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

During this past week the market saw a wide range of financial reports from cannabis companies in the market.

An ailing Canadian cannabis producer confirmed it will eliminate 180 positions in the company as a way 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 with mixed results

Players in the cannabis industry offered a closer glimpse into their financial progress as several companies issued reports to shareholders and the open market.

Here are the companies that released reports this past week:

  • Aurora Cannabis (NASDAQ:ACB,TSX:ACB)reported its financials for the Q2 fiscal 2022 period. The firm reported a loss of C$75.1 million for the quarter. Despite the losses, the company celebrated its total cannabis net revenue, as it also 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,” Miguel Martin, CEO of Aurora, said.
  • Neptune Wellness Solutions (NASDAQ:NEPT,TSX:NEPT)reported its fiscal Q3 2022 segment. The firm posted a revenue line of US$18.4 million, which represents a17 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 Michael Cammarata, president and CEO of Neptune Wellness.
  • Canopy Growth (NASDAQ:CGC,TSX:WEED)reported its Q2 of the fiscal 2022 period, indicating a net loss line of C$115.4 million, 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 a preliminary fiscal Q4 and full 2021 year results alongside the introduction of its official 2022 outlook. In addition to its financial report, Clever Leaves informed shareholders of a new leadership transition plan. The company has picked a successor for Kyle Detwiler as CEO of the company. Andres Fajardo, the newly selected CEO, said it was 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 recently announced “The Path Forward” strategy to cut costs for the firm.

“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,” Scott Cooper, president and CEO of the company, said in a statement to 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 company said.

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

The layoffs come for HEXO after facing 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 public stock 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,” Leafly CEO Yoko Miyashita said.
  • The Flowr Corporation (TSXV:FLWR,OTC Pink:FWPF)confirmed the first harvest of 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 said.
  • Sundial Growers (NASDAQ:SNDL)has been given a 180 day compliance extension period with the NASDAQ in order to re-establish its stock price back with the US$1 minimum requirement from the stock exchange. “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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