Market News

Centurion Minerals Ltd. (TSXV: CTN) (the "Company" or "Centurion") is pleased to announce it has acquired the right to earn a 100% interest in the Casa Berardi West Gold Project (the "Project") located in the prolific gold producing, Harricana-Turgeon greenstone belt of the central Abitibi Subprovince of north-eastern Ontario.

HIGHLIGHTS

  1. Historical exploration includes more than 70 RC drill holes returning encouraging results that include 18 samples greater than 1,000 ppb (1 g/t) Au and the highest returning 38,000 ppb (38g/t) Au;
  2. The Project is situated along structural corridors hosting world-class discoveries, operating mines, and significant past-producing operations, including:
  1. Hecla Mining's Casa Berardi Mine located 20 km NE with 3 million ounces ("Moz") Au in past production and 4 Moz Au in reserves and resources1;
  2. Aurileus Minerals' Mikwam Property with 1.81 million tonnes ("Mt") @ 2.34 g/t Au for 136,000 oz2;
  3. AMEX Exploration's recent Perron gold discovery that includes a drill hole returning 15.52 g/t Au over 15 .85 metres; located 12 kms from the Project3; and
  4. Normetal Mine's historical production of 10 Mt @ 2.2% Cu, 5.4% Zn, 0.5g/t Au, and 44.5 g/t Ag4;
  1. Numerous iron formations and shear zones proximal to a late granitic pluton has gold deposit analogies to the Musselwhite gold mine in northern Ontario; and
  2. Excellent access and infrastructure.

David Tafel, CEO of the Company commented: "We are very excited to have acquired a Project that is in the middle of a region of current and historical production and in close proximity to very recent new gold discoveries. Historic exploration and significant drill hole information on and near the Project claims has given our geological team confidence we can advance exploration quickly. As Centurion returns to its historic focus of mineral exploration, we believe the Project provides shareholders with an excellent opportunity for potential value creation."

Following approval of the previously announced spin-out of the Company's (cannabis) subsidiary at the upcoming Annual General and Special Shareholder Meeting on August 12th, 2022, and TSX Venture Exchange (the "TSX-V") approval of the (Casa Berardi West) Project transaction, the Company will immediately apply for a resumption of trading.

CASA BERARDI WEST PROJECT

The Project consists of 3 non-contiguous claim groups (Noseworthy, Newman and Hepburn) comprising a total of 11,600 acres or 4,700 hectares (the "Properties"), strategically located northeast of Cochrane, Ontario, in the metal endowed central north Abitibi greenstone belt (Figure 1).

Cannot view this image? Visit: https://images.newsfilecorp.com/files/4407/133013_3066039a74a01828_003.jpg

Figure 1
. Regional location of the Casa Berardi West claim groups.

To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/4407/133013_3066039a74a01828_003full.jpg

Structurally, the three claim groups are proximal to regional crustal scale deformation zones. The Noseworthy claim group lies just north of the Casa Berardi Deformation Zone, integrally related to the Mikwam gold deposit of Aurelius Metals Inc. to the east, and the Casa Berardi gold mine owned and operated by Hecla Mining Company. The Newman claim group hosts part of the Mikwam River Fault. The Hepburn claim group lies along an extension of rocks and structures believed to be related to the former Normetal VMS mine (15 kilometers away) and more recently to the high-grade gold discovery by AMEX Exploration Company at the Perron property located 12 kilometers to the east of the Hepburn claims (Figure 2).

Mineralization on the Project consists of:

  1. Banded iron-formation (BIF) hosted sulphides with indications of gold mineralization
  2. Shear-hosted gold mineralization
  3. Disseminated copper-bearing sulphide mineralization in tuffaceous rocks.

Cannot view this image? Visit: https://images.newsfilecorp.com/files/4407/133013_3066039a74a01828_004.jpg

Figure 2. Geology, deposits and structural environment of the Casa Berardi West claim groups.

To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/4407/133013_3066039a74a01828_004full.jpg

Noseworthy Claim Group

The Noseworthy claim group has seen little systematic historical exploration despite its strategic location just north of the Casa Berardi Deformation Zone (CBDZ) that hosts the Mikwam gold deposit owned by Aurelius Minerals. The Mikwam gold deposit hosts a 43-101 compliant inferred resource of 1.81 million tonnes at an average grade of 2.34 g/t Au for a 136,000 contained ounces of gold at a reported cut-off grade of 1 g/t Au.

Newman Claim Group

The Newman claim group is dominated by a property long banded iron-formation. In 1987 Chesbar Resources ("Chesbar") completed 72 reverse circulation (RC) drill holes totaling 2,261 metres (m). Sampling of the tills at the bedrock-overburden interface and above bedrock resulted in one assay of 38,000 ppb (38g/t) gold (AFRI 42H08NE0048) and a number of others grading above 1,000 ppb (1 g/t) gold (Table 1).

