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Aurora Cannabis Q3 Revenue Increases 305% to $ 65 Million – New Cannabis Ventures



Aurora Cannabis publishes financial results for the third quarter of Fiscal 201
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  • Solid net revenue growth across all channels to $ 65.1 million
  • Production volumes Double while production costs per year Unit Declines
  • On the Track to Deliver Positive EBITDA Aurora Cannabis Inc. (Q3: ACB) (NYSE: ACB) (TSX: ACB) today released its financial and operational results for the third quarter ended March 31, 2019.

    Highlights Third Quarter 2019 [medmindreandetheandindividualthatthereofthedefinanceofindividualindicatesindividualandquarterly quarterly]

    • Continued solid revenue growth of an average of 20% across all key markets driven by successful upgrading of the company's production and continued strong performance across Canadian consumers and Canadian and international medical cannabis markets:
      • Canadian Consumer at 37%
      • Canadian Medical at 8%
      • International Medical up 40%
    • The growth of the company's medical patient base, an increase of 5% to 77,136. At the time of this release, Aurora has 82,745 active registered patients, an additional 7% increase and continues to record new patients as product availability is affected.
    • Cash costs for manufacturing per. Gram dropped 26% to $ 1.42 a year. Gram, as the initial effect of Aurora Sky's scale and efficiency began to be realized.
    • Production volume increased 99% to 15,590 kg, an increase of 1,200% the year before. The increase in production accelerated during the quarter, with the majority of the harvested volume realized in the latter half of the quarter.
    • SG&A spending has stabilized with a modest 1% increase reflecting Aurora's ongoing commitment to disciplined cost management. 19659010] The average selling price per Gram fell marginally due to product mix effects (higher wholesale consumer contribution), extraction demanding constraints that resulted in extract-based products that included 18% of net cannabis production and the first full quarter impact on excise duty on medical cannabis.
    • Adjusted EBITDA deficit improved by 20% to $ 36.6 million as the company continues to achieve positive EBITDA results starting in Q4 2019, as operations continue to ramp up.
    • In January 2019, Aurora completed US $ 345 million Convertible Notes offers, with the proceeds earmarked to continue the company's growth in Canada and internationally. IFRS accounting standards require a market adjustment in each period for the derivative part of these notes. Due to the increase in Aurora's share price since the issue of the notes, the company recognized a loss of DKK 102 million. USD without loss of fair value in Q3 2010 income statement.

    Management Comment

    I am exceptionally proud of our company and team, which Aurora continues to deliver on our domestic and international growth strategy. We achieved solid revenue growth and strong operating results during the quarter, which proved challenging throughout the industry. We are laser focused on building a long-term sustainable business.

    Terry Booth, CEO

    In the quarter, we formally assumed Nelson Peltz as a strategic advisor. He has been incredibly committed, cooperative and strategically focused on helping our pursuit of growth in global markets and with mature companies in nearby industries.

    CFO Glen Ibbott added: "Aurora is an extremely active and diversified company that manages cannabis research, product development, cultivation, global scale and revenue growth. With a solid Q3 on all fronts, it's time to move the benchmarks to the industry The company, which we have built with purpose through both organic growth and targeted acquisitions, has provided a unique opportunity: Continue to lead the industry in revenue growth while developing into a positive operating profit in the short term. "

    third quarter 2019 Financial and operational metrics

    ¹ Net revenue represents our total gross income excluding excise duty charged by the Canada Revenue Agency ("CRA") on the sale of medical and recreational cannabis products as of October 17, 2018.
    ² These Terms and Non-GAAP measures are defined or aligned in Aurora Q3 2019 MD & A.

    Outlook

    Aurora Sky and Bradford facilities are now operating at full capacity. With this, the company's annual production rate across its operating facilities is over 150,000 kg a year based on planted rooms.

    Aurora repeats its goal for Q4 with production for sale of over 25,000 kg. Management intends to allocate a portion of this capacity to its holding for the production of new products. Aurora remains focused on having vapes and certain edibles ready for launch under new rules in the Canadian consumer market, expected at the end of the calendar year.

    With the production hit, the company continues to increase production capacity with innovation and technologies aimed at reducing the time from harvest to market. The company expects that increased processing, packaging and delivery efficiency in the fourth quarter and above will accelerate the availability of the product.

