Auxly Announces Outdoor Cultivation Expansion Through the Launch of Robinsons Outdoor Grow

Auxly Announces Outdoor Cultivation Expansion Through the Launch of Robinsons Outdoor Grow

Auxly Cannabis Group Inc. (TSX.V – XLY), together with its wholly owned subsidiary Robinsons Cannabis Inc., is thrilled to announce Robinsons Outdoor Grow , a large scale, high quality outdoor cultivation project located in the heart of Nova Scotia’s award-winning wine region of Annapolis Valley.

Robinsons OG is uniquely located in a region that is ideal for outdoor cannabis cultivation given its diverse soil types and microclimates; the same soil on which the Acadians grew hemp over 250 years ago. Located within 25 kilometers of Robinsons’ 27,700 square foot indoor facility, Robinsons OG is comprised of over 158 acres of land in Hortonville, Nova Scotia and offers road frontage and highway access, allowing for the potential future development of tourism and point of sale opportunities.

Under the leadership of cannabis industry veteran Andrew Robinson, Robinsons OG will use a range of proprietary genetics with a track record of success in this climate and apply several outdoor growing techniques commonly used in the fruit crop production and wine industries.

The Robinsons OG project is of significant strategic value to Auxly, as it provides access to high-quality, sun grown cannabis flower for environmentally conscious consumers and a large amount of organic biomass at lower capital and operational costs and a lower carbon footprint relative to conventional indoor or greenhouse cultivation. The long-term, stable supply of outdoor cannabis produced on site at Robinsons OG will help support the product development initiatives at Dosecann Inc., the Company’s wholly owned 52,000 square foot facility located in nearby Charlottetown, Prince Edward Island. A substantial portion of the cannabis produced at Robinsons OG will be used to create premium, terroir-driven Robinsons-branded derivative cannabis products, with the same commitment to quality and craftsmanship as Robinsons’ dried flower.

Robinsons OG expects to submit its application and evidence of readiness to obtain a cultivation licence under the Cannabis Act from Health Canada in Q1 2020.  The Company expects the capital expenditure for the buildout of Robinsons OG to be up to approximately $15 million (of which approximately $6 million has already been funded, with the remainder expected to be contributed through the first half of 2020), with expected yield of approximately 200 kilograms per acre. Robinsons OG expects to plant approximately 20 acres in the 2020 season and responsibly scale operations in the following years.

Hugo Alves, CEO of Auxly, commented: “We are thrilled to announce our Robinsons OG project. As you know, we are very excited to introduce Andrew’s incredible dried cannabis flower to discerning Canadian consumers and Robinsons OG provides us with the perfect platform from which to expand our Robinsons branded product offering. Under Andrew’s supervision, Robinsons OG will give us the ability to grow a broader range of Robinsons’ genetics, using Robinsons’ cultivation methodologies, and take advantage of the unique terroir of the Annapolis Valley to bring Canadian consumers Robinsons branded cannabis products, all produced with an unwavering commitment to quality and craftsmanship.”

Andrew Robinson, President and Founder of Robinsons, commented: “We are excited to have successfully secured over 158 acres of prime, fertile land, with a collection of features highly sought after in the flourishing local wine industry. The Robinsons OG site is located in one of the most picturesque areas in Annapolis Valley, conveniently close to our Kentville facility. It has a unique microclimate inspired by the tidal Gaspereau River, gentle southern sloping hills that provide maximum sun exposure and terroir influence from the Acadian, Wolfville, and Hortonville soils. We are excited to add Robinsons OG to the Robinsons portfolio, and look forward to providing our superior outdoor cannabis to support Dosecann with high-quality cannabinoids and serve the environmentally conscious market seeking outdoor grown cannabis.”

ON BEHALF OF THE BOARD

“Hugo Alves” CEO

About Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF)

Auxly is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, wellness and adult-use markets. Auxly’s experienced team of industry first-movers and enterprising visionaries has secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities and leading product research and development infrastructure in order to create trusted products and brands in an expanding global market.

Learn more at www.auxly.com and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.

Investor Relations:
For investor enquiries please contact our Investor Relations Team:
Email: IR@auxly.com
Phone: 1.833.695.2414

Media Enquiries (only): 
For media enquiries or to set up an interview please contact:
Sarah Bain, VP External Affairs
Email: sarah@auxly.com
Phone: 613.230.5869

Notice Regarding Forward Looking Statements:

This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: the proposed operation of Robinsons OG; the timeline for the funding and licensing of the Robinsons OG project; expectations of future growing capability at the Robinsons OG project and the projected costs associated with the project; the proposed operation of the Dosecann facility; consumer preferences; political change; future legislative and regulatory developments involving cannabis and cannabis products;   and competition and other risks affecting the Company in particular and the cannabis industry generally.

A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this release including, but not limited to, whether: Robinsons OG is able to obtain and maintain all  necessary governmental and regulatory authorizations and permits to conduct business; Robinsons OG is able to successfully cultivate and harvest outdoor cannabis crops in Nova Scotia at the anticipated cost and yield; and general economic, financial market, legislative, regulatory, competitive and political conditions in which the Company operates will remain the same. Additional risk factors are disclosed in the revised annual information form of the Company for the financial year ended December 31, 2017, dated May 24, 2018.

New factors emerge from time to time, and it is not possible for management to predict all of those factors or to assess in advance the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The forward-looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward-looking information speaks only to such assumptions as of the date of this release. In addition, this release may contain forward-looking information attributed to third party industry sources, the accuracy of which has not been verified by the Company. The purpose of forward-looking information is to provide the reader with a description of management’s expectations, and such forward-looking information may not be appropriate for any other purpose. Readers should not place undue reliance on forward-looking information contained in this release.

The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward- looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Published at Fri, 15 Nov 2019 12:42:13 +0000

California Suspends Hundreds of Cannabis Business Licenses, Massachusetts Issues Quarantine on Vapes: Week in Review

California Suspends Hundreds of Cannabis Business Licenses, Massachusetts Issues Quarantine on Vapes: Week in Review

BOULDER, CO, Nov. 14, 2019 /CNW/ – PRESS RELEASE – Charlotte’s Web Holdings, Inc. a hemp CBD extract products company, has announced the appointment of Jacques Tortoroli to its Board of Directors.

Tortoroli, who most recently served as Chief Administration Officer of Bacardi Limited in Bermuda, brings extensive global experience in finance and operations at both private and public companies. As CAO of Bacardi, the largest privately held spirits company in the world, he was a member of the Global Leadership Team and responsible for global finance, operations, information technology and real estate.