Table 1. Highlighted results of the RC drilling, Chesbar Resources, 1987.

Hole No.Line No.Stationppb Aug/t Au**Location Comments
SRE-87-09L24W7+51S8200.82 1 sample above bedrock
SRE-87-13??7+04S13001.30 1 sample above bedrock
SRE-87-26L10E5+03S45004.50 3 samples above bedrock
SRE-87-31L21E4+48S24002.40 1 sample above bedrock
SRE-87-53L67E6+69S49004.90 4 samples above bedrock
SRE-87-53L67E6+69S10001.00 3 samples above bedrock
SRE-87-57L76E7+02S15001.50 2 samples above bedrock
SRE-87-59L80E7+69S377*0.38 bedrock
SRE-87-60L82E8+32S1700.02 1 sample above bedrock
SRE-87-60L82E8+32S38,00038.00 3 samples above bedrock
SRE-87-65L92E8+63S21002.10 1 sample above bedrock
SRE-87-70L102E8+50S45004.50 1 sample above bedrock
SRE-87-70L102E8+50S8100.81 2 samples above bedrock

 

* 0.011 oz/ton converted to ppb from 34.28 g/t Au in 1 Troy ounce per short ton.
** Converted by Centurion

Chesbar followed up the positive RC results with 8 diamond drill holes totaling 1,518m, but failed to explain the numerous elevated gold results from the RC drill program. Subsequent companies relied on airborne magnetic and electromagnetic surveys to generate drill targets for 2-5 drill hole programs.

Hepburn Claim Group

The Hepburn claim group lies 15km to the northwest of the former Normetal Cu-Zn mine which produced 10 million tonnes grading 2.2% Cu, 5.4% Zn, 0.53 g/t Au and 44.5 g/t Ag between 1938 and 1975. The claim boundary is also located 12km northwest of the Perron gold project recently discovered by Amex Exploration. On June 16, 2022, Amex announced high-grade diamond drilling results of 15.52 g/t Au over 15.85m and 11.27 g/t Au over 11m. (Figure 3)

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Figure 3
. Regional location of the Hepburn claim group along strike of AMEX Exploration gold discovery and former Normetal Cu-Zn mine.

To view an enhanced version of Figure 3, please visit:
https://images.newsfilecorp.com/files/4407/133013_3066039a74a01828_005full.jpg

Seal River Exploration Ltd. drilled one hole in 1990 and intersected bands of cherty garnetiferous, sulphide-magnetite iron formation over widths of 2-4 m in amphibolitic mafic volcanics. From 117.65 m a 1 m section assayed 396 ppb Au. From 147.58 m, a 0.91 m section assayed 240 ppb Au (AFRI 32E04SE0026). Seal River returned and drilled 3 more holes PR91-1 through PR91-3 totaling 306.93 m. Holes PR91-1 and PR91-3 were drilled on the current Hepburn claim group. Hole PR91-1 failed to intersect any significant assays. Hole PR91-3 was drilled on the same horizontal loop electromagnetic (HLEM) anomaly 300m to the east of hole PR90-1 and intersected similar bands of cherty garnetiferous, sulphide-magnetite iron formation over widths of 0.5-2.13 m in amphibolitic mafic volcanics. Highlights from this hole include 306 ppb Au over 0.91 m (AFRI 32E04SE9301).

Transaction Summary

The Option Agreement enables Centurion to acquire a 100% interest in the Casa Berardi West Project for cash consideration totaling $114,000 and the issuance of 600,000 common shares over a 3-year period. The Optionors will retain a 2% NSR but Centurion has the right to acquire 50% of the NSR for $1,000,000. The transaction is subject to TSX Venture Exchange approval.

Qualified Person

Mike Kilbourne, P. Geo, an independent qualified person as defined in National Instrument 43-101, has reviewed, and approved the technical contents of this news release on behalf of the Company.

References

  1. Technical Report for the Casa Berardi Mine, Northwestern Quebec, Canada authored by Jonathan Archambault-Giroux, P.Geo, Effective date December 31, 2018.

  2. Independent Technical Report, Mikwam Gold Property, Noseworthy Township, Ontario, Canada by Caracle Creek International Consulting Inc., Effective date December 8, 2016.

  3. See press release TSXV:AMX dated June 16, 2022.

  4. https://www.yorbeauresources.com/en/projects/normetal-west/#:~:text=The%20Normetal%20Mine%2C%20located%20relatively,a%20depth%20of%202.4%20kilometres.