    Supply to Europe and other international markets is expected to increase, as several of Auror's production facilities receive EU GMP certification. The Bradford Facility has recently undergone a review to obtain EU GMP certification. In the third quarter, the company began exporting full-spectrum cannabis extracts in Germany. Management predicts that sales will contribute to growth, given the higher margins in excerpt.

    Oil extraction capacity has been a limitation in the second and third tax quarters in 2019. After quarterly expansion, Aurora is expanding its internal extraction capacity to nearly 7,000 kg per annum. quarter at present and will reach nearly 16,000 kg per quarter in the first quarter. In addition, the company's extraction partner Radient Technologies is expanding its commercial production at the Edmonton plant. Therefore, Aurora expects the production of extract-based products to increase, while the full effect begins to materialize at the end of the fourth quarter. This increase in internal and external extraction capacity will improve Auror's ability to produce derived products on a scale, which management expects to have a positive impact on both revenue and gross margin.

    With Aurora Sky, now operating fully, the company continues to expect a reduction in production and production costs that allow cash costs per unit. grams to continue to trend lower. Management reiterates its expectation that the average cash cost to produce Gram on its Sky Class facilities will be under $ 1.

    With disciplined cost management, the Company expects SG&A costs to grow modestly for the remainder of the financial year. As a result, management expects that with sustained revenue growth and lower cash costs per Gram is Aurora well positioned to achieve a positive EBITDA beginning in the fourth quarter of 2019 (calendar Q2 2019).

    3rd quarter 2019 Facility and production update

    Aurora defines production Consider as the capacity of all planted rooms approved by the regulator for sale, using expected annual harvest species on maturity based on a historical yield per hectare. plant. These targeted dividends have been met or exceeded at all Auror's current operating facilities. To view a video overview of Auror's production facilities:

    • Construction at Aurora Sky is complete and all adult rooms are licensed by Health Canada. Fully planted, Aurora Sky operates with its full design capacity of over 100,000 kg per year.
    • All rooms at Bradford are licensed by Health Canada and the facility is fully planted. The plant has not received significant comments during the audit to obtain EU-GMP certification. Obtaining this certificate will significantly increase the Company's capacity to deliver product to the European market.
    • The first salable harvest at Aurora Nordic 1 is expected by the end of the financial year Q4 2019 with the product sales expected in December 2019 or as soon as possible regulatory approvals are given. The first harvest species for test and license purposes have been successfully completed.
    • The construction of the Aurora Sun goes well, with the plant expected to be ready for planting in the middle of calendar 2020. The Aurora Sun will measure 1.62 million square feet, reflecting a 33% increase from its originally planned size.
      • Construction of the steel structure is well underway and is expected to be completed by the end of June 2019.
      • The construction of the glass has begun and is expected to be completed shortly after the installation of the steel structure.
    • Whistler Alpha Lake currently operates with its 480 kg / year design capability of organically certified cannabis using four growth rooms.
    • Construction of Whistler Pemberton remains on the way to completion in calendar Q4 2019
      • Four rooms are fully operational with an annual capacity of 1,200 kg of organic certified cannabis
      • 11 additional rooms are expected to come online from November 2019
      • After completion, Pemberton is expected to produce 4,500 kg / year of organic certified cannabis
      • The Pemberton plant will incorporate a public lounge to educate visitors about the WMMC and its history as cultivation pioneers of organic certified cannabis
    • During the recent growing season in Europe, Agropro harvested a combined 3,950 hectares of hemp over Lithuania, Latvia and Estonia. For the upcoming growing season, beginning in May 2019, Agropro plans to enter into a contract for 8,150 hectares of hemp for harvest, which is expected to start in August.

    3rd quarter 2019 and subsequent corporate highlights

    Purchase [19659008] Purchase of Whistler Medical Marijuana Corporation ("Whistler")

On March 1, 2019, Aurora bought Whistler, an iconic Canadian organic cannabis label imposing a substantial premium for its products in both Canadian medical and consumer markets. The company is in the process of upgrading Whistler's operations and expects an increase in the products available for sale for the rest of the calendar year.

  • Purchase of Hempco Food and Fiber Inc. ("Hempco")

April 16 In 2019, the company entered into a binding letter agreement with Hempco to acquire all issued and outstanding shares in Hempco. The acquisition will strengthen the company's industrial hemp and CBD-from-hemp infrastructure.

