The Canadian cannabis industry provides attractive investment options in the long term. The marijuana industry has experienced fluctuations over the last two years, but experts predict global cannabis sales will grow at a compound annual rate of 20% to $149 billion by 2031. Aurora Cannabis and Tilray Brands are two of the most popular Canadian marijuana companies. However, only Tilray seems to have the potential to thrive in the long run. Although Aurora Cannabis has reported a positive adjusted EBITDA of $1.03 million in the second quarter of fiscal 2023, it still has a net loss of $67 million, implying that the company is burning more cash than it is making. Moreover, Aurora Cannabis has raised the majority of its funds by reissuing shares, and it does not have a deep-pocketed partner to help with its expansion in the long run.
Tilray Brands, on the other hand, has benefited from the merger with Aphria, and it continues to grow through its European operations with cultivation and distribution in Portugal and Germany. Its management believes it has an early mover advantage as the legalization of adult-use marijuana could soon be a reality in Germany, and other European countries could follow suit.