ABOUT CENTURION

Centurion Minerals Ltd. is a Canadian-based company with a focus on mineral asset development in the Americas. The Company's lead investment is its interest in the Ana Sofia Agri-Gypsum Fertilizer Project, and it is also reviewing additional prospective, precious mineral exploration projects.

"David G. Tafel"
President and CEO

For Further Information Contact:
David Tafel
604-484-2161

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Information

All statements, trend analysis and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding, the completion of the Arrangement, the Meeting, the Final Order hearing of the Court, the anticipated benefits of the Arrangement, the Company's plan to develop its business and provide Shareholders with additional investment choices and enhanced value, the Company's plans to complete the Consolidation and the Company's plans to apply to the TSX-V for a resumption of trading as a mineral exploration issuer following the Meeting; and future capital expenditures, anticipated content, commencement, and cost of exploration programs in respect of the Company's projects and mineral properties, anticipated exploration program results from exploration activities, resources and/or reserves on the Company's projects and mineral properties, and the anticipated business plans and timing of future activities of the Company; are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in the Company's periodic filings with Canadian securities regulators, and assumptions made with regard to: the Company's ability to complete the proposed Arrangement on the terms and conditions contemplated, or at all; the Companies' ability to secure the necessary shareholder, Court and regulatory approvals required to complete the Arrangement; the estimated costs associated with the Arrangement; the timing of the Meeting, the Final Order hearing and the Arrangement; and that market fundamentals will result in sustained precious and base metals demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future exploration of the Company's properties, that the COVID-19 global pandemic will not affect the ability of the Company to conduct the exploration program on the Project, the availability of financing on suitable terms, and the Company's ability to comply with environmental, health and safety laws. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Important factors that could cause actual results to differ materially from the Company expectations include risks associated with the business of the Company; risks related to the satisfaction or waiver of certain conditions to the closing of the Arrangement; non-completion of the Arrangement; risks related to the Company failing to obtain the requisite shareholder approval required for the Arrangement; risks relating the number of dissenting shareholders requiring fair value for their securities in connection with the Arrangement; risks related to exploration and potential development of the Company's projects including the Company's option to acquire the Project, the proposed expenditures for exploration work thereon, the ability of the Company to obtain sufficient financing to fund its business activities and plans, delays in obtaining governmental and regulatory approvals (including of the TSX Venture Exchange), permits or financing, changes in laws, regulations and policies affecting mining operations, risks relating to epidemics or pandemics such as COVID-19, including the impact of COVID-19 on the Company's business, financial condition and results of operations, currency and commodity fluctuations, title disputes or claims, environmental issues and liabilities, the need for cooperation of government agencies and indigenous groups in the issuance of required permits; the need to obtain additional financing to develop properties, and uncertainty as to the availability and terms of future financing; and other risk factors as detailed from time to time and additional risks identified in the Company filings with Canadian securities regulators on SEDAR in Canada (available at www.sedar.com). Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/133013

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Aurora Cannabis Announces Fiscal 2022 Fourth Quarter and Full Year Results

  • Remains #1 Canadian LP in High Margin Global Medical Cannabis Revenues; International Medical Cannabis Net Revenue Increased 35.4% from Q4 2021 and 70.3% from Fiscal 2021
  • Reiterates Adjusted EBITDA Profitability Run Rate by December 31, 2022
  • Reaffirms $150 to $170 Million in Annualized Cost Savings by December 31, 2022
  • Strengthens Balance Sheet Through Accretive Debt Reduction Totaling $155.3 Million in Q4 2022
  • Completed Profitable Acquisition of Thrive Cannabis and Majority Investment in Bevo Farms

 Aurora Cannabis Inc. (the "Company" or "Aurora" ) (NASDAQ: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, today announced its financial and operational results for the fourth quarter and fiscal year ended June 30, 2022 .

Aurora Cannabis Logo (CNW Group/Aurora Cannabis Inc.)

"We continue to enhance the long-term value of our differentiated global cannabis business by quickly identifying highly profitable growth opportunities, deploying capital in a disciplined manner, and continuing to rationalize our cost structure. We remain the #1 Canadian LP in global medical cannabis revenues and expect this high margin, high growth segment to be a key driver for future profitability. 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. Furthermore, our strengthened balance sheet enabled an early repurchase of $155.3 million in convertible debt during Q4 2022, while providing us with the ability to pursue strategic and accretive acquisitions. These include our purchase of a controlling interest in Bevo Farms, one of the largest suppliers of propagated vegetables and ornamental plants in North America , and Thrive Cannabis, which is widely known for its award-winning recreational brand, Greybeard," stated Miguel Martin , Chief Executive Officer of Aurora.

