Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Aurora Stocks Decrease by 11% as Cannabis Producer Decreases Expansion Against Declining Revenue

Aurora Stocks Decrease by 11% as Cannabis Producer Decreases Expansion Against Declining Revenue



Aurora Cannabis Inc. reported a 24% drop in revenue on Thursday, reporting sales of $ 75.3 million ($ 56.8 million) against $ 98.9 in the previous quarter as the company delayed its expansion plans in Canada and abroad.

US Aurora Shares

ACB, -7.32%

ACB, -6.61%

fell more than 1

1.3% in the extended session.

The company reported fiscal first-quarter fiscal revenue due to Aurora of $ 12.8 million, or a penny per share, up from $ 105.5 million, or 12 cents a share, from a year ago.

Aurora stated that it had sold $ 30.5 million worth of medical weed; entertainment sales consistently decreased by 33% to $ 30 million, which Aurora said was due to slower provincial orders. Aurora sold a $ 10.3 million wholesale pot, which executives say mostly consists of a lower-quality product, such as a haircut and shake, remnants of a higher-value smoking flower.

"In the summer, the provinces were catering to the supply that was available and stocking their shelves to the utmost," Chief Executive Terry Booth said in a conference call. "And it may have been a good idea in their minds that they would no longer have problems with retailers' deliveries, but it also affected the next quarter, which they didn't buy as much. The other step is – this is some [cannabis companies] I want to say that we include ourselves, we leave some product aside for [cannabis] 2.0 and get ready for this derivatives market, if you will, its market with more high value. "[19659002] The said stand in the derivatives market is the legalization of food, beverages and vape products, which are expected to be available to Canadian retailers next month. Such products were illegal in the country until October.

Overall, Aurora sold 12.5 tonnes of cannabis and produced 41.4 tonnes in the first quarter. The company said cash per gram dropped to $ 0.85 from $ 1.14 in the previous quarter. "So, yes, our products with this high quality at low cost are designed specifically for reproduction and scalability," Aurora Chief Executive Officer Cam Battley said in a conference call Thursday.

In a statement of profits, Aurora said it plans to halt construction at one of its weed growing facilities in Denmark. The company also said it would delay completion of the final construction and activation of its Aurora Sun facility in Canada. In a call for profit, Chief Financial Officer Glenn Ibbot said that the construction shutdowns are the result of ongoing monitoring of the company's demand in Canada and around the world and will result in $ 190 million in savings over the next few quarters . "

Aurora reports earnings against a backdrop of a brutal stretch for some of the largest cannabis companies in the world. Before the opening bell, Canopy Growth Corp.

CGC, -14,38%

WEED, -14,27%

report fiscal second quarter fiscal loss of C $ 374.6 million ($ 282.4 million) , or $ 1.08 per share of C $ 76.6 million in revenue. Earlier this week, investors saw results from Tilray Inc.

TLRY, -5,35%

who beat Wall Street revenue estimates, and Cronos Group Inc.

CRON, -6.06%

,

CRON, -6.04%

which missed revenue expectations.

In its earnings statement, Aurora stated that it had committed to investors holding 155 million C of its March 2020 deposits for the voluntary conversion of their bonds. The remaining debt holders will have the opportunity to convert their bonds at a discount.

"To take advantage of this global market, we recognize the need to be nimble and proactive. To improve our financial flexibility and position us in order to maximize future growth opportunities, we have also taken decisive steps to immediately strengthen our balance sheets, "Booth said in a statement.

In a call for profit, executives acknowledged that there was no lock-in period related to the freshly available $ 155 million shares already committed to converting the bond into shares.

After years of mispronouncing the San Rafael'71 brand, Aurora executives still seemed confused about how to say it. In a conference call Thursday, Battley pronounced it the way locals say it in the city of California, the brand was named "San Rah-fallen." But Booth pronounces it, "San-Raf-aye-el."

Prior to Thursday's extended session, Aurora shares were down 34% this year as ETFMG Alternative Harvest ETF

MJ, -4.55%

has dropped 31%.


Source link