Aurora Cannabis Archives - Green Market Report

StaffMay 12, 2022
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5min4630

Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) announced its financial results for the third quarter of fiscal 2022 ended March 31, 2022, as total cannabis net revenue fell 17% sequentially to $50.4 million. Aurora recorded a number of one-time non-cash charges in the quarter of $741.7 million, asset-specific impairments of $176.1 million, and an inventory provision charge of $63.6 million.

Aurora has previously identified annualized cash savings of $60 million to $80 million and now expects to surpass the high end of this range with an additional $70 million to $90 million in savings by the end of H1 fiscal 2023, split evenly between costs of goods sold (“COGS”) and SG&A, for a total of up to $170 million in cash savings under this transformation program. Projected COGS savings now include the closure of the Aurora Sky facility in Edmonton (previously announced to be operating at approximately 25% capacity), in keeping with our diversified business portfolio, prudent approach to capital allocation, and our strategy in the Canadian adult-use market to focus on higher margin premium categories. These cash savings will be reflected in our P&L either as they occur within SG&A savings, or as inventory is drawn down for production-related savings.

“We continue to steer our differentiated global cannabis business towards long term shareholder value creation. This is being accomplished through a sole focus on the most profitable growth opportunities, rationalization of our Canadian cost structure and disciplined use of capital. Our plan is working and we remain firmly on track to achieving a positive Adjusted EBITDA run rate by the first half of fiscal 2023. Today, we are announcing further cost savings which will enable us to increase our range of savings under our business transformation plan from $60 to $80 million to $150 to $170 million. Our balance sheet also remains among the strongest in the industry, enabling the repurchase of $141.4 million in convertible debt early, while also providing meaningful working capital to support organic growth and pursue strategic M&A, such as our recent acquisition of Thrive Cannabis,” stated Miguel Martin, Chief Executive Officer of Aurora.

On March 31, 2022, Aurora had $480.6 million of cash, including $50.7 million in restricted cash, no secured term debt, and access to US$887.6 million of capital under its shelf prospectus, including an at-the-market (ATM) facility, of which currently US$187.6 million remains under the program.

“During Q3, we continued focusing on our global medical cannabis business because it is both defensive and stable, with cash gross margins that exceed 60%. We were pleased to have experienced considerable top-line growth in this segment year over year, and with new international markets poised to open, our track record and ability to navigate complex regulatory environments position us ideally for a significant revenue opportunity globally. In terms of the Canadian adult-use market, we continue to adjust to current conditions, are excited for future contributions from the Thrive team, and are committed to a continuous stream of innovation, including advancing our premiumization strategy,” he concluded.


StaffMarch 23, 2022
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7min5750

The Daily Hit is a recap of the day’s top business news for the cannabis industry for March 23, 2022.

On the Site

Cresco Labs

Cresco Labs (OTC: CRLBF) is buying New York-based Columbia Care (OTC: CCHWF) in a $2 billion deal that will make it the largest marijuana company in the U.S. The all-stock purchase would give Cresco a presence in new recreational-marijuana markets, such as New Jersey and Virginia. It’s the largest merger in the marijuana business since Trulieve, based in Quincy, Fla., bought Harvest Health & Recreation for $2.1 billion last year. The deal is the biggest involving a Chicago-based marijuana company since Grassroots was bought by Curaleaf, headquartered in Wakefield, Mass., for $715 million in 2020. Read more here.

While the news of the Columbia Care acquisition was the big news of the morning, Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) also reported its financial results for the fourth quarter and year ending December 31, 2021. Cresco’s fourth-quarter revenue rose 34% over last year to $218 million, this was only a slight increase over the third quarter’s revenue of $215 million. The cash flow from operations was $38 million. Taxes and interest payments pushed the company to report a net loss of $11 million the quarter. Read more here.

Agrify

Agrify Corporation (Nasdaq: AGFY)  announced financial results for the fourth quarter and fiscal year ended December 31, 2021, with revenue rising 481% to $25.3 million for the fourth quarter over last year’s $4.4 million for the same time period. It was also a big jump over the third quarter’s revenue of $15.8 million. Agrify delivered a net loss for the fourth quarter of $13.3 million, or $0.60 per diluted share, compared to a net loss of $13.1 million, or $2.23 per diluted share, in the prior-year period. Read more here.