"During fiscal 2022, our international medical cannabis net revenues increased by over 70%; our leadership in key markets such as Germany , UK, Australia and Poland demonstrates our unique, portable and profitable international medical program. We are beginning to see signs of stabilization in our Canadian adult recreational segment and are excited about the contributions from the Thrive acquisition which continues to advance our premiumization strategy. Finally, our investment in science is beginning to pay dividends; we delivered nine new proprietary cultivars to market during the year, providing rotation and variety to consumers and driving meaningful improvements in yield," he concluded.

Fourth Quarter 2022 Highlights
(Unless otherwise stated, comparisons are made between fiscal Q4 2022, Q3 2022, and Q4 2021 results and are in Canadian dollars)

Medical Cannabis:

  • Medical cannabis net revenue 1 was $36.6 million , a 4% increase from the prior year period, delivering 72.8% of Aurora's Q4 2022 consolidated net revenue 1 and 86.3% of adjusted gross profit before fair value adjustments 1 .
  • The increase in revenue was driven by growth in the international medical business, up 35.4% from the prior year quarter which was attributed primarily to the Company's increasing presence in key emerging international medical cannabis markets. The 7.1% sequential decrease from Q3 was due primarily to lower sales in the EU region, the result of a temporary limited supply of high-demand cultivars, and the weakening of the Euro to the Canadian dollar.
  • Adjusted gross margin before FV adjustments on medical cannabis net revenue 1 was 62% compared to 68% in the prior year period and 64% sequentially. The continued strength of the Company's medical adjusted gross margins 1 reflect the direct-to-patient model in Canada and sustained presence in the high margin international medical business. The decrease from Q4 2021 was attributed primarily to a shift in sales mix from domestic medical to export into certain international markets which yield a slightly lower margin. The decrease from Q3 2022 was due primarily to lower volumes sold in the high-margin EU region in Q4 2022.

Consumer Cannabis:

  • Consumer cannabis net revenue 1 was $12.6 million , as compared to the prior quarter net revenue of $10.3 million . The 22.2% increase was primarily due to the addition of Thrive's consumer cannabis net revenues 1 of $1.4 million for the period from May 6, 2022 to June 30, 2022 and a result of the Company's strengthened product offerings in certain categories.
  • Adjusted gross margin before FV adjustments on consumer cannabis net revenue 1 was 26% for the three months ended June 30, 2022 , compared to 29% in the prior quarter and 31% in the comparable prior year period. The decrease of 3% from Q3 2022 and 5% from Q4 2021 was due primarily to an increase in value segment vape sales.

Selling, General and Administrative ("SG&A"):

  • SG&A, including Research and Development ("R&D"), was $49.3 million in Q4 2022 which includes $6.8 million of restructuring related costs, $2.3 million of prior period regulatory fee accruals, and $1.1 million in non-recurring project and litigation costs. Excluding the restructuring and prior period items, SG&A and R&D continued to be well controlled at $39.1 million versus $39.5 million in the prior quarter and $44.8 million in the prior year period, presented on a comparable basis. SG&A is now at the lowest level in almost four years.

Consolidated:

  • Q4 2022 total cannabis net revenue 1 was $50.2 million , as compared to the prior quarter total cannabis net revenue 1 of $50.4 million . Excluding a $1.0 million provision related to anticipated returns on prior period U.S. CBD extract sales, cannabis net revenue was $51.2 million , an increase of $0.8 million in Q4 2022 as compared to Q3 2022, primarily due to the inclusion of less than two months of the recently acquired Thrive net revenues 1 of $1.4 million . The Q4 2022 average net selling price per gram of dried cannabis 1 , excluding the effect of bulk wholesale sales, decreased 6% to $5.10 from $5.41 in Q3 2022 reflecting the higher proportion of consumer market revenue in Q4 2022 results.
  • Adjusted gross margin before FV adjustments on cannabis net revenue 1 was 52% in Q4 2022 versus 57% in the prior quarter and 54% in Q4 2021. The change from Q3 is related to the gross margin impact from a greater portion of Q4 2022 revenue coming from the consumer business.
  • Adjusted EBITDA 1 loss increased to $12.9 million in Q4 2022 versus $11.4 million in Q3 2022 but narrowed from $21.8 million in the prior year period. The increased adjusted EBITDA 1 loss as compared to the previous quarter is driven mostly by the $3.4 million reduction in adjusted Gross Margin before FV adjustments 1 resulting primarily from a change in the Company's sales channel mix which yielded lower average net selling prices.
Net Loss:

Net loss for Q4 2022 was $618.8 million compared to $134.0 million for the same period in the prior year. The increase in net loss was primarily due to non-cash impairment charges of $505.1 million recorded in other income (expense) during the current quarter to write-down goodwill, intangibles assets and property, plant and equipment.  The impairment charges were triggered by changes in cannabis market conditions, and in the current capital market environment including higher rates of borrowing and lower foreign exchange rates.