Before joining Bacardi in 2014, Tortoroli had spent more than a decade at Viacom, Inc. He held a number of senior finance roles at the multinational entertainment company, most recently serving as both Executive Vice President of Finance for Viacom and as EVP and Chief Financial Officer for Viacom Media Networks, formerly MTV Networks. Prior to that, he held various executive leadership roles at Young & Rubicam, Inc., PepsiCo, Inc., and KPMG.

Tortoroli also recently accepted a position as Executive in Residence and Lecturer at St. Thomas Aquinas College in New York. He has been a member of the college’s Board of Trustees since 2001, serving on the Audit Committee and the Investment & Finance Committee. Tortoroli previously served as a Board Member of the International Baccalaureate, as head of the Audit and Finance Committee and member of the Compensation Committee, Geneva and Cardiff.

“Jacques’ appointment is timely, with the company exploring plans to expand globally as the market leader in CBD products,” said Charlotte’s Web Chairman of the Board and Co-Founder Joel Stanley. “His deep financial knowledge and breadth of international experience in public and private companies will make an important contribution during our next phase of growth.”

Tortoroli stated, “I am honored to serve on the Charlotte’s Web Board of Directors. It’s an exciting time in the growing CBD industry, and Charlotte’s Web has earned its dominant market position through a combination of innovative products and world class executive talent.”

Tortoroli, who will serve on the Compensation and Audit Committees, brings the number of Directors to seven. In addition to Joel Stanley, he joins Jared Stanley, the Company’s Co-Founder and Vice President of Cultivation Operations; Charlotte’s Web CEO Deanie Elsner; John Held, Executive Vice President, General Counsel, and Secretary of Omega Protein Corporation; William West, Co-Founder and President of Tesseract Medical Research; and Shane Hoyne, Managing Director & Chief Marketing Officer of Quintessential Brands Group.

Published at Sat, 16 Nov 2019 11:00:00 +0000

Halo Labs Reports Q3 2019 Financial Results

Halo Labs Reports Q3 2019 Financial Results

Halo Labs Inc. (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) today announced its financial and operational results for the third quarter ended September 30, 2019. For the three months ended September 30, 2019, the Company’s gross profit and gross margin were $2.9 million and 41% respectively, representing record quarterly results since the Company’s inception. For the nine months ended September 30, 2019, revenues were $25.4 million, a 223% increase from the same period last year (nine months to September 30, 2018: $7.9 million). The regulated cannabis market is maturing at an increasingly fast pace and Halo Labs has positioned itself to thrive in the new environment. Halo’s revenue centric strategy has shifted towards quality of revenue, increased profits, and reduced expenses, to maintain strong cash and working capital positions to take advantage of acquisition opportunities should they arise.

Halo’s primary business objectives for the remainder of 2019 and into 2020 will be to:

  1. Continue to build its cash position, with working capital of $19.1 million;
  2. Seek strategic acquisition targets that diversify revenue streams, create additional distribution channels, and add value to the Halo brands and product suite;
  3. Grow quality of revenue and focus on higher margin products like DabTabs™ and concentrates;
  4. Further increase margins in Oregon and California by improving efficiencies and reducing cost of goods sold;
  5. Continue the Company’s international growth trajectory with the anticipated signing and closing of the proposed acquisition of Bophelo Bioscience and the aggressive expansion of operations in Lesotho; and,
  6. Expand into cannabidiol (“CBD”) product lines.

Q3 2019 Financial Highlights

  • Total revenue in the three months ended September 30, 2019 was $7.2 million (three months to September 30, 2018: $3.6 million), a 99% year on year increase, explained by contributions from Halo’s Oregon operations, ANM Inc (“ANM”) and the new operations of HLO Ventures, LLC in Nevada (“HLO”) and Coastal Harvest, LLC in California (“Coastal Harvest”).
  • ANM revenue was $3.4 million in the three months ended September 30, 2019, while HLO generated revenues of $0.4 million and Coastal Harvest $3.4 million.
  • Including a gain in the value of biological assets, cost of goods sold was $4.2 million (three months ended September 30, 2018: $3.1 million), and gross margin for the third quarter was 41% (three months ended September 30, 2018: 15%). ANM achieved a gross margin of 40%, Coastal Harvest achieved a gross margin of 26% and HLO achieved a gross margin of -7% in the nine months ended September 30, 2019.
  • The cash used for operations in the three months ended September 30, 2019 was $3.0 million.
  • As of September 30, 2019, the Company had a cash position of $5.8 million, which including restricted cash of $2.0 million. Total working capital was $19.1 million.

Management Discussions

  • The increase in revenue for the three months ended September 30, 2019 compared to the same period in 2018 was due primarily to an increase of 532,838 grams of distillate sold and an increase of 23,250 grams of shatter sold.
  • The average price increase of shatter also contributed to the increase in revenue for the three months ended September 30, 2019. Excluding the contributions of the new operations, HLO and Coastal Harvest, the increase in grams of distillate and shatter sold in those periods in Oregon were 19% and a 13% respectively.
  • Gross margin has seen an increase to 41%, up from 16% during the second quarter of 2019, throughout all operations as the Company experienced a gain in biological assets as well as streamlined processes and reduced direct costs.
  • For the nine months ended September 30, 2019, revenue was $25.4 million, a 223% increase compared to $7.9 million in the same period last year due primarily to the revenues from Halo’s new California operation, Coastal Harvest.

Corporate Highlights

On July 16, 2019, the Company entered into an agreement with Falcon International (“Falcon”) to buy out the entire rental premium of its California locations. Halo issued an aggregate of approximately 2.7 million common shares for the buyout of a portion of rent at these two sites, providing the Company a total savings of C$1.2 million and overall reduced rent expenditure of 26%.

On July 18, 2019, the Company announced its inclusion in the OTC Markets Cannabis Index which trades on the OTCQX Market under the ticker: .OTCQXMJ. The Index’s goal is to highlight for investors the diversity of Cannabis companies that meet the financial, disclosure, and corporate governance standards required to trade on the OTCQX Market.

On August 6, 2019, the Company entered into a distribution agreement with Nabis, to supply California dispensaries with Halo’s full assortment of branded products. This agreement provides Halo with distribution coverage across the entire state of California. Nabis currently distributes over 60 brands to more than 650 dispensaries throughout California while providing an intuitive online platform that brings simplicity and efficiency to the cannabis supply chain.

