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Aurora shares down 11% as cannabis producer slows expansion amid declining revenue

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

Aurora US Shares

ACB, -7.32%

ACB, -6.61%

fell over 11.6% in the extended session.

The company reported first-quarter fiscal net income attributable to Aurora of C $ 12.8 million, or one penny per share, compared with C $ 105.5 million, or 12 cents per share, in the prior-year period.

Aurora said it sold $ 30.5 million in medicinal plants; Recreational sales fell sequentially by 33 percent to $ 30 million, which Aurora said was due to more provincial orders in the province. Aurora sold $ 10.3 million in cannabis wholesale. Overall, the company sold 12.5 tonnes of cannabis and produced 41.4 tonnes during the third quarter.

Aurora said it plans to immediately stop building one of its weed growing facilities in Denmark, which it says will save about $ 80 million over the next 12 months. The company also said it would delay the completion of construction and final activation of its Aurora Sun facility in Canada.

Aurora reported gains amid a brutal period for some of the world's largest cannabis companies. Before the opening bell, Canopy Growth Corp.

CGC, -14.38%

WEED, -14.27%

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

TLRY, -5.35%

, which exceed Wall Street's revenue estimates, and Cronos Group Inc.

CRON, -6.06%


CRON, -6.04%

that has lost revenue expectations.

In the statement, Aurora said it has secured the commitment of investors holding C $ 155 million in its March 2020 debentures to voluntarily convert their debentures. Remaining debt holders will have the option to convert their debentures at a discount.

“To capitalize on this global market, we recognize the need to be agile and proactive. To improve our financial flexibility and position ourselves to take full advantage of future growth opportunities, we have also taken decisive steps to immediately strengthen our balance sheet, ”said Terry Booth, CEO of Aurora, in a statement.

After years of mispronouncing the San Rafael ‘71 brand, teleconferencing executives pronounced it the way California locals say the brand was named "San Rah-fell."

Prior to Thursday's prolonged session changes, Aurora shares fell 34% this year, as ETFMG Alternative Harvest ETF

MJ, -4.55%

fell 31%.

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