‘The Industry’s Most Attractive, Durable and Profitable Segment’: Aurora Bets on Global Medical Cannabis

Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) reaffirmed expectations for sequential revenue and adjusted EBITDA growth in its fiscal second quarter of 2027, pointing to additional EU-GMP production capacity and continued momentum across Europe’s largest medical cannabis markets.

The business update arrives as Aurora asks shareholders to reject Curaleaf Holdings’ unsolicited takeover offer and seeks to demonstrate why its international medical cannabis platform can create more value as an independent company.

Aurora said the recently acquired Safari Flower Company should begin contributing incremental net revenue and adjusted EBITDA following its receipt of European Union Good Manufacturing Practice certification in July. The company also highlighted its performance in Germany and Poland and ongoing expansion in the United Kingdom.

“We remain focused and confident in executing our global growth strategy that at its core leverages our leadership position as one of the world’s largest indoor EU-GMP certified producers and are excited by the continued momentum we are generating in key international markets,” Executive Chairman and CEO Miguel Martin said.

Safari adds certified indoor capacity

Aurora acquired Ontario-based Safari Flower Company in April, describing constrained EU-GMP production capacity as a central obstacle to further international growth.

Safari obtained EU-GMP certification in July, allowing cannabis produced at the facility to enter European medical markets subject to applicable regulatory and import requirements. Aurora now expects the business to contribute revenue and adjusted EBITDA during the fiscal second quarter.

The acquisition complements Aurora’s existing production network in Canada and Germany and expands the volume of certified indoor flower available for export.

“The accretive acquisition of Safari Flower Company is adding critical EU-GMP capacity and, together with our established internal supply network and the recent acquisitions in the UK, we have built a consistent and reliable availability of high-quality medical cannabis products to meet growing patient demand in the estimated $9 billion market for global medical cannabis,” Martin said.

The value of that capacity depends on Aurora converting additional production into profitable international sales. Management said it will continue investing in the international business over the next several quarters to support growth in its key markets.

Germany and Poland lead European growth

Aurora described Germany and Poland as important contributors to its expectations for profitable international growth.

The company said it holds leadership positions in both countries, including the No. 1 position in Poland by revenue. Germany and Poland are the two largest medical cannabis markets in the European Union, according to Aurora.

Unlike Canada’s mature recreational market, European medical markets generally operate through physicians, pharmacies and tightly controlled import and distribution systems. These requirements raise barriers to entry but can also support more durable pricing and margins for companies capable of meeting pharmaceutical production standards.

Martin called medical cannabis “the industry’s most attractive, durable and profitable segment.”

“We are building real value in global medical cannabis markets where Aurora has earned a stellar reputation by investing in infrastructure, scientific excellence, and regulatory expertise,” he said.

Aurora also claimed leading market positions across Canada, Europe, Australia and New Zealand, although the release did not provide the underlying market-share figures for each jurisdiction.

The company said its international supply network positions it to enter additional countries as their regulatory frameworks open. Its portfolio includes Aurora, MedReleaf, Pedanios, IndiMed, San Rafael and Whistler Medical Marijuana Corporation.

UK acquisitions extend the strategy

Aurora expects its acquisitions of Internode Pharma and HAP Pharma to expand its UK market share but did not disclose their projected financial contributions.

Aurora emphasizes cash and the ATM

Aurora reported $149 million in cash—including restricted cash, short-term investments and cash equivalents—as of June 30, with no debt. It retained discretion to use its ATM program despite Curaleaf’s application asking the Alberta Securities Commission to halt issuances during the offer.

Curaleaf argues that further issuances dilute shareholders and increase the number of shares it must secure to satisfy its tender condition. Aurora did not announce a suspension.

The business update is also a takeover argument

The release presents a straightforward investment case: Aurora owns scarce certified indoor capacity, operates in expanding international medical markets, expects sequential revenue and adjusted EBITDA growth, and has the liquidity to fund further investment without term debt.

It is also a response to the central question raised by Curaleaf’s bid: whether Aurora’s assets will create more value under current management or inside a larger combined company.

Curaleaf sees the same strategic value in Aurora’s genetics, indoor cultivation, European distribution and balance sheet. The dispute is over the price, structure, and probability that Aurora can generate greater value independently.

Why is Curaleaf willing to pursue Aurora rather than another Canadian producer? How much is it effectively paying for Aurora’s operating business after accounting for its cash? Why does the market still price Aurora below the value of Curaleaf’s offer? And why could the offer’s 66⅔% acceptance condition matter more than its advertised 45% premium?

Rolando García examines those questions—and the unusual deal mechanics behind them—in Why Curaleaf Wants Aurora—and Why the Market Still Doubts the Deal.

The operating update strengthens Aurora’s argument that the assets Curaleaf wants are beginning to produce the international growth management promised. The next results will determine whether Aurora can turn that argument into numbers before Curaleaf’s offer expires on December 1.