On August 19, 2019, the Company announced a collaboration with ilo Vapor™ (“ilo”) to launch Levätä™, an alternative wellness brand focused on utilizing DabTabs™ technology to create a unique measured dose CBD consumption solution. Halo expects to begin sales of the Levätä™ collection to retailers in the fourth quarter of 2019, leveraging its direct sales force in California, Oregon, and Nevada. Halo also intends to increase sales of Levätä™ through the online retail marketplaces and by partnering with large distributors of cannabis peripherals in the United States and Europe.

On August 26, 2019, the Company announced it had been awarded two permanent California state licenses: a Type 11 Distribution and a Type 7 Volatile Manufacturing, for the company’s second facility in Cathedral City (“ICL 9”). As previously disclosed, ICL 9 also has Cathedral City local cannabis business licenses for both manufacturing and distribution.

On August 28, 2019, the Company announced a proposed purchase of a 17.5% equity interest in Ukiah Ventures Inc (“UVI”). UVI is a cannabis distribution, processing and manufacturing company providing biomass procurement and value-added services such as drying, trimming, packaging, freezing and storing cannabis. As part of the transaction, UVI will assist Halo in securing a steady supply of biomass by issuing a right of first refusal to Halo for three years, up to a monthly quota of 15,000 pounds, on all biomass. UVI will also provide Halo with rent-free access to its Ukiah facility for the first year of the strategic relationship, allowing Halo the opportunity to manufacture closer to the source of its biomass.

On September 4, 2019, the Company provided an update on the previously announced Bophelo transaction. Halo and Bophelo are in the process of negotiating mutually agreeable definitive agreements. Bophelo has secured third party funding of over $1.0 million being used in part to erect and plant an initial hectare that is projected to be fully implemented in the fourth quarter of 2019. Additionally, Bophelo is in discussion with local South African banks to secure a term loan to fund all grow operations as well as an extraction facility build out. This extraction facility is planned to be established and operating in close proximity to the cultivation site in 2020. Completion of this transaction will be subject to the satisfaction of certain conditions including the receipt of any requisite regulatory, governmental and stock exchange approvals.

On September 9, 2019, the Company announced that the warrants issued in connection with Halo’s private placement which closed on June 29, 2018 and business combination which closed on October 2, 2018 were approved for listing on the NEO Exchange. The Warrants commenced trading on September 11, 2019 under the symbol HLO.WT.A.

On September 13, 2019, the Company entered into a bulk supply agreement with Caliva to provide bulk distillate, bulk live resin and live resin packaged as finished products. The Agreement specifies pricing and minimum quantities per order by product category of 5 kilograms or more. Caliva is a leading company in California’s cannabis industry, holding 14 total cannabis licenses, placing products in more than 200 stores statewide and servicing roughly 700,000 total customers throughout the state.

Financings

On September 18, 2019, the Company announced that it has entered into an unsecured debt financing agreement (the “Loan Agreement”) with a private arm’s length lender for a principal amount of up to C$10.0 million. The agreement is for an initial twelve-month term with interest accruing at a rate of 9% per annum.

October 11, 2019 the Company announced that it has closed the previously announced non-brokered private placement of Halo common shares at a price of C$0.31 per share for aggregate gross proceeds of C$3.0 million.

On October 16, 2019, the Company announced that it closed a second tranche of the previously announced non-brokered private placement of Halo common shares at a price of C$0.31 per share for additional gross proceeds of approximately C$965k. The Company anticipates closing a final tranche for aggregate gross proceeds of up to C$1.0 million.

Issuance of Additional Common Shares

The Company has issued an aggregate of 10,440,320 common shares (the “Compensation Shares”) to certain directors, employees and independent contractors of the Company in lieu of cash consideration. The Company issued the Compensation Shares in two tranches. The first tranche of 3,997,648 Compensation Shares was issued on October 15, 2019 at a price of C$0.30 per share and in satisfaction of C$1,199,295 of payables owed by the Company. An aggregate of 3,832,167 of the Compensation Shares issued in the first tranche were subject to a hold period of four months plus one day from the date of issuance. The second tranche of 6,442,672 Compensation Shares was issued on November 13, 2019 at a price of C$0.26 per share and in satisfaction of C$1,675,096 of payables owed by the Company. An aggregate of 6,333,088 of the Compensation Shares issued in the second tranche are subject to a hold period of four months plus one day from the date of issuance. An aggregate of 275,065 of the Compensation Shares were issued to related parties (within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”)) of the Company at an average price of C$0.28 and in satisfaction of C$78,137 of payables owed by the Company.

In connection with the above transaction, certain “related parties” for the purposes of MI 61-101 received Compensation Shares and the issuance thereto is considered a “related party transaction” for the purposes of MI 61-101. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements available under MI 61-101. The Company is exempt from the formal valuation requirement in section 5.4 and the minority shareholder approval requirement in section 5.6 of MI 61-101 in reliance on sections 5.5(a) and 5.7(a), respectively, of MI 61-101 as the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves related parties, is not more than 25% of the Company’s market capitalization.

Outlook

The Company is currently in a solid cash position in a challenging capital market environment where other companies in the cannabis industry have had to scale back growth plans. With working capital of $19.1 million and growing margins, Halo is positioned to acquire new assets when opportunities present.

California has undergone large market shifts in the demand for cannabis products, with the market for distillate products diminishing, shifting regulations, and recent issues surrounding the vaporization industry. However, the Company had seen this particular transition coming and over the past quarter began to constrict and conserve capital, to survive and thrive in this environment. While revenues have diminished somewhat, the Company has doubled down on increasing gross profits and reducing expenses to increase cash flow.

Halo intends to build up its cash position and focus on efficiency while vetting potential acquisition targets. The Company will continue to target turn-key operations, whereby the target company brings positive cash flow into the consolidated business. Additionally, the Company will consider acquisitions which may help it become more vertically integrated, which in turn will help secure the supply chain and improve gross margin. Furthermore, the Company will target acquisitions that diversify revenue streams, create additional distribution channels, and become value-adding propositions.

California

Bulk distillate sales are down in California due to issues in the vape industry overall. The Company has shifted its focus to building upon their established B2B sales of oil and concentrate products to dispensaries and will scale this through the first half of 2020. The branded product portfolio includes distillate and live resin products in addition to live resin dab tabs sold under Hush. Halo has also begun evaluating opportunities for vertical integration into the California market in a similar fashion as its Oregon operations. The Company is now analyzing cultivation and retail dispensary opportunities as potential additions and diversification.

Oregon

Oregon has seen a successful third quarter of 2019, showing continued growth and increasing profit margins. The current issues with vape cartridges have caused the Company to pivot from a focus on distillate product to now providing the sale of flower and pre-rolls. Oregon did see a record harvest in the third quarter of 2019, which has allowed for strong sales in concentrates.

