In addition to Aurora Cannabis Inc (TO:ACB), the Ontario government also plans to use Shopify for online and in-store cannabis sales
SmallCapPower | July 18, 2018: Aurora Cannabis Inc. announced on July 16, 2018 that it has reached an agreement with Shopify for its global ecommerce operations. Shopify is one of the world’s leading multi-channel, online commerce companies, which helps merchants to create an omni-channel experience, that helps showcase their brands. Aurora Cannabis plans to leverage the Shopify’s platform to distribute and derive demand for its medical and recreational cannabis globally.
Shopify will assist in transitioning Aurora Cannabis current e-commerce site to a new, Shopify-developed platform, improving the customer experience for current medical and recreational customers. Aurora can leverage Shopify’s platform for a rapid and seamless scalability, expanding its operations in domestic and international markets.
Back in February of this year, the Ontario government announced a deal to use Shopify’s e-commerce platform to help conduct both their online and in-store sales of cannabis once recreational legalization occurs in Canada.
Aurora Cannabis CIO Darryl Vleeming said, “Shopify’s unique, industry leading platform provides a safe, secure and flexible ecommerce site that we can build on as we execute our global growth initiatives and enter new markets.”
Further, Shopify VP Loran Padelford added, “While both companies originate in Canada, this is a true global success story, combining our industry-leading technology, helping to power the international expansion of one of the global leaders in the exciting and rapidly growing cannabis industry. The Shopify platform will allow Aurora to provide a tailored customer experience that embraces and adapts to the unique demands of both consumers and regulators, adapted to the specific needs of the various jurisdictions in which Aurora operates.”
Aurora Cannabis produces and distributes medical marijuana products in Canada. The Company’s products consist of dried cannabis and cannabis oil. It also operates as a pharmaceutical wholesaler and narcotics dealer of medical marijuana in Germany and the European Union; and produces and sells proprietary systems for the indoor cultivation of cannabis, organic microgreens, vegetables, and herbs.
Aurora Cannabis trades at market capitalization of $4.57 billion with price to book multiple of 3.29x. The agreement with Shopify should help boost Aurora Cannabis’ growth prospects.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.