Canada's Aurora Cannabis reported a net loss of C$618.8 million in its latest quarterly report. Meanwhile, the Canadian government officially announced a review of the country's cannabis program.
This past week in the cannabis sector, Aurora Cannabis (NASDAQ:ACB,TSX:ACB) posted severe losses for its fourth fiscal quarter as the Canadian producer struggled with revenues.
Meanwhile, the Canadian government said it wants to get to the bottom of how its domestic cannabis industry is doing almost four years after legalization. Keep reading to find out more cannabis highlights from the past five days.
Aurora reports slowdown in revenues
Losses continue to pile up for Canada's Aurora, which shared less-than-stellar numbers in its most recent financial report.
The company's net loss increased to C$618.8 million in its fourth fiscal quarter for 2022, which ended on June 30.
Aurora blamed its higher net loss on non-cash impairment charges “triggered by changes in cannabis market conditions, and in the current capital market environment including higher rates of borrowing and lower foreign exchange rates.”
The company reported C$50.2 million in revenue, an 8 percent drop from the same quarter the previous year.
“We continue to expect a positive adjusted EBITDA run rate by December 31, 2022 and remain on track with our previously announced cost saving targets of up to $170 million in annualized savings,” CEO Miguel Martin said.
He also noted that the company has a positive outlook on its medical cannabis efforts abroad.
Canada embarks on official review of cannabis program
The Canadian federal government wants some answers about the progress of its adult-use cannabis program.
An expert panel has been tasked with examining the entire market and the current legal landscape. The group will be led by Morris Rosenberg, but the rest of the panel has yet to be determined.
The review will be broad in scope and will encompass several elements of the industry.
According to a report from the Canadian Press, Liberal MP Nathaniel Erskine-Smith said that while Canada has been a pioneer for the entire cannabis market, "we didn't get it perfect, we didn't get it exactly right for the first time."
This review process has been in the making for some time now. With adult-use legalization, the federal government added a provision mandating a review of the entire program after three years. As of 2022, the review is already a year late.
The regulated cannabis industry has been clamoring for some sort of front-facing engagement from the federal government, beyond regulation, to review and discuss the challenges affecting the market right now.
“It's very, very rare in a sense that an industry gets an opportunity for a legislative review of how things are going. That's quite exceptional," George Smitherman, president and CEO of the Cannabis Council of Canada, previously told the Investing News Network. "And accordingly, it's really, really vital that as a regulated sector, we take all opportunities to talk to the government about how things could evolve to be better.”
Cannabis company news
- Halo Collective (NEO:HALO,OTCQB:HCANF)announced the consolidation of its issued and outstanding common shares; the company's total shares will be reduced from 44,744,296 to 8,948,859.
- Ayr Wellness (CSE:AYR.A,OTCQX:AYRWF) will launch its Lost in Translation cannabis brand in Arizona, Florida, New Jersey and Pennsylvania. “Flower remains the predominant method of consumption across the country, so it is important to have brands that range from value to premium, including Road Tripper, Kynd and now LIT,” said Jonathan Sandelman, founder and CEO of Ayr Wellness.
- Tilray Brands (NASDAQ:TLRY,TSX:TLRY)confirmed its Tilray Medical division in Italy has obtained approval to import and distribute its own medical cannabis oral solution, THC25. “We remain dedicated and focused on working with regulators across international markets to advocate for responsible cannabis regulations, best practices, and a reliable source of quality products,” said Denise Faltischek, chief strategy officer and head of international business at Tilray.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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