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Home / Business / Aurora share plunges 11% when cannabis manufacturer scales expansion amid falling sales

Aurora share plunges 11% when cannabis manufacturer scales expansion amid falling sales



Aurora Cannabis Inc. reported a 24% sequential decline in revenue on Thursday, reporting revenue of $ 75.3 million ($ 56.8 million) versus $ 98.9 in the previous quarter as the company slowed its expansion plans in Canada and abroad.

United States Shares in Aurora

ACB, -7.32%

ACB, -6.61%

fell more than 1

1.6% in the extended session.

The company reported fiscal net income attributable to Aurora of $ 12.8 million, or one penny a share, compared to $ 105.5 million, or $ 12 a share, in the year-ago period.

Aurora said it sold $ 30.5 million medical weed; Recreational sales went down 33% to $ 30 million, which Aurora said was due to slower provincial ordering. Aurora sold a $ 10.3 million wholesale spot. In total, the company sold 12.5 tonnes of cannabis and produced 41.4 tonnes during the third quarter.

Aurora said it planned to immediately stop construction at one of its weed-growing plants in Denmark, which it said would save around $ 80 million over the next 12 months. The company also said it would delay the completion of the final construction and activation of the Aurora Sun facility in Canada.

Aurora reported earnings in the midst of a brutal stretch for some of the world's largest cannabis companies. Before the opening clock, Canopy Growth Corp.

CGC, -14.38%

WEED, -14.27%

reported a fiscal second quarter tax loss of $ 374.6 million ($ 282.4 million), or $ 1.08 on an income of C $ 76.6 million. Earlier this week, investors saw results from Tilray Inc.

TLRY, -5.35%

beating Wall Street revenue estimate, and Cronos Group Inc.

CRON, -6.06%

,

CRON, -6.04%

who missed out on revenue expectations.

In its earnings release, Aurora said it had secured a commitment from investors who had $ 155 million in bonds in March 2020 to voluntarily convert their debt securities. Remaining debt holders will have the option of converting bonds at a discount.

“To capitalize on this global market, we recognize the need to be quick and proactive. To strengthen our financial flexibility and position ourselves to make the most of future growth opportunities, we have also taken crucial steps to immediately strengthen the balance sheet, Aurora CEO Terry Booth said in a statement.

After many years of pronouncing the San Rafael & # 39; brand, leaders in the conference call stated what the locals say in the California city the brand was named after: "San Rah Falls."

Across of Thursday's extended session move, Aurora shares had dropped 34% this year as ETFMG Alternative Harvest ETF

MJ, -4.55%

falls 31%.


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