Aurora Cannabis is ceasing construction at its large second-phase facility in Denmark and deferring most of the final construction at its Aurora Sun facility in Medicine Hat, Alberta, as the company’s losses widened substantially in the quarter.
The moves would save Aurora a combined 190 million Canadian dollars ($143 million) in the coming year.
Aurora said the facilities are now fully enclosed and construction could be reactivated as global demand rises.
Overall, the company reported lower-than-expected quarterly net revenue of CA$75.2 million, missing consensus forecasts by about CA$10 million.
The company said its bottom line was adversely impacted by slower provincial orders as distributors looked to move inventory as well as the slow pace of retail store licensing that is taking a toll on cannabis businesses across Canada.
Aurora’s adjusted EBITDA loss widened to CA$39.7 million for the period ending Sept. 30, which is substantially worse than the consensus expectations of a CA$17.6 million loss.
The company’s Canadian consumer cannabis revenue of CA$30 million represents a steep 33% decline quarter-over-quarter.
International sales of dried medical cannabis were flat at CA$4.5 million.
In Denmark, the first phase of Aurora’s facility – representing about 100,000 square feet – is completed, and the company expects to receive a license to sell medical cannabis in the near future.
In Canada, active registered medical patients rose to 91,116, up 8% from the period that ended in June.
Medical cannabis revenue reached CA$30.5 million, up 3% sequentially.
Aurora’s shares trade as ACB on the New York Stock Exchange and the Toronto Stock Exchange.
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