In Other News

Aurora

 Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) reached an agreement to acquire all of the issued and outstanding shares of TerraFarma Inc. (parent company of Thrive Cannabis) for $38 million payable in cash and Aurora common shares , plus two earnout amounts payable in Aurora Shares or cash, if applicable, based on Thrive achieving certain revenue targets within two years of the closing of the Transaction. Founded in 2018, Thrive is a licensed producer of super-premium cannabis concentrates and craft dried flower, and leverages innovative cultivation and extraction techniques with a singular focus on achieving the highest quality standards. Thrive is most widely known for its award-winning flagship recreational brand, Greybeard Cannabis Co. (“Greybeard”), which amongst other accolades was recognized as the #1 brand recommended by Canadian budtenders in 2021, and was the 2021 winner of Best Concentrate from the Kind Magazine Awards, as voted for by budtenders. Read more here

Metrc

Metrc announced its new contract with the state of South Dakota to support the regulation of the state’s medical cannabis market. This marks Metrc’s 20th government contract to date nationwide for the implementation of its cannabis track-and-trace systems. “As South Dakota continues to ramp up their recently implemented medical cannabis market, we are thrilled to have the opportunity to spearhead the state’s first-ever track-and-trace program,” said Jeff Wells, CEO of Metrc. “Our team at Metrc is looking forward to working closely with the Departments of Health and Revenue, state regulators, and licensed operators to implement a strong regulatory framework that will effectively guide South Dakota’s newly emerging medical market down the path to success.” Read more here.


Debra BorchardtFebruary 11, 2022
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After the market closed on Thursday, Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) delivered results for the second quarter fiscal 2022 ending December 31, 2021. Aurora reported that second quarter total cannabis net revenue was $60.6 million, up 1% sequentially but down from last year’s $67 million. This beat the analysts estimates for revenue which was just $46 million according to Yahoo Finance. As a result, the stock was trading almost 2% higher to lately sell at $4.70.

The company also delivered a net loss of $75 million for the quarter, which was an improvement over last year’s net loss of $300 million.

The average net selling price per gram of dried cannabis excluding the effect of bulk wholesale of excess mid-potency cannabis flower during the quarter, declined 10% to $4.20 from $4.67 in the first quarterQ1 2022 reflecting continued downward pressures on pricing due to competition.

“During the second quarter, we improved our Adjusted EBITDA by $2.5 million over Q1, moving us closer to our profitability goal. Our focus remains on further cost reductions, and we are pleased to announce today that we expect to reach the high end of the $60 to $80 million range. Our balance sheet remains among the strongest in the industry, with approximately $445 million in cash as of yesterday. This gives us significant working capital to support organic growth and positions us to pursue strategic M&A opportunities,” stated Miguel Martin, Chief Executive Officer of Aurora.

Cantor Fitzgerald analyst Pablo Zuanic reiterated a neutral rating on the company but dropped his 12-month price target to C$7.60 from C$10.75 due to reduced sales estimates. Zuanic said the company remains a long-term turnaround story. “We realize pressures in the domestic recreational unit, in part, offset progress in other areas, so trend-wise we are constructive, but do not have enough fodder to upgrade the stock.”

“Q2 total cannabis net revenue held steady sequentially, driven by our industry leading, high margin global medical cannabis business. New international markets are rapidly opening, and with the unique ability to navigate complex regulatory environments, we see a significant revenue opportunity of which we are at the forefront. While the Canadian adult-use market continues to face challenges, we are focused on introducing a new range of products set to launch this spring,” he concluded.


Debra BorchardtSeptember 27, 2021
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4min10120

After delaying its earnings announcement, Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) released its financial results for the fourth quarter and full-year fiscal 2021 ending June 30, 2021. Aurora reported that its revenues in the quarter fell 20% in the quarter to $54.8 million from last year’s $68.4 million for the same time period. Revenue also dropped sequentially from the third quarter’s $55.1 million. The amount of kilograms sold during the quarter fell 32% to 11,346 from last year’s 16,748.

The net loss for the quarter was a whopping $133 million, which is down from the third quarter’s net loss of $160 million and last year’s eye-popping $1.8 billion for the same time period. For the full year, Aurora reported a net loss of $693 million versus 2020’s net loss of $3.2 billion. Aurora said it has identified cash savings of $60 million to $80 million and said it expects to deliver $30 million to $40 million of annualized cash savings within the next year, and the remainder by the end of the second fiscal quarter 2023.