Operational Efficiency Plan, Balance Sheet Strength, & Cash Use:

Aurora has previously identified annualized cash savings of up to $170 million in cash savings under this transformation program by the end December 2022 , split approximately evenly between costs of goods sold ("COGS") and SG&A. Projected COGS savings include the repurposing of the Aurora Sky facility in Edmonton , in keeping with our diversified business portfolio, a prudent approach to capital allocation, and focusing on higher margin categories in the Canadian adult-use market. These cash savings will be reflected in our P&L either as they occur within SG&A savings, or as inventory is drawn down for production-related savings.

At June 30, 2022 , the Company had $488.8 million of cash, including $51.0 million in restricted cash, and no secured term debt.

During Q4 2022, the Company completed an offering of 70,408,750 units of the Company (" June 2022 Offering") for gross proceeds of approximately US$172.5 million . Each unit consists of one common share and one common share purchase warrant (" June 2022 Offering Warrant") of the Company. Each June 2022 Offering Warrant entitles the holder to purchase one common share of the Company at a price of US$2.45 per warrant share until June 1, 2025 . The Company issued an additional 488,639 Common Shares of the Company during Q4 2022 for gross proceeds of US$1.5 million under the ATM Program.

As of June 30, 2022 , the Company has access to US$713.7 million under the 2021 Shelf Prospectus, including the balance of US$186.2 million pursuant to the ATM Program. At management's discretion, Aurora may sell shares under the ATM Program from time to time to be utilized for strategic purposes.

Fiscal 2023 will comprise of three quarters, with the new fiscal year end being March 31, 2023 .

The Company continues to materially improve cash use, as outlined in the following table:

($ thousands)

Q4 2022

Q3 2022

Q4 2021









Cash, Opening (1)

$480,552

$383,753

$520,238









Cash used in operations, including working capital

-$22,491

-$39,303

-$7,840

Capital expenditures and investments, net of disposals and
government grant income

-$7,168

$9,879

$6,230

Acquisition of business, net of cash acquired

-$24,467

-

-

Debt and interest payments

-$147,580

-$12,947

-$90,141

Cash use

-$201,706

-$42,371

-$91,751









Proceeds raised from sale of marketable securities and
investments in associates

-

-

$11,929

Proceeds raised through debt

-

-

-

Proceeds raised through equity financing

$209,933

$139,170

$435

Cash raised

$209,933

$139,170

$12,364





Cash, Ending (1)

$488,779

$480,552

$440,851



(1)

Includes restricted cash of $50M at Q4 2022, $50.7M at Q3 2022, and $19.4M at Q4 2021.

Key Quarterly Financial and Operating Results

($ thousands, except Operational Results)

Q4 2022

Q4 2021

$ Change

% Change

Q3 2022

$ Change

% Change

Financial Results








Total net revenue (1)(2)

$50,215

$54,825

($4,610)

(8 %)

$50,434

($219)

0 %

Medical cannabis net revenue (1)(2)

$36,570

$35,022

$1,548

4 %

$39,359

($2,789)

(7 %)

Consumer cannabis net revenue (1)(2)

$12,638

$19,514

($6,876)

(35 %)

$10,339

$2,299

22 %

Adjusted gross margin before FV adjustments on
cannabis net revenue (2)

47 %

54 %

N/A

(7 %)

54 %

N/A

(7 %)

Adjusted gross margin before FV adjustments on
core cannabis net revenue (2)

52 %

54 %

N/A

(2 %)

57 %

N/A

(5 %)

Adjusted gross margin before FV adjustments on
medical cannabis net revenue (2)

62 %

68 %

N/A

(6 %)

64 %

N/A

(2 %)

Adjusted gross margin before FV adjustments on
consumer cannabis net revenue (2)

26 %

31 %

N/A

(5 %)

29 %

N/A

(3 %)

SG&A expense (5)

$46,890

$46,902

($12)

0 %

$39,630

$7,260

18 %

R&D expense

$2,456

$3,034

($578)

(19 %)

$2,637

($181)

(7 %)

Adjusted EBITDA (2)(6)

($12,852)

($21,821)

$8,969

41 %

($11,367)

($1,485)

(13 %)









Balance Sheet








Working capital

$599,893

$549,517

$50,376

9 %

$577,566

$22,327

4 %

Cannabis inventory and biological assets (3)

$127,836

$120,297

$7,539

6 %

$118,729

$9,107

8 %

Total assets

$1,084,356

$2,604,731

($1,520,375)

(58 %)

$1,570,252

($485,896)

(31) %









Operational Results – Cannabis








Average net selling price of dried cannabis
excluding bulk sales (2)

$5.10

$5.11

($0.01)

0 %

$5.41

($0.31)

(6) %

Kilograms sold (4)

13,130

11,346

1,784

16 %

9,722

3,408

35 %



(1)

Includes the impact of actual and expected product returns and price adjustments (Q4 2022 - $1.8 million; Q3 2022 - $0.4 million; Q4 2021 - $0.7 million).