While the concentrate business remains strong, the Company is now developing strategies to rebuild the vaporizer business around cannabis derived terpene distillate as well as live resin sauce in cartridges. The DabTabs™ have also seen better traction with the introduction of premium live resin.

At this time, the Company has decided to halt and re-evaluate its entrance into the hemp extraction business, as the market has seen a massive price decline on hemp products. The Company however is seeking opportunities further down the value chain in potential partnerships and acquisitions of unique CBD products.

Nevada

The Company has significantly scaled down the Nevada business due to ongoing lawsuits surrounding additional dispensary licenses at the state level. Securing a retail footprint is a significant factor in driving revenue and profit in this market. The Company is currently evaluating the future of the Nevada operations but plans on retaining licenses for the time being as they have significant monetary value.

Lesotho, Africa

Lesotho continues to be the future of the Company’s international growth, unlocking access to one of the World’s largest cannabis grows of up to 205 hectares. Completion of the transaction is near and will be subject to the satisfaction of certain conditions including the receipt of any requisite regulatory, governmental and stock exchange approvals.

Bophelo has secured third party funding of over $1.0 million being used in part to erect and plant an initial hectare that is projected to be fully implemented in the fourth quarter of 2019. Additionally, Bophelo is in discussion with local South African banks to secure a term loan to fund all grow operations as well as an extraction facility build out that is expected to begin operations in 2020.

DabTabs™

With the issues facing the vaporization industry, the Company has refocused on DabTabs™, concentrates and products outside the vaporization line. On August 19, 2019, the Company announced the launch of Levätä™, an alternative wellness brand focused on utilizing DabTabs™ technology to create a unique measured dose cannabinoid (“CBD”) consumption solution. Halo also intends to increase sales of Levätä through the online retail marketplaces and by partnering large distributors of cannabis peripherals in the United States and Europe.

On July 22, 2019, Halo launched the Shatterizer™, the first custom vaporizer device designed for the DabTabs™ Dablets™. The Company launched the initial rollout of the Shatterizer™ in Oregon and projects strong growth with the device as demand for DabTabs™ continues to increase. In addition, the Company offers the Dablets™ Go and the Dablets™ All In One to promote consumer adoption at the point of sale. The Dab Tab Go is compatible with any 510-thread battery while the All In One offers consumers a vape pen like device to vaporize the Dablets™.

The Company’s ambitious leadership has positioned the business to benefit greatly from the structural changes the global cannabis market is contending with.

In the United States, Halo Labs will continue to build on its prevailing position as one of the country’s leading cultivators, producers and manufacturers of high-quality cannabis and cannabis related products. Meanwhile, the Bophelo acquisition holds a huge amount of promise to propel the Company forward.

Capital Markets Listings

Halo is now trading on multiple exchanges including a recent up listing to the OTCQX. Halo is part of the Horizon US Marijuana ETF (HMUS for Canada and HMUS.U for the United States).

Conference Call

Investors can call in and Q&A with Kiran Sidhu, the Chief Executive Officer, and Philip Van Den Berg, the Chief Financial Officer, at 9 a.m. EST on Friday, November 15, 2019:

Participant Toll Free Dial-In Number: (866) 211-3166
Participant International Dial-In Number: (647) 689-6581
Conference ID: 9063097

ABOUT HALO LABS

Halo is a cannabis extraction company that develops and manufactures quality cannabis oils and concentrates, which are the fastest growing segments in the cannabis industry. Halo is a global leader in cannabis oil and concentrates, having produced over 4.5 million grams of oils and concentrates since inception. The Company has expertise across all major cannabis manufacturing processes, leveraging a variety of proprietary processes and products. The forward-thinking company is led by a strong management team with deep industry knowledge and blue-chip experience. The Company is currently operating in California and Oregon, as well as in Nevada with our partner Just Quality, LLC, and in Lesotho with the Bophelo strategic partnership. With a consumer-centric focus, Halo will continue to market innovative, branded, and private label products across multiple product categories. Halo recently acquired Dispensary Track platform which will alleviate customer flow constraints experienced by dispensaries and enable direct consumer interaction.

For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com.

Cautionary Note Regarding Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Halo’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Halo’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein may include, but is not limited to, references to the ability of the Company to identify and complete acquisitions, the ability of the Company to increase revenue and margin on products sold by the Company, the ability of the Company to expand into CBD product lines, timing of the Company’s sales of Levätä™ and sales of Levätä™ through online retail marketplaces, the ability of the Company to negotiate mutually agreeable definitive agreements with and complete the proposed acquisition of Bophelo Bioscience, the ability of the Company to maintain or increase its current cash position, the future performance of capital markets and the future availability of capital to the Company, the development of the cannabis market in California, Oregon, Nevada, and other jurisdictions in which the Company operates, the ability of the Company to generate positive cash flow, the ability of the Company to improve the efficiency of its operations, the development of the market for concentrates and distillates, the ability of the Company to develop strategies to grow its business, the development of the market for hemp-based products, the ability of the Company to secure a retail footprint in Nevada, the development of the Company’s operations in Lesotho, and the ability of the Company to generate revenue in Lesotho.

By identifying such information and statements in this manner, Halo is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Halo has made certain assumptions. Although Halo believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Halo does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Halo or persons acting on its behalf is expressly qualified in its entirety by this notice.

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Published at Fri, 15 Nov 2019 13:06:35 +0000

Isracann Biosciences Announces OTC Trading Symbol Change to “ISCNF”, Effective November 15, 2019

Isracann Biosciences Announces OTC Trading Symbol Change to “ISCNF”, Effective November 15, 2019

Isracann Biosciences Inc.  (CSE: IPOT) (FRA: A2PT0E) (OTC: ISCNF) an Israel-based company focused on becoming a premier low cost, high quality cannabis producer for both Israeli and European export sales, is pleased to announce that the Financial Industry Regulatory Authority, Inc. has approved the Company’s request to change its OTC ticker symbol to ISCNF, effective as of the opening of market trading on November 15, 2019.

The previous trading symbol was ATLED and has been changed to more accurately represent our corporate brand and primary operations in the cannabis sector. The Company is also pleased to announce that it has secured DTC eligibility by The Depository Trust Company (“DTC”) for electronic settlement and transfer of its common shares in the United States.

“Trading under the new OTC ticker symbol ISCNF and achieving DTC eligibility is a major step forward in making it materially easier for US-based investors who are intrigued by the idea of buying shares in an Israeli cannabis venture operated by sector experienced entrepreneurs and capital markets professionals. Our strategic aim is straightforward and leverages the national brand excellence of the Israeli agricultural industry combined with planned industrial scale production of low cost premium quality cannabis targeting export into the massive European marketplace. It’s a uniquely scalable venture that combines numerous positive attributes including a team that knows how to execute,” stated Darryl Jones, Company CEO. “This is an important step in propelling our story to wider audiences and to materially grow our investor base.”

