Why This New Marijuana IPO Could Be a Hotter Buy Than Aurora Cannabis (TSX:ACB)

A new listing on the TSX could give Aurora Cannabis Inc (TSX:ACB)(NYSE:ACB) a lot more competition not only in Canada, but around the world as well.

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We’ve witnessed many cannabis companies cropping up in recent years in hopes of getting a piece of the fast-growing industry.

However, in light of recent events and the concern surrounding the industry today, investors will likely start seeking more structure and substance when deciding on which pot stock to buy, as opposed to just growth.

While focusing on growth has worked for a stock like Aurora Cannabis Inc (TSX:ACB)(NYSE:ACB), it may not be enough to draw investors in over the long term.

That’s where an upcoming marijuana IPO could prove to be more promising. Israel-based Breath of Life International, also known as BOL Pharma, could give Aurora a run for its money.

It has applied to be listed on the TSX and we could see it makes its debut later this year. While it’s still relatively small in sales and nowhere near the size of Aurora, that might not be the case for long.

By the end of next year, the company expects to be able to produce as much as 870,000 kilograms of dried cannabis annually.

While Israel hasn’t legalized recreational use for marijuana, it has been a leader when it comes to the research of medical cannabis.

What set the stock apart from others in the industry?

BOL Pharma has been heavily involved in the research of cannabis, which gives it a big advantage in terms of being able to uncover technologies to improve efficiency and potentially making better medical marijuana products as well.

In addition to CBD and THC, BOL Pharma can extract other cannabinoids as well, including cannabinol (CBN), cannabichromine (CBC) and cannabigerol (CBG).

The company has the ability to be a significant player on the medical marijuana stage once it has the production capacity to start ramping up. With fewer operations worldwide, BOL Pharma can be a lot more focused than Aurora, which means less overhead and fewer operating costs, giving it a better chance of turning a profit.

Its Israel location also gives BOL Pharma a geographical advantage to the European market, which is a significant growth opportunity outside of North America. However, the company is not only focused on Europe; it’s also looking for opportunities in Canada.

Bottom line

BOL Pharma could be the real deal for cannabis investors. With lots of intelligence and research behind the company, it could be putting itself in a great position to succeed in the industry while not having to spread itself thin in order to do so.

There are significant opportunities internationally for the medical marijuana market, and BOL Pharma could be at the forefront of that growth.

While we don’t know yet when the company might start trading on the TSX, it could attract plenty of investors if and when it does so.

The more that Aurora and other Canadian producers continue falling short of expectations, the more an international company like BOL Pharma might be more appealing, as investors can expect more of a focus on research and diligence over just growth.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor David Jagielski has no position in any of the stocks mentioned.

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