November 30, 2016 - By Ellis Scott
Aurora Cannabis Inc (OTCMKTS:ACBFF) recorded a small decline of 3.12%, in its share value, during the November 29 trading session, as it continues to slowly rise in the stock market. During the last week, the stock has successfully added over $0.15 to its share value, thus far. The recent decline could be a result of the company’s 1Q2017 financial report. Yesterday, ACBFF recorded a net loss of $5.6 million, for its 3Q2016. As such, it remains to be seen if the decline is temporary or would continue as time goes on.
The company announced yesterday that it has a cash position of $50 million, of which $34 million was acquired through debt and equity financing, after September 30, 2016. Moreover, ACBFF also plans to construct a new 650,000 sq ft facility, so as to increase production to 70,000 kg annually. The management also noted that the new facility is state-of-the-art, which could result in potentially significant savings, on a per gram basis. Aurora also announced that it was experiencing the fastest patient registration rate in the industry, with over 10,800 active patients registered so far.
As far as the finances are concerned, ACBFF recorded a revenue of $3.1 million, as compared to no revenues, for the previous year. On a quarter-over-quarter basis, the company recorded a 151.7% increase in revenue. Moreover, the management also stated that it was on target to achieve record sales in a single month, given that revenues for the month of November were expected to be in excess of $1.6 million. During this period, the company also acquired CanvasRx, the largest medical cannabis outreach and counseling service, in Canada. It should be noted here that Canvas has a total of 19 locations, across Alberta and Ontario.
“Our industry-leading pace of patient registration, reflected in our rapid revenue growth, is a clear validation of the strength of our brand and our ability to successfully execute on our business strategy,” said Terry Booth , CEO. “Based on our operational strength and our position as one of the recognized leaders on the capital markets in the cannabis sector, we were able to significantly strengthen our balance sheet both during and subsequent to Q1 2017. Our current cash balance of $50 million is one of the strongest in the sector, and positions us exceptionally well to continue executing on our growth strategy, particularly with the pending federal legalization of adult consumer use, and our plan to construct one of the largest envisioned cannabis facilities in the sector.”
Aurora Cannabis is a fairly new entrant in the medical marijuana industry, with the company beginning commercial operations, only recently. The true potential of the company still remains to be seen, but its latest acquisition, CanvasRx, is sure to help it improve its financial position, by the end of the 2Q2017. The company has been experiencing a surge in patient registrations and given that ACBFF handles the growing and marketing on its own, it would receive relatively higher returns.
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By Ellis Scott