Aurora said that its consumer cannabis net revenue was $19.5 million ($20.2 million excluding provisions), a 45% decrease from $35.3 million ($37.1 million excluding provisions) in the prior year. The company said this was due to a reduction in orders from the Provinces in response to slower consumer demand, reflecting the impact of lockdown restrictions related to COVID-19. “Sequentially, consumer cannabis net revenue increased 8% over the prior quarter mainly due to completion of the transition of our fixed sales force to Great North and a $2.5 million reduction in actual net returns, price adjustments, and provisions as the company completed its product swap initiative to replace the low-quality product with higher potency product at the provinces.

“We are very pleased with our strategic and financial progress in growing our high-margin medical revenue, rationalizing expenses, strengthening our balance sheet, and reducing our cash burn during fiscal year 2021. Given ongoing challenges in the Canadian adult recreational market, our broad diversification across domestic medical, international medical, and adult recreational segments provides us with underlying strength, stability, and growth opportunities in an evolving industry for global cannabinoids. Additionally, our enviable leadership position as the #1 Canadian LP in global medical cannabis by revenue on a trailing twelve-month basis, supported by regulatory and compliance expertise, is a tailwind that we expect to enable us to ultimately expand into global adult recreational as medical regimes evolve” stated Miguel Martin, Chief Executive Officer of Aurora Cannabis.

“We further believe our Canadian adult recreational segment is poised for recovery due to our product portfolio enhancements coupled with an acceleration of new store openings and rising consumer demand. We have positioned ourselves for long-term success by delivering further improvement in our industry-leading Adjusted gross margin and substantially narrowing our Adjusted EBITDA loss compared to the year-ago period. With annual cost savings of approximately $60 to $80 million across selling, general, and administrative (“SG&A”), production cost, facility and logistic expenses, we have a clear pathway to achieve Adjusted EBITDA profitability. Importantly, our considerable cash balance of $440.9 million, substantial improvement in working capital, and strong balance sheet support our organic growth and can be utilized for opportunistic M&A, particularly in the U.S,” he concluded.

StaffMarch 10, 2021
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4min10960

Aurora Cannabis Inc.  (NYSE: ACB) has filed a new preliminary short form base shelf prospectus to offer up to $1 billion in securities. The company said that the shelf includes common shares, preferred shares, warrants, subscription receipts and debt securities and will be effective for a 25-month period. Management said that it believes the filing of this new Base Shelf Prospectus is in the best interest of shareholders and provides maximum flexibility to pursue strategic initiatives, which may include acquisitions or partnerships pursuant to the company’s previously stated global growth strategy.

The stock fell over 4% on the news and was closed at $9.85. Shares have dropped by 17% over the past 12 months.

In October of 2020, Aurora filed an offering to raise $500 million. At that time, Aurora already had over 120 million shares outstanding and 19% of those shares were shorted – meaning those traders are betting the price per share will fall. As of February only 10% of the shares are shorted. With the completion of the previously filed ATM program, Aurora said it currently has available cash resources of approximately $272 million, in addition to an undrawn revolver capacity of approximately $11 million.

On January 26, 2021Aurora closed its bought deal public offering of units for total gross proceeds of $137.9 million. The company sold 13,200,000 units at a price of US$10.45 per Unit, including 1,200,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option.

Martin added, “To further support this strategy, we have also focused on improving our cash burn, margins, and overall financial flexibility. To that point, our year over year cash use has decreased by 74% to $70.5 million, our normalized margins remain solid particularly in medical, and our recently amended credit facility gives Aurora much-improved optionality as opportunities arise. Combined with $565 million in cash on our balance sheet today, Aurora will continue to be a long-term player in the global cannabinoid market and increasingly positioned to deliver for shareholders over the long run.”

In February,  Aurora said that the total and cannabis net revenue before provisions was $70.3 million, an 11% increase over last year’s second quarter and a 2.5% sequential increase. After accounting for return and price provisions, the quarter’s total cannabis net revenue was $67.7 million, a 28% increase in cannabis net revenue over the prior year’s second quarter. The company’s net loss, which wasn’t mentioned in the press release was $292 million dollars. The net loss per diluted share was $1.74. The cash balance as of February 10, 2021, was approximately $565 million.

 


Kaitlin DomangueMarch 4, 2021
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5min8940

It’s time for your Daily Hit of cannabis financial news for March 4th, 2021. 

