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Friday, June 9, 2023

Cannabis Weekly Round-Up: Aurora Reports C$75.1 Million Quarterly Loss

A range of cannabis companies have released financial reports over the past week.

Meanwhile, an ailing Canadian producer confirmed it will eliminate 180 positions to save C$15 million per year.

Keep reading to find out more cannabis highlights from the past five days.

Financial reports flood the market; results mixed

Players in the cannabis industry offered a closer glimpse at their financial progress, with several issuing reports to shareholders and the open market. Here are the companies that released reports this past week:

  • Aurora Cannabis (NASDAQ:ACB,TSX:ACB) reported financials for its second fiscal quarter of 2022, recording a loss of C$75.1 million. Even so, the company celebrated its total cannabis net revenue and touted international business opportunities during a conference call with analysts, according to a report from the Canadian Press. “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,” CEO Miguel Martin said.
  • Neptune Wellness Solutions (NASDAQ:NEPT,TSX:NEPT) posted revenue of US$18.4 million for its second fiscal quarter of 2022, which represents a 17 percent increase from the previous quarter. “We delivered our fourth consecutive quarter of sequential revenue growth and reached positive gross margins, driven by acceleration of our Cannabis sales and supply chain improvements for Sprout Foods,” said President and CEO Michael Cammarata.
  • Canopy Growth (NASDAQ:CGC,TSX:WEED) shared a net loss line of C$115.4 million for its second fiscal quarter of 2022, despite a net revenue achievement of C$141 million. The company is cutting down its losses as it continues to try to reduce costs and focus on key areas of its portfolio. “With a renewed sense of urgency, we are focused on achieving profitability in Canada by taking additional steps to simplify our business and optimize our expenses, while making strategic investments in key growth areas,” CEO David Klein said in a statement.
  • Clever Leaves Holdings (NASDAQ:CLVR) reported preliminary results for its fourth fiscal quarter of 2021, as well as the full 2021 year; it also revealed its outlook for 2022 and informed shareholders of a new leadership transition plan. The company has picked a successor for CEO Kyle Detwiler — Andres Fajardo, the newly selected CEO, said it is an honor for him to obtain this role as a co-founder of the company. “I look forward to continuing to work closely with Kyle and the board to execute Clever Leaves’ strategy,” Fajardo said.

HEXO fires staff in effort to cut costs

HEXO (NASDAQ:HEXO,TSX:HEXO) will fire 180 people as part of its newly announced “The Path Forward” strategy.

“We believe we have the right plan to maintain HEXO’s position as the number one cannabis company in Canada and remain focused on our growth objectives,” President and CEO Scott Cooper told investors.

According to HEXO, one half of the fired staff is connected to the recent closure of its Stellarton facility.

“The remaining reductions are related to reducing back-office positions where there is significant overlap as a result of recent acquisitions and simplifying HEXO’s operating model to drive clearer accountability,” the firm said.

Despite the layoffs, shares of the company increased in value over the past trading week. As of Friday (February 11) at 10:44 a.m. EST, shares of HEXO sat at C$0.90 in Toronto, an 11.11 percent uptick from the start of the week.

The layoffs at HEXO come after a notice from a disgruntled investor who is looking to nominate a new board of members for the company.

Cannabis company news

  • Leafly Holdings (NASDAQ:LFLY) completed its launch on the NASDAQ. “Now, with access to new capital and momentum across our industry, we are poised to execute our growth strategy and continue making cannabis a force for positive change in our world,” CEO Yoko Miyashita said.
  • The Flowr Corporation (TSXV:FLWR,OTC Pink:FWPF) confirmed the first harvest at its European division based in Portugal. “There are several reasons to be in Portugal — the regulatory landscape is changing, the cost structure is highly competitive and there are no real competitors in the premium cannabis market yet,” Darryl Brooker, CEO of Flowr, told investors.
  • TILT Holdings (NEO:TILT,OTCQX:TLLTF) issued a statement regarding a Pennsylvania Department of Health (DOH) vaporization product recall. “While we do not have enough information available to comment on the DOH’s stance with respect to the use of certain additives, we want to make it clear to our patients, investors and other stakeholders that none of our products were named in the recall,” TILT CEO Gary Santo explained to the market.
  • Sundial Growers (NASDAQ:SNDL) has been given a 180 day compliance extension period with the NASDAQ in order to get its share price back to the exchange’s US$1 minimum requirement. “The Company intends to monitor the closing bid price of its common shares and has given written assurance to Nasdaq that it will, if necessary, implement available options to regain compliance with the minimum bid price requirement, including a reverse stock split,” Sundial said.

Don’t forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

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