No action is required to be taken by current shareholders with relation to the trading symbol change, and no changes have been made to the Company’s share capital, management, or control. Isracann’s shares will continue to trade on the Canadian Securities Exchange (CSE) under the symbol CSE: IPOT, as well as the Frankfurt Stock Exchange under the symbol FRA: A2PT0E.

Updates relating to the additional corporate changes mentioned above will be announced as initiatives continue to progress.

ON BEHALF OF THE BOARD OF DIRECTORS

“Darryl Jones”

Darryl Jones
Chief Executive Officer and President

About OTC Markets Group Inc.
OTC Markets Group Inc. operates the OTCQX Best Market, the OTCQB Venture Market, and the Pink Open Market for 10,000 U.S. and global securities. Through OTC Link ATS and OTC Link ECN, the OTC Markets Group connects a diverse network of broker-dealers that provide liquidity and execution services. OTC Markets Group enables investors to easily trade through the broker of their choice and empowers companies to improve the quality of information available for investors.

About the Depository Trust Company
The Depository Trust Company (“DTC”), a subsidiary of the Depository Trust & Clearing Corporation (“DTCC”) and manages the electronic clearing and settlement of publicly traded companies. Securities that are eligible to be electronically cleared and settled through the DTC are considered “DTC eligible.” This reduces costs and accelerates the settlement process for investors and brokers, allowing the stock to be traded over a much wider selection of brokerage firms by coming into compliance with their requirements.

About Isracann Biosciences Inc. (CSE: IPOT) (FRA: A2PT0E) (OTC: ISCNF)
Isracann is an Israeli-based cannabis company focused on becoming a premier cannabis producer offering low-cost production targeting undersupplied, major European marketplaces. Based in Israel’s agricultural sector, Isracann will leverage its development within the most experienced country in the world with respect to cannabis research. The Company has secured agreements within Israel for medicinal marijuana cultivation. For more information visit: www.isracann.com.

The CSE does not accept responsibility for the adequacy or accuracy of this release.
All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ, materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the Canadian Securities Exchange, the British Columbia Securities Commission, the Ontario Securities Commission, and the Alberta Securities Commission.

Contact
Investor Relations
Toll Free: +1 855.205.0226
Email: inquiries@isracann.com
Web:  www.isracann.com

Primary Logo

Source: GlobeNewswire (November 15, 2019 – 9:00 AM EST)

News by QuoteMedia
www.quotemedia.com

Published at Fri, 15 Nov 2019 14:13:27 +0000

AeroGrow International, Inc Announces Its Q2 Results

AeroGrow International, Inc Announces Its Q2 Results

AeroGrow International, Inc
(OTCMKTS:AERO) Pronounces Its Financial Results For 2019.

There was a major decline in revenue represented by a figure of about
$4.4 million. Compared to a similar period in the previous year, this was a
terrible performance.It is representative of about 48%.

Wolfe’s perspective

This President & CEO J. Michael Wolfe has spoken concerning the
matter. He says that the loss in line with the company’s business operations
amounted to about $1.1 million. According to the official, this wasn’t
impressive at all. He drew a close reference to the performance that was
showcased over the previous year. During the time, this company obtained $672K
in profit. Wolfe says that the headline for the quarter will insinuate this
major decline in sales.

Defending the performance

The official says that a decline in sales is one of those reports they
give with a heavy heart. However, he defends the company outlining that what
happened was something to do with poor timing. The official believes that they
should have thought deeply before making decisions regarding their retail
landscape.

The passage of time has witnessed the company collaborate with some of
the major retail partners. Some of these include Kohl’s and Bed and Amazon.com,
Inc (NASDAQ:AMZN).

This company says that these are good businesses to collaborate with
when it comes to making shipments. It has been relying on them in the shipment
of its load-in orders for the holiday season.

During the August/September period, this business guru entrusted these
retailers with the shipment of a huge deal of its load-ins. In the current year
as well, the company has also decided to make large shipments through them. The
same will be going on from November to December.

The Gross Margin of the company turned out to be a major disappointment.
This had everything to do with the decline in the quarterly sales as well as
the channel shift. However, the company continues hoping for better times
ahead. It says that it will be looking forward to its holiday sales.

There is also the brighter side of things. There were still some areas
that performed pretty well including sell-thru results to the customers.

Published at Fri, 15 Nov 2019 14:30:32 +0000

InMed Pharmaceuticals Inc (OTCMKTS:IMLFF) Provides Updates For Its 1Q20

InMed Pharmaceuticals Inc (OTCMKTS:IMLFF) Provides Updates For Its 1Q20

InMed Pharmaceuticals
Inc (OTCMKTS:IMLFF)
is pleased to pronounce its financial results. These
are for the fiscal year 2020 and specifically the first-quarter performance.

A close look at the
results

 Investors in the
company will need to take a close look at the financial results reported for
the three months. That is the only way to make informed decisions regarding
investments according to analysts.

The President and Chief Executive Officer of InMed
Pharmaceuticals Eric A. Adams is one of the leaders that has spoken about the
performance. He commends the company for the progress it made in the first
quarter.

The turn of events

 The company
successfully submitted its Clinical Trial Application to the regulatory bodies.
It sought to obtain a nod to engage in a series of human clinical trials. It
would be utilizing INM-755 in the undertaking upon getting permission.

Adams is pleased about the company’s progress so far and has
termed it meaningful. Focus is currently on areas such as the company’s lead
programs, one of them being the biosynthesis manufacturing platform. The others
are INM-088 and INM-755 for EB in glaucoma. This leader says that they will
keep updating investors about their progress regularly. This business guru
remains focused on its North American investment communities. It also seeks to
pull in more of the international investment communities.

The company’s chief executive officer says there has been an
increase in the research and development segments. This is from a figure of
about $0.63 million for the three last months of 2018 to $2.33 million for
1Q20. He attributed the increase in expenditure on what was spend on INM-755
for the clinical trial. According to the official, it was a major boost to both
the toxicology and the pharmacology studies.

These studies can’t be taken for granted because they are
the cornerstone in the regulatory filing. Without them, it would be almost
impossible to kick-start the human clinical trials cut out to commence soon.

This company admits that it spent quite a large sum much in
buying its active pharmaceutical ingredients in INM-755. This had to be done in
advance before the commencement of the company’s much anticipated clinical
trials.