On the Site

Columbia Care Guides Higher for 2021

Columbia Care Inc.  (OTCQX: CCHWF)  released preliminary results for the fourth quarter and full year ended December 31, 2020 and issued 2021 guidance. Actual revenue rose 228% in the fourth quarter to $76 million versus $23 million for the same time period in 2019. 

While this is a solid performance, it does miss the analyst estimates for revenue of $79 million in the fourth quarter according to Yahoo Finance. The combined results for the fourth quarter are listed as $81 million. 

 

Cannabis Companies Go On Buying Spree

This week has been unusually active as cannabis companies have been on a major buying spree.

  • Schwazze acquires Star Buds for roughly $72.3 million
  • Greenlane acquires Eyce for an undisclosed amount
  • Terra Tech buys UMBRLA, Inc., recently rebranded as Unrivaled for an undisclosed amount

 

PACT Act to Apply to All Vaping Products

Amendments to the Prevent All Cigarette Trafficking (PACT) Act may have caused cannabis to hit yet another setback. The PACT Actt has been amended to include “electronic nicotine delivery systems”, which looks inclusive to cannabis at first glance. However, it’s described as followed:

“any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device including an e-cigarette; an e-hookah; an e-cigar; a vape pen; an advanced refillable personal vaporizer; an electronic pipe; and any component, liquid, part, or accessory of a device described without regard to whether the component, liquid, part, or accessory is sold separately from the device.”

This means that USPS can no longer deliver cannabis vape products to consumers. 

 

Delic Moves To Focus On At-Home Mushroom With Homestead Acquisition

Psychedelic media company Delic Holdings Inc. (OTCQB: DELCF) has acquired mushroom kit maker and media company Homestead brands in an all-stock deal. DELIC issued subordinate voting shares worth $50,000 and 50,000 incentive stock options were also granted to Homestead founder David Tatelman, with an exercise price of $0.58. David Tatelman will act as a consultant to the company.

 

Charlotte’s Web Moving Beyond Hemp

Well-known hemp CBD company Charlotte’s Web Holdings, Inc.  (OTCQX: CWBHF) is expanding beyond its current model with a planned acquisition of privately-held Stanley Brothers USA Holdings. Stanley Brothers is a cannabis wellness incubator currently operating in three states (Colorado, California, Florida) with expansion plans underway in eight additional states.

The acquisition though isn’t immediate. Instead, Charlotte’s Web is pursuing a five-year option plan valued at $8 million, which could be extended to seven years.

In Other News

Tryp Therapeutics Announces Application to List on OTCQB

Pharmaceutical company focused on identifying and developing clinical-stage compounds for diseases with complex and unmet medical care, announced today their application to list on the OTCQB® Venture Market OTCQB. 

 

Illinois Dispensaries See $2.88 Million in Daily Sales in February 

Illinois dispensaries sold almost $2.9 million dollars worth of cannabis last month, outpacing the record set just one month earlier. The state’s retail shops sold more than $80 dollars in adult-use cannabis last month, a slight drop from $88 million in February. 


Debra BorchardtFebruary 11, 2021
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5min11100

Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) announced its financial and operational results for the second quarter of fiscal 2021 ending December 31, 2020. Aurora said that the total and cannabis net revenue before provisions was $70.3 million, an 11% increase over last year’s second quarter and a 2.5% sequential increase. After accounting for return and price provisions, the quarter’s total cannabis net revenue was $67.7 million, a 28% increase in cannabis net revenue over the prior year’s second quarter.

The company’s net loss, which wasn’t mentioned in the press release was $292 million dollars. The net loss per diluted share was $1.74. The cash balance as of February 10, 2021, was approximately $565 million.

“Aurora had an excellent second quarter, and I’m pleased that we’re advancing nicely against the plan we laid out in September of 2020,” stated Miguel Martin, Chief Executive Officer of Aurora Cannabis. “For the period, our core revenue strength in medical and consumer was complemented by initial rollouts in vape products and concentrates. Combined, these elements are part of the proven, regulated CPG strategy we’ve adopted. Adjusted EBITDA for the quarter, while vastly improved year over year, was impacted by several decisions that we believe will clear a path for our premium product focus and more variable cost model. We are confident that this will give Aurora maximum flexibility and position the organization to drive significant cashflow in the coming quarters.”

