Flowr reports $5.4M net loss in Q2, revenues up 6% to $2.3M
Toronto-based cannabis producer Flowr Corp. reported a $5.4 million net loss in its second quarter on Wednesday, compared to a profit of $11.2 million a year earlier. The losses come as the company reported higher impairment and finance costs in the three-month period, Flowr said in its MD&A filings. Flowr said its net revenue rose about six per cent to $2.3 million in the quarter, and that it sold 419 kilograms of dried cannabis, an improvement of 23 per cent from last year. Jefferies analyst Owen Bennett said in a report that the quarter shows Flowr is on track to be cash-flow-positive by the second part of the year, as there is "clear demand from its premium product,” adding that its production facility is not yet running at full capacity.
Fire & Flower nabs first Toronto location following Meta divestiture
Cannabis retailers Fire & Flower and Meta Growth took part in a rare store swap on Thursday. Fire & Flower is taking Meta Growth's Toronto location off its hands, for $750,000, plus the net working capital of the business. Meta Growth opted to sell the store following the company's merger with High Tide, which operates another pot shop several blocks away. Meta Growth announced it acquired the Toronto store from a provincial retail licence lottery winner last month in a deal that was structured as a "share purchase, with the purchase price paid all in cash." It did not disclose specifics. The store will be Fire & Flower's first in Toronto, while another storefront the company has leased since late 2019 remains closed.
CTT Pharmaceutical sues Aurora Cannabis over sublingual strips deal
Hamilton-based drug delivery producer CTT Pharmaceutical filed a statement of claim with the Ontario Superior Court against Aurora Cannabis, the company announced on Thursday. CTT is seeking compensation from the Edmonton-based cannabis producer for a "denial of contractual commitments," which includes expenses, royalties due, lost royalties and damages. CTT said in a statement that Aurora ended a deal between the two companies to release sublingual cannabis-infused strips to the medical marijuana market shortly after the product was launched in Oct. 2019. Separately, CTT appointed former Aurora executive Shane Morris to its advisory board on Thursday.
Alberta's pot business on track to double losses in next fiscal year to $30M
Alberta's cannabis business is on track to lose $30 million in the next fiscal year, the province said Thursday in its fiscal update. Alberta Gaming, Liquor and Cannabis, the agency responsible for regulating cannabis, said it booked a $14-million loss in the fiscal 2019-2020 year, which it expects to more-than-double in the fiscal 2020-2021 year. Alberta also forecast it should receive about $79 million in revenue from cannabis taxes in the next fiscal year. Alberta consumers have purchased $242.3 million worth of cannabis products in the first six months of the year, up from about $92.7 million in the same period a year earlier, according to Statistics Canada.
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