growers needing additional capacity to meet the flood of demand anticipated in the country after the recreational cannabis market opens in October.” October is slated to be one of the most important months for the cannabis industry as the legalization of recreational cannabis will go into effect during the middle of the month. This will be the first time that a G7 nation such as Canada has legalized the use of recreational cannabis, thus the interest in building the market even further.

The company still has a slightly smaller market cap than some of the big guys as around $220 million. The company does have a large amount of potential, but there is still a lot of room to grow. Growth has been one of the main focusses of the industry given that the market is still very much in its infant stages. The hopes are high that the combination of changing legislation and the changing public opinion on cannabis will help to make the market reach its full potential in the coming years. Only time will tell how well these efforts work.