Consumer cannabis net revenue was $28.6 million ($31.1 million excluding provisions), a 25% increase from the prior year. Additionally, Aurora’s consumer cannabis derivative products net revenue increased by $1.7 million sequentially, driven by product launches in vapes, edibles, and concentrates. Medical cannabis net revenue was $38.9 million ($39 million excluding provisions), a 42% increase from the prior-year period. The increase was primarily attributable to a continued strong performance in both the international and Canadian medical businesses. International medical sales grew by 562% over the prior year’s comparative period.

SG&A, including Research and Development, was $44.4 million in the quarter, down $49.7 million or 53% from the prior-year period as a result of the company’s Business Transformation Plan. Included in SG&A and R&D in Q2 2021 is $2.1 million of costs related to restructuring charges and severance and benefit costs associated with the Business Transformation Plan. Excluding these impacts, Q2 2021 SG&A and R&D was $42.3 million.

On January 26, 2021, Aurora closed its bought deal public offering of units for total gross proceeds of $137.9 million. The company sold 13,200,000 units at a price of US$10.45 per Unit, including 1,200,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option.

Martin added, “To further support this strategy, we have also focused on improving our cash burn, margins, and overall financial flexibility. To that point, our year over year cash use has decreased by 74% to $70.5 million, our normalized margins remain solid particularly in medical, and our recently amended credit facility gives Aurora much-improved optionality as opportunities arise. Combined with $565 million in cash on our balance sheet today, Aurora will continue to be a long-term player in the global cannabinoid market and increasingly positioned to deliver for shareholders over the long run.”

Allan Cleiren, Chief Operating Officer, has decided to retire from the company effective March 31, 2021.


Kaitlin DomangueNovember 9, 2020
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5min19740

Canadian-based cannabis company, Aurora Cannabis (NYSE: ACB) reported their Q1 earnings this morning. The results were mixed at best, with shares rising 21% on the potential for cannabis legalization under a Biden administration. Unless otherwise stated, these figures are in Canadian dollars. 

The company’s adjusted gross margin before fair value adjustments on total cannabis net revenue didn’t waver much quarter to quarter, with Aurora Cannabis reporting a 48% adjusted gross margin compared to 50% in Q4 2020. Before fair value adjustments, the company’s adjusted gross margin on cannabis net revenue was 52%. 

Consumer Cannabis 

Aurora reported a slight increase in total and net revenue in Q1, with numbers reaching $67.8 million. Q4’s revenue totaled $67.5 million, so while the increase was small, it was there. 

Consumer cannabis net revenue, however, was down 3% quarter over quarter, reaching a stop at $34.3 million. The adjusted gross margin before fair value adjustments on consumer cannabis net revenue was 38% compared to 35% in the prior quarter. Aurora cites sales mix shifting towards higher margin derivative products as the reason for this increase. 

One area where Aurora really shined in Q1 is in consumer cannabis extracts, with the net revenue increasing by $3.6 million sequentially. Aurora says this was driven by their focus on high-growth extracts such as vapes, edibles, and concentrates, plus a $1.1 million increase in US CBD. 

Medical Cannabis

The company reported a 4% sequential increase in medical cannabis net revenue, ultimately capping out at $33.5 million. Aurora primarily attributes this growth to their strong international medical cannabis presence, which grew a whopping 41% quarter over quarter. 

“Our Q1 2021 results are transitional but do highlight successes across a number of diverse profit pools,” said Miguel Martin, CEO of Aurora. “We remain the leader by revenue in the high-margin Canadian medical market, our international medical business experienced more than 40% net revenue growth this quarter, and our CBD brand Reliva is #1 ranked by Nielsen in the U.S. CBD sector.”

The adjusted gross margin on medical cannabis before fair value adjustments was 59% versus 67% in the prior quarter. This is excluding $2.6 million in ramp up costs at Aurora Nordic 1, which is a large cannabis facility located in Denmark. 

EBITDA

Aurora’s adjusted EBITDA loss was $57.9 million in Q1, with the company including restructuring payments such as contract and employee termination costs of $47.4 million. Excluding these impacts, the adjusted EBITDA loss as defined under the term credit facility is $10.5 million. Aurora says they remain on track to achieve a positive adjusted EBITDA next quarter. 

Cash Use

Aurora Cannabis used $25.2 million cash in Q1 to fund company operations, and used $47.4 million for contract and employee termination costs. This is similar to the prior quarter, however, the use of cash showed significant progress. Cash used to pay for capital expenditures in the first quarter was $15 million compared to $32 million in the prior quarter, as many of their projects are now wrapping up and completing. 