(2)

This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. See " Non-GAAP Measures " below for reconciliations of non-GAAP financial measures to GAAP financial measures.

(3)

Represents total biological assets and cannabis inventory, exclusive of merchandise, accessories, supplies and consumables.

(4)

The kilograms sold is offset by the grams returned during the period.

(5)

Includes $6.8 million of restructuring related costs (Q3 2022 - $2.0 million, Q4 2021 - $5.2 million), $2.3 million of prior period employee-related accruals (Q3 2022 - $0.7 million, Q4 2021 - nil) and $1.1 in non-recurring project and litigation costs (Q3 2022 — million, Q4 2021 - nil).

(6)

Prior period comparatives were recast to include the adjustment for non-core, non-recurring adjusted wholesale bulk cannabis margins to be comparable to the current quarter as follows: Q3 2022 - $0.9 million; and Q4 2021 - $1.4 million.

Conference Call

Aurora will host a conference call today, Tuesday, September 20, 2022 , to discuss these results. Miguel Martin, Chief Executive Officer, and Glen Ibbott , Chief Financial Officer, will host the call starting at 5:00 p.m. Eastern time | 3:00 p.m. Mountain Time . A question and answer session will follow management's presentation.

Conference Call Details

DATE:

Tuesday, September 20, 2022

TIME:

5:00 p.m. Eastern Time | 3:00 p.m. Mountain Time

WEBCAST:

Click here

This weblink has also been posted to the Company's "Investor Info" link at https://investor.auroramj.com/ under "News & Events".

About Aurora

Aurora is a global leader in the cannabis industry, serving both the medical and consumer markets. Headquartered in Edmonton, Alberta , Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company's adult-use brand portfolio includes Aurora Drift , San Rafael '71 , Daily Special , Whistler , Being and Greybeard , as well as CBD brands, Reliva and KG7 . Medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co. Aurora also has a controlling interest in Bevo Farms , North America's leading supplier of propagated agricultural plants. Driven by science and innovation, and with a focus on high-quality cannabis products, Aurora's brands continue to break through as industry leaders in the medical, performance, wellness and adult recreational markets wherever they are launched. Learn more at www.auroramj.com and follow us on Twitter and LinkedIn .

Aurora's common shares trade on the NASDAQ and TSX under the symbol "ACB".

Forward Looking Statements

This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements made in this news release include, but are not limited to, statements with respect to:

  • pro forma measures including revenue, cash flow, Adjusted gross margin before fair value adjustments, and expected SG&A run-rates;
  • the Company's ability to execute on its business transformation plan, and path and timing to achieve Adjusted EBITDA profitability run rate;
  • anticipated cost savings and planned cost efficiencies including, but not limited to, the repurposing of the Aurora Sky facility;
  • the acquisition of Thrive and associated benefits, including advancement of the Company's premiumization strategy;
  • the majority investment in Bevo Farms and associated benefits;
  • future growth opportunities;
  • the Company's leadership in the global medical cannabis market, and that segment's impact on future profitability;
  • the use of proceeds from the ATM facility
  • the future repurchase of convertible notes; and the introduction of new products to the market.

These forward-looking statements are only predictions. Forward looking information or statements contained in this news release have been developed based on assumptions management considers to be reasonable. Material factors or assumptions involved in developing forward-looking statements include, without limitation, publicly available information from governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which the Company believes to be reasonable. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of our products, customer experience and retention, the development of third party government and non-government consumer sales channels, management's estimates of consumer demand in Canada and in jurisdictions where the Company exports, expectations of future results and expenses, the risk of successful integration of acquired business and operations, management's estimation that SG&A will grow only in proportion of revenue growth, the ability to expand and maintain distribution capabilities, the impact of competition, the general impact of financial market conditions, the yield from cannabis growing operations, product demand, changes in prices of required commodities, competition, and the possibility for changes in laws, rules, and regulations in the industry, epidemics, pandemics or other public health crises, including the current outbreak of COVID-19, and other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual information form dated September 20, 2022 (the "AIF") and filed with Canadian securities regulators available on the Company's issuer profile on SEDAR at www.sedar.com and filed with and available on the SEC's website at www.sec.gov . The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.