  • Purchase by Chemi Pharmaceuticals Inc. ("Chemi")

On April 24, 2019, the company bought Chemi, a Ontario-based laboratory specializing in quality analysis services for the pharmaceutical industry and the cannabis industry.

Strategic Developments

  • Appointment of Nelson Peltz

On March 13, 2019, the company appointed Nelson Peltz as strategic advisor to work with Aurora to explore global expansion and partnership opportunities. The management believes that the company is well-equipped to pursue partnerships across a number of industries and works with Mr. Peltz and his team to evaluate opportunities.

On February 12, 2019, the company announced the construction of Aurora Polaris, a 300,000 square meter international logistics center and plant for industrial production of derived cannabis products. The construction is in progress and the company expects completion towards the end of the calendar year. Pending new rules, the company is in the process of installing temporary production lines in licensed space across its production infrastructure in Canada to ensure that a full complement of products will be available for sale in significant quantities when permitted.

International Expansion

  • German Cannabis Production Tender

On 5 April 2019, the company was selected by the German Federal Institute for Drugs and Medical Devices as one of three winners in a public offer of to grow and distribute medical cannabis in Germany. Aurora scored highest across 11 out of 13 bidding lots and was awarded the maximum number given to an LP of five. Aurora has begun work on the construction of a plant in Germany and expected product to reach the German market in October 2020. Management expects to become a local producer will strengthen brand awareness and market development in a large and important market.

  • Export of medical cannabis to the UK

On 11 February 2019, the company completed its first commercial export of cannabis oil to the United Kingdom. Under the new UK framework, specialized doctors can legally issue cannabis-based prescriptions when they agree that their patients may benefit from this treatment.

On February 26, 2019, the company set up Aurora Portugal Lda. through an agreement to acquire a 51% stake in Gaia Pharm Lda. Construction of an EU-GMP compatible production of cannabis plants is underway in Portugal.
Export of cannabis oil to Germany
The company started selling cannabis oils to German pharmacies on March 11, 2019. Aurora's full-spectrum extract is differentiated in a market that is mainly served with synthetic cannabinoids. With this, management believes that the company has a significant competitive advantage in establishing early parent company management, brand awareness and sales growth in this higher margin segment.

Financing activities

  • Offer of convertible notes

On January 24, 2019, the Company closed a offer of convertible notes for gross proceeds of US $ 345 million. To burn Canadian and international expansion initiatives for future acquisitions and for general business purposes, including working capital needs to continue its accelerated growth.
Submission of Final Base Shelf Prospectus and Prospectus for Market Offering
On May 10, 2019, the Company filed a final summary summary with the prospectus ("Shelf Prospectus") with the securities issues in each of the provinces of Canada, except Quebec, and a similar Shelf Registration Declaration with the United States Securities and Exchange Commission on Form F-10. These applications allow the company to qualify the distribution under a prospectus in Canada and the United States of up to $ 750,000,000 of ordinary shares, warrants, subscription receipts, debt instruments or any combination of such securities (all of the above, collectively "Shelf Securities") In the 25-month period, the final short-form base shelf prospectus remains effective. The specific terms for any future offers under the shelf prospectus are established in a prospectus grant. Any prospectus subsidy is submitted to the applicable securities authorities in connection with such a tender.

  • Submission of Final Base Shelf Prospectus and Prospectus Supply to Market Offerings

On May 10, 2019 The Company filed a final brief basic set-up prospectus ("Shelf Prospectus") with the Securities Commission in each of Canada's provinces except Quebec and a corresponding shelf registration declaration with The United States Securities and Exchange Commission on Form F-10. These applications allow the company to qualify the distribution under a prospectus in Canada and the United States of up to $ 750,000,000 of ordinary shares, warrants, subscription receipts, debt instruments or any combination of such securities (all of the above, aggregate "shelf-value securities") in the 25-month period that the final short-form base shelf prospectus remains effective. The specific terms for any future offers under the shelf prospectus are established in a prospectus grant. Any prospectus subsidy will be submitted to the applicable securities authorities in connection with such a tender.

