Aurora Cannabis Inc. today announced its financial and operational results for the quarter ended December 31, 2016 (Q2 2017).
Revenues of $3.9 million, as compared to $0 (nil) for Q2 2016. Q2 2017 revenues reflect 26.5% sequential growth over Q1 2017. Current sales pace exceeds $1.5 million per month. The company continues to execute well on all aspects of its growth strategy through the construction of a state-of-the-art 800,000 square foot production facility, as well as continued investments in technology, innovation, partnerships, customer service, and sales and marketing.
Aurora has approximately 12,800 active registered patients. Developments subsequent to the quarter:
- Current sales pace exceeding $1.5 million per month
- Achieved a seven-day sales record between February 2 and 8, 2017, with more than 68 kilograms sold over that period.
- Received Health Canada license to sell cannabis oils, enabling Aurora to participate in this rapidly growing, higher margin segment of the medical cannabis market.
- Announced a bought deal private placement financing of $60 million with an over-allotment option to increase the offering to up to $75 million.
- Construction of the 800,000 square foot Aurora Sky facility continues to progress well and on schedule, with completion anticipated for the second half of 2017. Contracts have been awarded for the general contractor, and engineering and architectural suppliers. Cut and fill has been completed on the first 500,000 square feet, while screw piles have been sunk for the first 300,000 square feet.
- Raised $5.5 million from the exercise of warrants, options and compensation options.
- Approximately $23 million in additional gross cash proceeds potentially available from the exercise of warrants, stock options and compensation options/warrants.
On January 16, 2017, the company initiated a voluntary recall of products purchased from another licensed producer for resale purposes, which had been found to contain a pesticide not currently registered for use on medical cannabis.
The licensed producer that had sold the recalled cannabis to Aurora has agreed to fully reimburse the Company as follows:
- A cash payment in the amount of $384,835, constituting a full refund for product returned, and
- A credit in the amount of approximately $450,000, fully covering Aurora’s costs incurred via extension of purchase credits by Aurora to its affected clients.
- Signed a Memorandum of Understanding with Radient Technologies Inc. (“Radient”) for the joint development and commercialization of superior and standardized cannabinoid extracts at high throughputs.
- Invested in Radient by way of a $2,000,000 10% convertible debenture. Additionally, announced the intention to participate in Radient’s private placement financing of up to $1,250,000 units at $0.45 per unit.
“The Aurora team continues to exceed its very aggressive strategic goals set out and approved by its board of directors,” said Terry Booth, CEO. “We are serving our rapidly growing base of active registered patients with some of the best cannabis on the market, and we continue to enrich the customer experience with innovations such as our hugely popular mobile app. We are also building a truly exceptional new 800,000 square foot state-of-the-art production facility, which we believe differentiates us and positions us exceptionally well to capitalize on the numerous opportunities created both by the rapidly growing medical cannabis market and the adult consumer market, once legalization is implemented. Additionally, initiatives such as our collaboration with Radient Technologies Inc. to research and implement superior extraction techniques, are indicative of how Aurora continues to be at the forefront of development in the sector. With one of the strongest cash positions in the industry, we are extremely well capitalized to execute on all our strategic growth plans, including the construction of our new Aurora Sky facility.”