Non-GAAP Measures

This news release contains reference to certain financial performance measures that are not recognized or defined under IFRS (termed " Non-GAAP Measures "). As a result, this data may not be comparable to data presented by other licensed producers of cannabis and cannabis companies. Non-GAAP Measures in this news release include "adjusted EBITDA", "net revenue", "adjusted gross profit before FV adjustments" and "adjusted gross margin before FV adjustments".

For an explanation of each measure to related comparable financial information presented in the consolidated financial statements prepared in accordance with IFRS, refer to the section of the Company's management's discussion and analysis for the years ended June 30, 2022 and 2021 (the " MD&A ") entitled " Cautionary Statement Regarding Certain Non-GAAP Performance Measures ", which is incorporated by reference into this news release. A copy of the MD&A is available under the Company's profile on SEDAR at www.sedar.com .

Non-GAAP Measures should be considered together with other data prepared in accordance with IFRS to enable investors to evaluate the Company's operating results, underlying performance and prospects in a manner similar to Aurora's management. Accordingly, the Non-GAAP Measures included in this news release are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Net Revenue, Adjusted Gross Profit and Margin

Net revenue, adjusted gross profit before FV adjustments and adjusted gross margin before FV adjustments are Non-GAAP Measures and can be reconciled with gross profit and gross margin, the most directly comparable GAAP financial measures, respectively, as follows:

$ thousands)

Medical
Cannabis

Consumer
Cannabis

Total Core
Cannabis

Non-Core
Wholesale
Bulk Cannabis

Total

Three months ended June 30, 2022






Gross revenue

39,553

16,994

56,547

1,007

57,554

Excise taxes

(2,983)

(4,356)

(7,339)

0

(7,339)

Net revenue

36,570

12,638

49,208

1,007

50,215

Non-recurring revenue adjustments (1)


1,023

1,023


1,023

Adjusted net revenue

36,570

13,661

50,231

1,007

51,238

Cost of sales

(23,237)

(17,700)

(40,937)

(6,323)

(47,260)

Gross profit (loss) before FV adjustments

13,333

(4,039)

9,294

(5,316)

3,978

Depreciation

3,489

2,506

5,995

816

6,811

Inventory impairment, non-recurring, and out-of-period
adjustments in cost of sales (1)

5,747

5,118

10,865

2,230

13,095

Adjusted gross profit (loss) before FV adjustments

22,569

3,585

26,154

(2,270)

23,884

Adjusted gross margin before FV adjustments

62 %

26 %

52 %

(228 %)

47 %







Three months ended March 31, 2022






Gross revenue

42,262

13,869

56,131

736

56,867

Excise taxes

(2,903)

(3,530)

(6,433)

0

(6,433)

Net revenue

39,359

10,339

49,698

736

50,434

Cost of sales

(31,275)

(23,242)

(54,517)

(5,920)

(60,437)

Gross profit (loss) before FV adjustments

8,084

(12,903)

(4,819)

(5,184)

(10,003)

Depreciation

4,198

2,165

6,363

482

6,845

Inventory impairment, non-recurring, and out-of-period
adjustments in cost of sales (1)

12,873

13,749

26,622

3,806

30,428

Adjusted gross profit (loss) before FV adjustments

25,155

3,011

28,166

(896)

27,270

Adjusted gross margin before FV adjustments

64 %

29 %

57 %

(122 %)

54 %







Three months ended June 30, 2021






Gross revenue

38,076

26,037

64,113

289

64,402

Excise taxes

(3,054)

(6,523)

(9,577)

0

(9,577)

Net revenue

35,022

19,514

54,536

289

54,825

Out-of-period revenue adjustments (1)

908

908

908

Adjusted net revenue

35,022

20,422

55,444

289

55,733

Cost of sales

(17,558)

(19,726)

(37,284)

(331)

(37,615)

Gross profit before FV adjustments

17,464

696

18,160

(42)

18,118

Depreciation

5,245

3,587

8,832

40

8,872

Inventory impairment, non-recurring, and out-of-period
adjustments in cost of sales (1)

1,028

2,017

3,045

3,045

Adjusted gross profit before FV adjustments

23,737

6,300

30,037

(2)

30,035

Adjusted gross margin before FV adjustments

68 %

31 %

54 %

(1 %)

54 %



(1)

Included in non-recurring and out-of-period adjustments are: Q4 2022 - $1.0 million and $(0.4) million related to expected returns on prior period revenues recorded in net revenues and cost of sales, respectively, $2.7 million related to a catch-up of prior period inventory adjustments, and $(0.5) million related to correction of prior quarter biological assets fair value inputs; Q3 2022 - $3.4 million related to correction of prior quarter biological assets fair value inputs; Q4 2021 - $0.9 million out-of-period revenue adjustment to reclassify prior period rebates against net revenue, and $5.5 million cost of sales adjustment related to a catch-up of prior year raw material count reconciliations.

