Prairie Post (East Edition)

No nEws on Au­rorA Sun plAnt As Com­pAny GIvEs fi­nAn­CIAl rE­port FEB. 11

- By Collin Gal­lant Al­berta News­pa­per Group Business · Medicine Hat · United States of America · Aurora Cannabis · Aurora · Edmonton, KY · Aurora

Au­rora Cannabis of­fi­cials say the com­pany is ex­e­cut­ing on its path to re­po­si­tion­ing as a prof­itable “pre­mium” pro­ducer, as they re­leased a fi­nan­cial re­port Feb. 11 that gave no new in­for­ma­tion on the fu­ture of the paused Sun fa­cil­ity in Medicine Hat.

CEO Miguel Martin says the Ed­mon­ton-based com­pany nar­rowed its un­ad­justed loss to $12 mil­lion in the last quar­ter, while some sales seg­ments strength­ened and op­er­at­ing costs were re­duced.

The net loss in­clud­ing one-time costs was $292 mil­lion, down from a $1.3-bil­lion loss in the same quar­ter last year that in­cluded write-downs and which sparked ma­jor re­struc­tur­ing.

It also re­ported a 28 per cent in­crease in cannabis rev­enue, to $67.7 mil­lion, with strength­en­ing med­i­cal mar­ket sales.

“We’re aw­fully ex­cited about where the com­pany is, and even more ex­cited about where we are go­ing,” said Martin.

Au­rora con­firmed that four smaller pro­duc­tion fa­cil­i­ties slated for clo­sure in the sum­mer were now shut­tered.

At that time it also com­pletely halted con­struc­tion and ef­forts to li­cence the 1.6-mil­lion square-foot, par­tially com­pleted Au­rora Sun fa­cil­ity in Medicine Hat.

As well, the com­pany de­creased pro­duc­tion at the Sky fa­cil­ity in Le­duc by three-quar­ters, and is now fo­cus­ing that three-year-old fa­cil­ity on “pre­mium” brand pro­duc­tion and deriva­tive pro­duc­tion, such as vapes and ed­i­bles.

Share prices for Au­rora, which re­ported re­sults af­ter trad­ing ended Thurs­day, fell from $23.78 to $18.33 over the course of the day. It be­gan the week at $16.55.

The com­pany’s stock rose as much as 50 per cent this week as the sec­tor was buoyed by dis­cus­sions in the United States about re­mov­ing the fed­eral pro­hi­bi­tion on recre­ational, adult-use mar­i­juana.

“Ob­vi­ously we’re watch­ing very close to the shift­ing land­scape … Cana­dian LPs that are com­pli­ance based are ad­van­taged (in a po­ten­tial U.S. sec­tor),” said Martin, say­ing Au­rora plans to par­tic­i­pate in a U.S. na­tional mar­ket through a va­ri­ety of av­enues.

That could be di­rectly or through part­ner­ships, li­cens­ing or merg­ers and ac­qui­si­tion.

“We’re ex­cited and we’ll take ad­van­tage when the time is right.”

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