Aurora reports strong revenue growth on medical sales
Aurora Cannabis Inc., one of the bigger Canadian-based pot producers, reported its revenue more than tripled in its fiscal first quarter, while providing a brief glimpse on how the initial sales of recreational marijuana have fared. Aurora said it made $29.7 million in the quarter ending Sept. 30, marking a 260-per-cent surge from the previous year. However, about two per cent of that can be attributed to recreational sales, the company said. While net income was up a whopping 2,826 per cent at $104.1 million, much of that came from gains made in derivatives and managed securities. The company’s adjusted EBITDA came in at a $61.5 million loss.
CannTrust shakes out management team
CannTrust Holdings Inc. confirmed on Monday to BNN Bloomberg’s David George-Cosh that two leading executives, including its head of marijuana production, have departed the company for future opportunities. The move comes amid a country-wide supply shortage in the early days of pot legalization and both executives were instrumental in building the company’s cannabis production facilities. The moves come shortly after CannTrust welcomed former Tangerine chief executive Peter Aceto as its CEO last month.
B.C. town looks to pot after forestry bust
A small town in British Columbia is eyeing the cannabis jobs for its local workforce following the decline of the province’s forestry sector, The Canadian Press reports. Merritt, B.C. might be the next home of Emerald Plants Health Source Inc., bringing hope to the small southern Interior town following ongoing challenges in the lumber industry. The facility is expected to eventually employ more than 200 people in a range of jobs, from low-skill trimmer roles to higher-paid management jobs.
Black market should be consulted to fix supply shortage
People who have participated in the black market say the now-legal industry is hurting itself by keeping out former criminals that may know a thing or two about growing pot amid industry-wide supply shortages. In an interview with the CBC, an Alberta-based man - who was granted anonymity for legal reasons - said legalization wouldn't have been off to such a rocky start if the black market was better consulted by major pot producers. "They dropped the ball, that's for sure. They made the black market stronger, really, by what they've done,” the person said.
Medical patients concerned about pot supply crunch
The supply crunch is also hurting medical cannabis patients who are worried that they may not receive timely access to their medically-authorized marijuana, The Globe and Mail reports. The supply shortage could raise concerns about how Canada is developing its two-track market for medical and recreational marijuana. Pot producers don’t have a requirement to keep up with inventory levels for the medical market but can fulfill the larger, more lucrative procurement contracts with provinces for recreational marijuana.
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US$340 million
– The losses incurred so far this year by investors who took short positions on Tilray Inc., according to S3 Partners, a short-selling research firm.
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