Adjusted EBITDA

Adjusted EBITDA is a Non-GAAP Measure and can be reconciled with net income, the most directly comparable GAAP financial measure, as follows:

($ thousands)

Three months ended

Year ended

June 30, 2022

March 31,
2022 (5)

June 30, 2021
(5)

June 30, 2022

June 30, 2021
(5)

Net income (loss) from continuing operations

(618,777)

(1,012,175)

(133,969)

(1,717,979)

(693,477)

Non-operating expense (income) (1)

18,151

16,292

(8,508)

22,038

31,684

Income tax expense (recovery)

(1,363)

(202)

(9,970)

(2,141)

(6,321)

Depreciation and amortization

18,595

18,647

22,956

83,067

87,276

Inventory and biological assets fair value adjustments

(1,435)

4,186

4,565

(12,599)

9,529

Share-based compensation

3,472

3,538

2,162

13,757

20,243

Acquisition costs

3,720

585

4,657

4,689

5,761

Restructuring related charges (2)

7,788

2,406

14,550

3,011

Out-of-period adjustments (3)

1,833

4,074

66

5,873

1,325

Non-recurring items (4)(5)

7,667

896

(2,565)

8,786

(3,887)

Asset impairments

547,497

950,386

98,785

1,528,913

426,844

Adjusted EBITDA

(12,852)

(11,367)

(21,821)

(51,046)

(118,012)



(1)

Non-operating expense (income) includes: interest and other income; finance and other costs; foreign exchange gain (loss); share of loss from investment in associates; government grant income; and fair value changes on derivative investments, derivative liabilities, contingent consideration, loss on extinguishment of derivative investment, Gain (loss) on disposal of assets held for sale and property, plant and equipment, provisions, Realized loss on repurchase of convertible debt, Other gain (loss), and (gain) loss on the modification of debt. Refer to Note 21 of the Financial Statements.

(2)

Restructuring related charges includes costs related to closed facilities that are held for sale, legal contract termination fees, restructuring charges and severance associated with the business transformation plan and revenue provisions as a result of Company initiated product swap to replace low quality product with higher potency product at the provinces.

(3)

Included in out-of-period adjustments in Q4 2022 are $2.3 million related to Health Canada regulatory fee catch-up accruals, and $(0.5) million related to out of period impact of changes to Q1-Q3 inputs into the biological assets fair value model; Q3 2022 - $3.4 million related to a correction of prior quarter biological assets fair value measurement and $0.7 million in prior period related professional services expenses; Q4 2021 are $5.5 million cost of sales adjustment related to a catch-up of prior year raw material count reconciliations, (ii) a $0.9 million out-of-period 2021 revenue adjustment to reclassify prior period rebates against net revenue; offset by (iii) a $6.4 million other gain relating to prior periods identified through our period end reconciliations.

(4)

Included in non-recurring items in Q4 2022 are $2.3 million in non-core, non-recurring adjusted wholesale bulk cannabis margins; $0.3 million in litigation costs and $3.5 million in certain projects related to the Company's corporate reset and other costs that are non-recurring in nature. Included in YTD Q4 2022 are $3.4 million in non-core, non-recurring adjusted wholesale bulk cannabis margins (YTD Q4 2021 - $1.4 million), $0.3 million in litigation costs and $0.8 million in certain projects related to the Company's corporate reset and other costs that are non-recurring in nature.

(5)

Prior period comparatives were recast to include the adjustment for non-core, non-recurring adjusted wholesale bulk cannabis margins to be comparable to the current quarter as follows: Q3 2022 - $0.9 million; Q4 2021 - $1.4 million; and YTD Q4 2021 - $1.4 million.

___________________________

1 This news release includes certain Non-GAAP Measures (as defined below), which are intended to supplement, not substitute for, comparable GAAP financial measures. See " Non-GAAP Measures " below for reconciliations of each Non-GAAP Measure to its most directly comparable GAAP financial measure. Non-GAAP Measures in this news release include "adjusted EBITDA", "net revenue", "adjusted gross margin before FV adjustments" and "adjusted gross profit before FV adjustments".

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/aurora-cannabis-announces-fiscal-2022-fourth-quarter-and-full-year-results-301628904.html

SOURCE Aurora Cannabis Inc.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/September2022/20/c5866.html

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