On May 14, 2019, the Company filed a prospectus supplement (the "Prospectus supplement") for the Set-up prospectus. In connection with the Supplement Aurora prospectus, a sales agreement dated 14 May 2019 was entered into with Cowen and Company, LLC ("Cowen") and BMO Capital Markets ("BMO"), which will act as the sales agents ("the Sellers") for the sale of the joint shares in Aurora ("Common Shares") on "on-the-market distribution" on the New York Stock Exchange in the United States. Subject to the terms of the sales agreement and applicable legal requirements, joint stock up to USD 400,000,000 may be issued and sold from time to time by Aurora estimates over a period of up to 25 months. The Common Shares will be distributed at market prices at the time of the sale of such Shares, and therefore prices may vary between buyers and during the distribution period. The net proceeds of such sales may be used for general business purposes, including: i) working capital; (ii) potential future acquisitions; (iii) debt repayments; and (iv) investment expenses. The volume and timing of any sale of common shares is at Aurora's discretion.

Aurora expects to use the net proceeds from the prospect to support its expansion initiatives, global partnership strategy and to continue its accelerated growth.

The Shelf Prospectus and Prospectus Supplement is filed on SEDAR and the US version of the Shelf Prospectus and Prospectus Grant is filed on the SEC & # 39; website (www.sec.gov).

This news release does not constitute an offer to sell or call for an offer to purchase, nor shall any sale of those securities be in any jurisdiction where such offer, solicitation or sale would be unlawful prior to registration or qualification under the Securities Act of such jurisdiction.

Financial supplement Q3 2019

Options Grant

The company granted a total of 383,000 options for the purchase of common shares by Aurora for board members and employees of the company. The options distribute annually over 36 months and have a weighted average exercise price of $ 9.35 per common share.

Conference Call

Aurora is holding a conference call tomorrow, May 15, 2019, to discuss these results. Terry Booth, CEO, Glen Ibbott, CFO, Cam Battley, Chief Corporate Officer and Michael Singer, CEO, will host the call, starting at. 10:30. Østtid. A question and answer session will follow the management's presentation.

Date: Wednesday, May 15, 2019
Time: 10:30 am Eastern Time | 08:30 Mountain time
Webcast: https://bit.ly/2GRpDP3
Replay: (416) 849-0833 or (855) 859-2056 to 12:00 midnight Eastern Time Wednesday 22 May, 2019
Reference Number: 1103129

IFNew IFRS measures are defined in the company's MD & A.

About Aurora

Headquarters in Edmonton, Alberta, Canada with a funded capacity of over 625,000 kg per year and sales and operations in 24 countries on five continents, Aurora is one of the world's largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across all the key segments of the value chain, from plant technology and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value productive development, livestock farming, wholesale and retail distribution.

Aurora has greatly differentiated its colleagues and has established a unique advanced, consistent and efficient production strategy based on targeted facilities that integrate advanced technologies across all processes defined by extensive automation and customization, resulting in the massive scale production of high quality product at low cost. We intend to be replicated and scaled globally, and our production facilities are designed to produce high-quality cannabis with high quality, leading yields and low production costs per year. Gram. Each of Auror's facilities is built to meet EU GMP standards. EU GMP certification has been awarded to Aurora's first production facility in Mountain View County, the MedReleaf Markham plant and its wholly-owned European cannabis dealer Aurora Deutschland.

In addition to the company's rapid organic growth and strong implementation of strategic M&A, which to date comprises 16 wholly-owned subsidiaries – MedReleaf, CanvasRX, Peloton Pharmaceutical, Aurora Deutschland, H2 Biopharma, Urban Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics, Anandia, HotHouse Consulting, WITH Colombia, Agropro, Borela, ICC Labs, Whistler and Chemi Pharmaceutical – Aurora stands out for its reputation as a partner and employer in the global cannabis industry, which has invested in and established strategic partnerships with a number of leading innovators including: Radient Technologies Inc. (TSXV: RTI), Hempco Food and Fiber Inc. (TSXV: HEMP), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), Capcium Inc. (private), Evio Beauty Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC: CTTH), Alcanna Inc. : CLIQ), High Tide Inc. (CSE: HITI) and EnWave Corporate (TSXV: ENW).

Aurora's common stock trades on TSX and NYSE under the "ACB" symbol and is a component of the S & P / TSX Composite Index.

For more information about Aurora, visit our investor website investor.auroramj.com

Original press release

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Published by NCV Newswire

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