Increased net working capital used $37.0 million in the quarter, driven by a $13.8 million increase in accounts receivable and a $25.1 million increase in inventory.

“While we are not satisfied with our past performance in the growing Canadian consumer business, we have a sense of urgency in the execution of our tactical plan to grow profitable market share. Our efforts are directed at delivering the highest quality products, refocusing on our leading premium and ultra-premium brands, better allocating our sales and marketing spend, and executing key account partnerships at both the province and retail levels.”


StaffOctober 30, 2020
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3min13970
Aurora Cannabis Inc.  (NYSE: ACB) officially filed its final short form base shelf prospectus and suggested that its revenue will be at the high end of the previous guidance. The company said that following the divestiture of non-core subsidiaries during fiscal 2020, net revenue for the three months ending September 30, 2020, is expected to be comprised almost entirely of cannabis net revenue and expected to be at the high end of our previously announced $60 million to $64 million range.

This is still a sequential decline from the $67.5 million in the fourth quarter, which declined 3% from the prior quarter. The company has continued to see its revenues fall.

Aurora stock was falling over 4% to lately sell at $3.92. It’s a far cry from the 52-week high of $47. The new offering, which could deliver as much as 100 million new shares, will dilute the current shares. Aurora Cannabis already had over 120 million shares outstanding and 19% of those shares are shorted – meaning those traders are betting the price per share will fall.

Aurora also said it expects adjusted gross margin before fair value adjustments on cannabis net revenue to be at the high end of its previously announced 46%-50% range. SG&A costs (including R&D) for the three months ended September 30, 2020, are expected to be in the low $40 million range after excluding certain one-time contract and employee termination costs. Aurora continues to expect to achieve positive adjusted EBITDA in the second quarter of fiscal 2021.

The filing of the shelf prospectus is expected to provide financial flexibility to execute against previously stated business objectives. The company expects to be in full compliance with all financial covenants as of September 30, 2020, under our amended and restated credit facility. Aurora’s relationship with the lending syndicate remains strong and there are no new obligations to repay any portion of the credit facility until its stated maturity date.

 


Debra BorchardtOctober 27, 2020
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4min15250

Canadian cannabis company Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) announced it has completed the previously filed At-The-Market program. In addition to that, it has filed a new preliminary short form base shelf prospectus with securities regulators in each of the provinces of Canada, except Quebec, and a corresponding shelf registration statement on Form F–10  with the United States Securities and Exchange Commission. This filing will allow Aurora to make offerings of up to $500 million of common shares, preferred shares, warrants, subscription receipts, and debt securities, or any combination thereof during the 25-month period that the base shelf prospectus remains effective.

Aurora cannabis already had over 120 million shares outstanding and 19% of those shares are shorted – meaning those traders are betting the price per share will fall. Shares were lately selling at $4.37 in early trading, but the price to sales according to Yahoo Finance is $2.14. This is a tremendous drop from the company’s year high of $47 and not far from the 52-week low of $3.93.

With the completion of the previously filed ATM program, Aurora said it currently has available cash resources of approximately $272 million, in addition to an undrawn revolver capacity of approximately $11 million.

Declining Revenues

Last month, Aurora said delivered its official results for the fourth quarter of fiscal 2020 following up from a recent preannouncement of unaudited numbers. The company reviewed the drop in quarterly revenue, but investors were more disappointed that the company suggested revenues could continue to decline.  Aurora said its net revenue was expected to be in the range of $70 million and $72 million, versus $75.5 million in the third quarter. The company said that cannabis net revenue is expected to be between $66 million and $68 million, a sequential drop from the third quarter net revenue of $69.6 million. The actual number came in at $72.1 million, a sequential drop of 5%. Cannabis net revenue was $67.5 million in Q4 2020, a 3% decrease from the prior quarter.

At the time, new CEO Miguel Martin said, “Aurora has slipped from its top position in Canadian consumer, a market that continues to support material growth and opportunity. We look to expand beyond the value flower segment, leverage our capabilities in science and product innovation, and put our effort on a finite number of emerging growth formats. This entails prioritizing our San Rafael, Aurora and Whistler premium brands in flower, pre-rolls and vapor, which will be shortly followed by strategic marketing and innovation efforts in concentrates and edibles.”


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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