Shares of a Canadian cannabis producer took a double-digit downturn this past week as the company proposed a new public offering.

Meanwhile, two leading US-based multi-state operators (MSOs) gave new expansion strategy details.


Keep reading to find out more cannabis highlights from the past five days.

 

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Aurora’s gamble causes share price dip

This past week has been a turbulent one for Aurora Cannabis (NYSE:ACB,TSX:ACB) shareholders.

On Monday (November 9), the producer reported an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss of C$57.9 million for its first fiscal quarter of 2021. Aurora also indicated its cannabis net revenue reached C$67.8 million.

According to Aurora CEO Miguel Martin, the firm’s CBD brand Reliva is ranked as the top choice by data set company Nielsen Holdings (NYSE:NLSN). Aurora entered the US market by acquiring Reliva in May.

The company kicked off the week at US$13.15 in New York, but has since dropped in value by over 40 percent. As of Friday (November 13) at 10:43 a.m. EST, Aurora was down to a price tag of US$7.17.

The volatile period was aggravated after Aurora introduced a new public offering for gross proceeds of US$125 million. The offer prices shares of the company at US$7.50 apiece.

A report from Barron’s released mid-week shows that analysts were left unimpressed by Aurora’s recent performance, along with its new offering.

“We do not believe the company has demonstrated an enduring right-to-win for new market opportunities, particularly in the US, with the increasing competitiveness of the Canadian market challenging the company’s ability to achieve profitability while contending with liquidity issues,” Stifel analyst W. Andrew Carter wrote in a note, according to the report.

ACB stock chart

MSO expansion into new markets

Also during this past trading week, Curaleaf Holdings (CSE:CURA,OTCQX:CURLF) and Trulieve Cannabis (CSE:TRUL,OTCQX:TCNNF) outlined their respective expansion plans. Both MSOs are making critical moves into the Pennsylvania state market.

Kim Rivers, CEO of Trulieve, said Pennsylvania is “one of the most attractive medical marijuana markets in the United States.” Her company is acquiring local producer PurePenn and the Solevo Wellness dispensary network in a combined share-and-cash deal worth US$66 million.

Meanwhile, Curaleaf said its Select line of cartridge products has become available in the state market.

Pennsylvania is a medical-only market with 425,000 patients registered, according to a FOX29 report.

 

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Cannabis company news

Earnings report season kicked off with a variety of cannabis companies reporting numbers. Here are several that shared data this past week.

  • Avicanna (TSX:AVCN,OTCQX:AVCNF) reported a net loss attributable to shareholders of C$0.35 per share for its most recent quarter; it also saw an adjusted EBITDA loss of C$2.6 million. Following the report, the company announced a new public offering.
  • Canopy Growth (NYSE:CGC,TSX:WEED) recorded C$135.5 million in net revenue, fueled by sales in the Canadian recreational cannabis market. However, the firm is still identifying cost-saving measures in the range of C$150 million to C$200 million.
  • Canopy Rivers (TSX:RIV,OTC Pink:CNPOF) told investors the value of its investment in TerrAscend (CSE:TER,OTCQX:TRSSF) has jumped thanks to the US election. “We believe that we will be well positioned to capitalize on opportunities in the US once we are permitted to do so,” President and CEO Narbe Alexandrian said.
  • The Green Organic Dutchman Holdings (TSX:TGOD,OTCQX:TGODF) reported a net loss of C$76.24 million and also confirmed the dismissal of CEO Brian Athaide.
  • Harvest Health & Recreation (CSE:HARV,OTCQX:HRVSF) upsized its 2020 target revenue after reporting an 86 percent increase in total revenue for the most recent quarter.
  • Sundial Growers (NASDAQ:SNDL) indicated that its net cannabis revenue dropped to C$12.9 million during the latest quarter. While CEO Zach George didn’t shy away from discussing the firm’s struggles, he is confident the company has made strides to correct its direction.
  • Village Farms International (NASDAQ:VFF,TSX:VFF) saw its net sales rise to C$22.6 million for the Q3 period as its cannabis division reported another positive performance.
  • Zenabis Global (TSX:ZENA) reported a net loss of C$17 million for the third quarter, which CFO Eric Rasmussen said has been attributed to “significant one-time charges related to financial transactions.”

Next week, research firm Prohibition Partners will reprise its online event “Prohibition Partners LIVE,” offering cannabis investors a place to listen to expert discussions about the state of the industry and key trends in areas like Canada, the US, Europe and Oceania.

The event kicks off on Tuesday (November 17) and will feature investment speakers like Merida Capital partner Mitch Baruchowitz and Karan Wadhera, managing director of Casa Verde Capital.

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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Ayurcann (CSE:AYUR) entered into a joint venture with Bazelet Group, Israel’s largest privately held medical cannabis company. Ayurcann CEO Igal Sudman shared the company’s excitement about bringing unique terpene-enriched medicinal cannabis to the Canadian marketplace. 

“Canada is a very closed-loop country, and the opportunity to bring a variety of different enhancement and technologically advanced products is very important to us. The relationship that we formed with Bazelet is going to enhance our offerings into the Canadian marketplace,” Sudman said. 

Bazelet has launched multiple lines of terpene-enriched cannabis oils; each one is specifically designed for various indications, symptoms and personal needs. The company’s terpene-enriched products are optimized for women’s health, for elderly population needs, for specific types of pains (muscle, joint, neuropathic) and for improved night sleep. 

According to Sudman, there are a lot of larger companies that have tried to do this, but none have been able to successfully bring innovation into the market. Ayurcann is rapidly forging partnerships with several companies worldwide, including Cannmart, Patient Choice and Kindred Partners.

“We’re growing the business, customer base, relationships and partnerships worldwide. We’re bringing the latest technology into Canada, and enhancing not only our company, but the investors’ value moving forward,” added Sudman. 

Watch the full interview with Ayurcann CEO Igal Sudman above.

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Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today the opening of a new Florida dispensary, the Company’s 91st nationwide.

The latest dispensary, located in Winter Park , supports Trulieve’s goal of ensuring medical cannabis patients across Florida have safe, reliable access to the medications they rely on. The dispensary expands access throughout Central Florida , joining four locations throughout nearby Orlando .

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Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) (“Nextleaf”, “OILS”, or the “Company”), the world’s most innovative cannabis extractor, is pleased to announce that the United States Patent and Trademark Office has granted the Company a patent pertaining to the extraction and purification of THC and CBD.

The Company believes it has developed defendable intellectual property around the most efficient methods for producing THC and CBD distillate at scale within a regulated market. Nextleaf owns 15 U.S. patents and has been issued over 80 patents globally.

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Cannabis Company Executives share vision, answer questions live at VirtualInvestorConferences.com

Virtual Investor Conferences in partnership with KCSA Strategic Communications and ATB Capital Markets today announced the agenda for the upcoming Cannabis Industry Virtual lnvestor Conference. Individual investors, institutional investors, advisors and analysts are invited to attend. The two-day program begins at 9:30 AM ET on Tuesday June 29 th .

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Acquisition solidifies Canopy Growth’s leadership position in the Canadian recreational market

Canopy Growth Corporation (“Canopy”) (TSX: WEED) (NASDAQ: CGC) and The Supreme Cannabis Company, Inc. (“Supreme”) (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) are pleased to announce the completion of the previously announced arrangement (the “Arrangement”) whereby Canopy has acquired all of the issued and outstanding common shares of Supreme (the “Supreme Shares”).

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