The Daily Hit: November 12, 2018

It’s time for your Daily Hit of cannabis financial news for November 12, 2018.

On The Site

Aurora Cannabis (ACB) posted a 55% sequential gain in revenue for the fiscal first quarter of 2019 with $29.6 million over the fourth quarter’s $19.1 million. It was a 260% jump over the same time period for last year, which was $8.2 million. The quarter ended on September 30, so these numbers do not include sales from adult use cannabis that became legal on October 17.

However, the company did note for the first two weeks to October 31, 2018, it was ranking at the top or among top-selling products and brands in many of the provinces that it was committed to supplying.

Unfortunately, the Q1 2019 gross profit was $8.1 million, compared to a $20.6 million in Q4 2018. Aurora said that the change in gross profit during the period was partially attributable to higher sales of inventory and lower fair value gains on changes in biological assets. Having said that the first quarter net income jumped to $104.2 million versus last year’s $3.6 million in Q1 2018. The company attributed the increase to the unrealized non-cash gain on derivatives and marketable securities.

In Other News

Auxly Earnings

Auxly Cannabis Group Inc.  (OTCQX: CBWTF) reported its financial and operational results for the three and nine months ended September 30, 2018. The revenue for the quarter was $512,000 versus zero in the previous year for the same time period. The total loss was $28.3 million for the quarter. The company has  $236 million in cash and cash equivalents earmarked for funding Auxly’s streaming partners, wholly-owned subsidiaries, downstream distribution efforts and general and administration costs. The increase in the cash and working capital balances came from the company raising $215 million in debt and equity financings year to date in addition to raising $95,017,000 in warrant and broker warrant unit exercises.

MariMed

MariMed Inc. (OTCQB: MRMD) has invested $30 million into GenCanna Global Inc. and the companies have created a strategic partnership, including a long-term supply agreement. GenCanna will use the money to expand its production capacity, and extend its position in high-quality hemp CBD production, with fully legal sales throughout the U.S. and internationally. MariMed said it intends to create a product and branding business unit focused on the development and distribution of Hemp CBD-derived products.

“MariMed’s renowned product development expertise, combined with GenCanna’s leadership position in premium Hemp CBD, will enable us to expand the Hemp CBD product category by creating compelling new consumer brands, and by developing powerful distribution channels,” said Robert Fireman, President, and CEO of MariMed. Mr. Fireman continued, “GenCanna shares our values – including our ‘best practices values in producing premium-quality, consistent, and compliant Hemp CBD oils and extracts. We believe many of the nation’s leading retailers will soon provide Hemp CBD products to their customers, in response to popular demand.”

Debra Borchardt

Debra BorchardtDebra Borchardt

Debra Borchardt is the CEO, Co-Founder, and Editor-In-Chief of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Masters degree in Business Journalism from New York University.


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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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