Published at Thu, 14 Nov 2019 13:58:29 +0000

Charlotte’s Web Appoints Former Bacardi Chief Administration Officer Jacques Tortoroli to Board of Directors

Charlotte’s Web Appoints Former Bacardi Chief Administration Officer Jacques Tortoroli to Board of Directors

BOULDER, CO, Nov. 14, 2019 /CNW/ – PRESS RELEASE – Charlotte’s Web Holdings, Inc. a hemp CBD extract products company, has announced the appointment of Jacques Tortoroli to its Board of Directors.

Tortoroli, who most recently served as Chief Administration Officer of Bacardi Limited in Bermuda, brings extensive global experience in finance and operations at both private and public companies. As CAO of Bacardi, the largest privately held spirits company in the world, he was a member of the Global Leadership Team and responsible for global finance, operations, information technology and real estate.

Before joining Bacardi in 2014, Tortoroli had spent more than a decade at Viacom, Inc. He held a number of senior finance roles at the multinational entertainment company, most recently serving as both Executive Vice President of Finance for Viacom and as EVP and Chief Financial Officer for Viacom Media Networks, formerly MTV Networks. Prior to that, he held various executive leadership roles at Young & Rubicam, Inc., PepsiCo, Inc., and KPMG.

Tortoroli also recently accepted a position as Executive in Residence and Lecturer at St. Thomas Aquinas College in New York. He has been a member of the college’s Board of Trustees since 2001, serving on the Audit Committee and the Investment & Finance Committee. Tortoroli previously served as a Board Member of the International Baccalaureate, as head of the Audit and Finance Committee and member of the Compensation Committee, Geneva and Cardiff.

“Jacques’ appointment is timely, with the company exploring plans to expand globally as the market leader in CBD products,” said Charlotte’s Web Chairman of the Board and Co-Founder Joel Stanley. “His deep financial knowledge and breadth of international experience in public and private companies will make an important contribution during our next phase of growth.”

Tortoroli stated, “I am honored to serve on the Charlotte’s Web Board of Directors. It’s an exciting time in the growing CBD industry, and Charlotte’s Web has earned its dominant market position through a combination of innovative products and world class executive talent.”

Tortoroli, who will serve on the Compensation and Audit Committees, brings the number of Directors to seven. In addition to Joel Stanley, he joins Jared Stanley, the Company’s Co-Founder and Vice President of Cultivation Operations; Charlotte’s Web CEO Deanie Elsner; John Held, Executive Vice President, General Counsel, and Secretary of Omega Protein Corporation; William West, Co-Founder and President of Tesseract Medical Research; and Shane Hoyne, Managing Director & Chief Marketing Officer of Quintessential Brands Group.

Published at Thu, 14 Nov 2019 22:48:00 +0000

Aurora Cannabis Announces First Quarter 2020 Results & Corporate Action Plan

Aurora Cannabis Announces First Quarter 2020 Results & Corporate Action Plan

Aurora Cannabis Inc. (the “Company” or “Aurora“) (NYSE | TSX: ACB), the Canadian company defining the future of cannabis worldwide, announced today its financial and operational results for the first quarter of fiscal 2020 ended September 30, 2019.

Aurora Cannabis Inc. (CNW Group/Aurora Cannabis Inc.)

“Over the past several years, Aurora has earned its place as a global leader in the cannabis industry. Despite short term distribution and regulatory headwinds in Canada that have temporarily impacted the industry, the long-term opportunity for Aurora in the global cannabis and cannabinoids market is immense,” said Terry Booth, CEO, Aurora Cannabis. “Aurora has, and will continue to focus on everything in our control. Our success in doing this was demonstrated again this quarter by continued strong improvement in our core KPIs. We delivered solid operating results this quarter, exemplified by our industry-leading cash cost to produce which declined another 25% to $0.85 per gram this quarter, as well as by our industry-leading gross margins and market share.”

Mr. Booth added, “In order to capitalize on this global market, we recognize the need to be nimble and proactive. To enhance our financial flexibility and position us to take maximum advantage of future growth opportunities, we have also taken decisive steps to immediately strengthen our balance sheet. Specifically, these steps include: (1) the announcement of a formal plan to settle our 5.0% convertible debentures due March 2020, (2) a reduction in our capital investments over the next several quarters by over $190 million to better match near-term capacity expansion with anticipated demand, while maintaining our long-term demand outlook, and (3) raising over US$124 millionin gross equity proceeds since the start of fiscal 2020 through our at-the-market (“ATM”) financing program.”

First Quarter 2020 Highlights

(Unless otherwise stated, comparisons are made between Fiscal Q1 2020 and Q4 2019 results and are in Canadian dollars)

  • Cash cost to produce per gram sold declined 25% sequentially to $0.85 per gram, delivering on the Company’s promised sub one dollarper gram target KPI
  • Net cannabis revenue of $70.8 million compared to $94.6 million in Q4 2019;
    • Non-wholesale cannabis revenue declined 19% sequentially, comprised of:
      • Medical cannabis revenue of $30.5 million, an increase of 3% sequentially
      • Canadian consumer cannabis revenue of $30.0 million, a decline of 33% sequentially as provincial ordering slowed considerably during the summer as distributors worked through inventories and as the industry was impacted by the slow pace of retail store licensing
    • Wholesale revenues of $10.3 million, at 58% gross margin
  • Production volume increased 43% sequentially to 41,436 kgs
  • Total gross profit of $53.7 million and gross margin on cannabis net revenue of 58%, driven by a significant reduction in cash cost of production
  • Aurora’s medical patient base expanded 8% to 91,116 sequentially. As at the date of this release, Aurora has approximately 91,408 active registered patients
  • Closed an amended and upsized $360 million secured credit facility which includes an accordion feature that enables Aurora to upsize the facility by approximately $40 million. As at the date of this release, approximately $160 million of this facility has not been drawn and remains available to Aurora
  • Sold remaining 28.8 million shares of The Green Organic Dutchman Holdings Ltd. for gross proceeds of $86.5 million

Subsequent Events & Corporate Action Items

Subsequent to the quarter end, the Company made several decisions designed to streamline its operations, provide financial flexibility and reduce financial leverage in response to a changing market and regulatory environment, while supporting our long-term growth:

