Aurora Cannabis reported another significant quarterly and annual loss, but the Alberta-based marijuana producer said it’s on track to report a profit next year on the back of strong growth in the European medical market.
Virtually all industries follow a predictable evolutionary path, from introduction to growth to maturity to decline.
As the cannabis industry evolves from growth to maturity, it’s no surprise the market is experiencing one of the most common developments – consolidation.
Edmonton, Alberta-based Aurora Cannabis has been deleted from the S&P/TSX Composite Index, according to the latest quarterly review announced by S&P Dow Jones Indices.
The most profitable cannabis businesses in Canada are owned by various levels of government, according to MJBizDaily research.
While business around the world shuttered as COVID-19 spread, the marijuana industry was deemed “essential” in nearly 30 states and stood to gain from the pandemic.
But more than two years later, amid rising inflation and fears of a recession, North American cannabis companies are cutting hundreds of jobs, closing retail outlets and cultivation facilities or shuttering altogether.
The Canadian government still has no publicly projected launch date for its mandatory review of the country’s 2018 recreational cannabis legalization law, more than eight months after the reappraisal was due to begin.
Aurora Cannabis is cutting 12% of its global workforce as part of a corporate restructuring, the Edmonton, Alberta-based company confirmed in an email to MJBizDaily.
Aurora Cannabis has bought back roughly $20 million worth of convertible senior notes to reduce debt and “annual cash interest costs.”
Aurora Cannabis has arranged new financing via a “bought deal.”
What is that, and is it important to all cannabis entrepreneurs or just the large operators?
Let’s take the deal apart to find out.
Canadian marijuana producer Aurora Cannabis said it received gross proceeds of $172.5 million from a bought deal offering after the underwriters’ over-allotment option was fully exercised.
Aurora Cannabis entered a bought deal financing worth $125 million, then upsized that funding to $150 million.
Struggling cannabis producer Aurora Cannabis reported a net loss of 1 billion Canadian dollars ($770 million) for the three months ended March 31 on plunging sales of adult-use products, bringing its loss this year to CA$1.1 billion.
