Aurora Cannabis sees uptick in pot sales in Q3, books $50.9M EBITDA loss 

A boost in cannabis sales helped Aurora Cannabis beat analyst revenue expectations​ in its third quarter despite booking a $46.7 million impairment charge. The company also trimmed costs in an effort to reach profitability this year, but didn't meet analysts' EBITDA forecasts. The Edmonton-based company said it made $78.4 million in revenue in the three-month period ending Mar. 31, while its adjusted EBITDA came to a $50.9 million loss. Analysts expected Aurora to report $66.3 million in revenue in the quarter, according to Bloomberg data. The company was also expected to report an EBITDA loss of $38.3 million. Domestic cannabis sales boosted Aurora's top line with "Cannabis 2.0" products driving its pot revenue to $69.6 million, an increase of 32 per cent from the prior quarter. It also took a $2.9-million write-down on cannabis product returns in the quarter, the company said. ​

MediPharm Labs lays off 10% of staff, to take impairment loss of up to $15M

Barrie, Ont.-based cannabis processor MediPharm Labs is laying off 10 per cent of its staff, roughly 23 people, while taking an inventory impairment loss ranging from $10 million to $15 million after releasing a first-quarter update. Executives will also take a voluntary 10-per-cent salary reduction, MediPharm said. One of the staff departures is MediPharm's chief strategy officer Braden Fenske. Canaccord Genuity analyst Kimberly Hedlin said the loss of MediPharm's contract with Hexo may have played a roll in the company's writedowns. Separately, MediPharm also announced a three-year manufacturing deal with cannabinoid producer Avicanna on Thursday.   

Charlotte's Web books US$21.5M in Q1 revenue, expects rising CBD sales

U.S. CBD producer and distributor Charlotte's Web released its first-quarter results Thursday, recording US$21.5 million in revenue while booking a net loss of US$11.5 million. Revenue figures were in line with a previously-announced forecast but were down about five per cent sequentially due to lower sales in its ecommerce and specialty food businesses. The company said it expects to see sales growth of 10 to 20 per cent this year as customers suffering from stress and anxiety due to COVID-19 could lead to an uptick in CBD sales, and return the company to positive EBITDA. 

Sunniva discloses court filing made by creditors seeking bankruptcy order

Vancouver-based Sunniva disclosed Thursday it has been named in a lawsuit, as one of its creditors filed a notice to seek a bankruptcy order against the company. Sunniva said Matrix Venture Capital Management filed the notice in regards to a US$6 million promissory note it obtained from one of its property holdings. A hearing for the action has been scheduled in a B.C. court on June 1, with Sunniva stating it intends to defend the action. Earlier this month, Sunniva said in a news release that a separate court filing was made regarding a possible default on the mortgage on one of its properties in B.C.'s Okanagan Valley. 

Inner Spirit discloses ‘going concern' while recording $4.2M loss in Q4

Canadian cannabis retailer Inner Spirit reported fourth-quarter results late Wednesday, recording $3.8 million in revenue and a net loss of $4.2 million. The company, which operates and franchises 47 licensed cannabis stores across Canada, expects to open another 30 shops by the end of the year. However, the company currently has just $2 million of cash available on its balance sheet. The company's filings were prepared on a going concern basis​ amid varying liquidity and market risks it is exposed to. As of May, Inner Spirit has yet to achieve positive cash flow, the company said in its filing. ​

Hexo discloses NYSE listing not in compliance with requirements

Quebec-based cannabis producer Hexo said late Wednesday that the company received a notice​ from the New York Stock Exchange that its stock no longer complied with its listing standards. The notification comes as Hexo's stock has fallen below the US$1.00-per-share average closing price for 30 straight trading days, the company said in a release. Hexo can return back to compliance with the NYSE's regulations if its stock can trade above the US$1.00 mark on the last trading day of the month and maintain it for a concurrent 30-trading-day average within the next six months. 
 

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