  • Aurora has secured the commitment of investors holding approximately $155 million of the principal value of the 5% March 2020Convertible Debentures (“March Convertible Debenture”) to voluntarily convert their Debentures under a temporarily amended early conversion privilege (the “Amended Early Conversion Privilege”). Under this contemplated transaction, all remaining holders of the March Convertible Debentures will be granted an opportunity, for a period of time, at a price equal to a 6% discount to a 5-day volume weighted average price (“VWAP”) to convert their debentures. Any holders not exercising their early conversion privilege will remain holders of their original debentures that have a 5% coupon, $13.05 conversion price and mature on March 9, 2020.
  • In an effort to expand responsibly in line with global demand, the Company has made the decision to immediately cease construction activity at its Aurora Nordic 2 facility in Denmark, which is expected to save approximately $80 million over the next 12 months. Aurora Nordic 1, a 100,000 square foot facility located in Odense, Denmark, is fully completed, has received a production license, and the Company expects to receive a license to sell shortly. Furthermore, the Company has decided to defer the majority of the final construction and commissioning activities at its Aurora Sun facility for the foreseeable future which is expected to conserve approximately $110 million of cash. With the work completed to date, both the Aurora Nordic 2 and Aurora Sun facilities are now fully enclosed.  The Company expects to have at least six flower rooms completed and in operation at Aurora Sun in 2020, for a total of 238,000 square feet. As global demand develops, or as Aurora’s market share in the global cannabis market increases, we will reactivate these projects.
  • Aurora has been active under the US$400 million ATM distribution program as it represents a strategically valuable source of equity capital.  Fiscal year to date, the Company has raised gross proceeds of US$124.4 million through the issuance of 29,057,944 common shares.

Q1 2020 Key Financial and Operational Metrics

($ thousands, except Operational Results)

Q1 2020

Q4 2019 (4)

$ Change

% Change

Financial Results

Total net revenue

$75,245

$98,942

($23,697)

(24)%

Cannabis net revenue (1)(2a)

$70,776

$94,640

($23,864)

(25)%

Medical cannabis net revenue (1)(2a)

$30,450

$29,651

$799

3%

Consumer cannabis net revenue (1)(2a)

$30,022

$44,882

($14,860)

(33)%

Wholesale bulk cannabis net revenue (1)(2a)

$10,304

$20,107

($9,803)

(49)%

Gross margin before FV adjustments on cannabis net revenue (1)(2b)

58%

58%

N/A

0%

Gross margin before FV adjustments on medical cannabis net revenue (1)(2b)

63%

60%

N/A

3%

Gross margin before FV adjustments on consumer cannabis net revenue (1)(2b)

53%

55%

N/A

(2)%

Gross margin before FV adjustments on wholesale bulk cannabis net revenue (1)(2b)

58%

61%

N/A

(3)%

Selling, general and administration expense

$81,132

$72,869

$8,263

11%

Balance Sheet

Working capital

$123,750

$227,802

($104,052)

(46)%

Cannabis inventory and biological assets (3)

$178,748

$144,275

$34,473

24%

Total assets

$5,606,799

$5,502,830

$103,969

2%

Operational Results – Cannabis

Cash cost to produce per gram sold (1)(2c)

$0.85

$1.14

($0.29)

(25)%

Active registered patients

91,116

84,729

6,387

8%

Average net selling price of medical cannabis (1)

$8.00

$8.51

($0.51)

(6)%

Average net selling price of consumer cannabis (1)

$5.28

$5.14

$0.14

3%

Average net selling price of wholesale bulk cannabis (1)

$3.46

$3.61

($0.15)

(4)%

Kilograms produced

41,436

29,034

12,402

43%

Kilograms sold

12,463

17,793

(5,330)

(30)%

(1) 

These terms are defined in the “Cautionary Statement Regarding Certain Non-GAAP Performance Measures” section of the MD&A.

(2) 

Refer to the following sections in the MD&A for reconciliation of non-GAAP measures to the IFRS equivalent measure:

a.

Refer to the “Revenue” section in the MD&A for a reconciliation of cannabis net revenue to the IFRS equivalent.

b.

Refer to the “Gross Margin” section in the MD&A for reconciliation to the IFRS equivalent.

c.

Refer to the “Cash Cost of Sales of Dried Cannabis and Cash Cost to Produce Dried Cannabis Sold – Aurora Produced Cannabis” section of the MD&A for reconciliation to the IFRS equivalent.

(3)

Represents total biological assets and cannabis inventory, exclusive of merchandise, accessories, supplies and consumables.

(4)

During the three months ended June 30, 2019, the Company recorded non-material year-end corrections to: (i) capitalize certain payroll, share-based compensation and borrowing costs, related to the construction of our production facilities that were incorrectly expensed in prior periods; and (ii) reverse items that had been over-accrued in prior periods. The net impact of these adjustments to Q4 2019 Adjusted EBITDA was a $14.9 million reduction in reported operating expenses.

($ thousands)

Three months ended

September 30, 2019

June 30, 2019

September 30, 2018

Net revenue

75,245

98,942

29,674

Design, engineering and construction services

(1,489)

Patient counseling services

(1,055)

(606)

(1,242)

Analytical testing services

(816)

(317)

(447)

Other cannabis segment revenues (accessories, hemp, other)

(2,168)

(2,760)

(1,385)

Horizontally integrated business revenue

(430)

(619)

(515)

Cannabis net revenue

70,776

94,640

24,596

The table below outlines the breakdown of cannabis net revenue between our medical, consumer and wholesale bulk markets, as well as our dried cannabis and cannabis extracts for the three months ended September 30, 2019 and the comparative periods.

($ thousands)

Three months ended

September 30, 2019

June 30, 2019

September 30, 2018

Medical cannabis net revenue

Canada dried cannabis

14,882

14,438

13,752

Canada cannabis extracts (1)

10,606

10,732

7,488

International dried cannabis

4,553

4,481

2,803

International cannabis extracts (1)

409

Total medical cannabis net revenue

30,450

29,651

24,043

Consumer cannabis net revenue

Dried cannabis

26,889

41,813

533

Cannabis extracts (1)

3,133

3,069

20

Total consumer cannabis net revenue

30,022

44,882

553

Wholesale bulk cannabis net revenue

Dried cannabis

7,432

20,107

Cannabis extracts (1)

2,872

Wholesale bulk cannabis net revenue

10,304

20,107

Total cannabis net revenue

70,776

94,640

24,596

(1)

Cannabis extracts revenue includes cannabis oils, capsules, softgels, sprays and topical revenue.

Consolidated net revenue was $75.2 million in Q1 2020 as compared to $98.9 million in the prior quarter. Medical cannabis net revenues increased to $30.5 million in Q1 2020, up 3% over the prior quarter. Consumer cannabis revenues were $30.0 million in Q1 2020, a decline of 33% from the prior quarter and contributed 40% to total consolidated net revenue. The decline in cannabis net revenues is primarily attributable to previously identified constraints in Canadian consumer retail and distribution infrastructure coupled with a decline in wholesale revenues. The Canadian wholesale market is rapidly evolving and remains an important long-term opportunity for Aurora.

As a leader in highly automated, low cost production, Aurora is well positioned to align its operating assets to rapidly respond to evolving consumer preferences while pursuing potential white label wholesale opportunities and building a strong inventory of high-quality derivative products for launch later this year.

Average net selling price of cannabis increased by $0.36 per gram over the prior quarter from $5.32 in Q4 2019 to $5.68 in Q1 2020. This increase is primarily attributable to an increase in the average net selling price of consumer cannabis coupled with a decrease in sales volumes to the bulk wholesale markets which yield lower average net selling prices as compared to the consumer and medical markets.

Gross margin on cannabis net revenue remained stable at 58% in Q1 2020, compared to 58% in the prior quarter.

During Q1 2020, Aurora produced 41,436 kilograms of cannabis as compared to 29,034 kilograms in the prior quarter. The 42.7% increase in production output was primarily due to continuing production scale up at the Company’s Aurora Sky facility. While Aurora Sky has delivered well above expectations from a capacity perspective, in responding to shifting consumer preferences the Company is likely to plant higher potency, lower yielding strains which are in higher demand in the recreational market. As such we do not expect near term production to reach levels achieved in Q1 2020, and the Company continues to operate at a 150,000 kg annual production capacity.

Excluding the impact of $10.6 million in out-of-period adjustments that were recognized in Q4 2019, Q1 2020 SG&A decreased by 3% to $81.1 million. The decline was driven by a decrease in fulfilment and shipping costs, and a decline in one-time expenses related to derivative product launches and regulatory fees during Q1 2020.

Adjusted EBITDA loss was $39.7 million in Q1 2020 compared to $26.6 million in Q4 2019, excluding the impact of the $14.9 million out-of-period adjustments recognized in the prior quarter. Developing a profitable and robust global cannabis company is extremely important to Aurora. While the Company strongly believes the global market opportunity for cannabis is robust, there is uncertainty in the timing of revenue ramp-up in our core markets, and we continue to invest in our global operations which may result in near term challenges to achieving positive adjusted EBITDA. However, the Company expects adjusted EBITDA to continue to improve in the future as we increase revenue through the sale of higher-margin extract products and increase gross margins through economies of scale, while investing in corporate capabilities with controlled SG&A growth.

Outlook 

The global medical cannabis and hemp derived cannabinoids markets represent a significant opportunity for Aurora. To support the Company’s prospects in these markets, Aurora continues to make necessary investments that will build long-term value for its shareholders while balancing growth with prudent financial management and capital allocation. This focus includes aligning Aurora’s planned cultivation assets and capital expenditures with global cannabis demand. With the Company’s operating cultivation assets outperforming nameplate capacity, Aurora is positioned to the meet near term global market demand and to pursue long term white label and contract manufacturing agreements with distribution partners in the Canadian and international markets.

Effective October 17, 2019, new regulations under the Cannabis Act came into effect which will allow for the sale of higher value, in-demand products such as vape pens, edibles, and other derivatives in the consumer market (“Cannabis 2.0”). The implementation of Cannabis 2.0 remains the most important market opportunity for the Company in Canada. Aurora is extremely well positioned and has prioritized its resources to prepare for a successful initial launch and supported an ongoing replenishment strategy to ensure consumers across Canada will have access to a diverse portfolio of high-quality derivative products they want to buy. Aurora expects to begin shipping these new product formats to provincial regulators starting late December 2019.

The other near-term focus and market opportunity for the Company is expanding its operating footprint in the United States. To ensure a successful entry, Aurora is evaluating a number of potential accretive alternatives with a focus on adding operating cash flows. The Company is committed to engage only in activities which are permissible under both state and federal laws.

Conference Call

Aurora will host a conference call today, November 14, 2019, to discuss these results. Terry Booth, Chief Executive Officer, Glen Ibbott, Chief Financial Officer, Cam Battley, Chief Corporate Officer, and Michael Singer, Executive Chairman, will host the call starting at 6:00 p.m. Eastern time. A question and answer session will follow management’s presentation.

Date:

Thursday, November 14th, 2019

Time:

6:00 p.m. Eastern Time | 4:00 p.m. Mountain Time

Webcast:

https://bit.ly/2JBOI2s 

Replay:

(416) 849-0833 or (855) 859-2056

until 12:00 midnight Eastern Time Thursday, November 21, 2019

Reference Number:

3751059

About Aurora 

Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 625,000 kg per annum and sales and operations in 25 countries across five continents, Aurora is one of the world’s largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution.

Highly differentiated from its peers, Aurora has established a uniquely advanced, consistent and efficient production strategy, based on purpose-built facilities that integrate leading-edge technologies across all processes, defined by extensive automation and customization, resulting in the massive scale production of high-quality consistent product. Designed to be replicable and scalable globally, our production facilities are designed to produce cannabis at significant scale, with high quality, industry-leading yields, and low-per gram production costs. Each of Aurora’s facilities is built to meet European Union Good Manufacturing Practices (“EU GMP”) standards. Certification has been granted to Aurora’s first production facility in Mountain View County, the MedReleaf Markham facility, and its wholly owned European medical cannabis distributor Aurora Deutschland. All Aurora facilities are designed and built to the EU GMP standard.

In addition to the Company’s rapid organic growth and strong execution on strategic M&A, which to date includes 17 wholly owned subsidiary companies – MedReleaf, CanvasRX, Peloton Pharmaceutical, Aurora Deutschland, H2 Biopharma, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics, Anandia, HotHouse Consulting, MED Colombia, Agropro, Borela, ICC Labs, Whistler, Chemi Pharmaceutical, and Hempco – Aurora is distinguished by its reputation as a partner and employer of choice in the global cannabis sector, having invested in and established strategic partnerships with a range of leading innovators, including: Radient Technologies Inc. (TSXV: RTI), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), CTT Pharmaceuticals (OTCC: CTTH), Alcanna Inc. (TSX: CLIQ), High Tide Inc. (CSE: HITI), EnWave Corporation (TSXV: ENW), Capcium Inc. (private), Evio Beauty Group (private), and Wagner Dimas (private).

Aurora’s Common Shares trade on the TSX and NYSE under the symbol “ACB” and is a constituent of the S&P/TSX Composite Index.

For more information about Aurora, please visit our investor website, investor.auroramj.com

Terry Booth, CEO

Aurora Cannabis Inc.

Forward Looking Statements and Non-IFRS Industry Measures
This news release makes reference to certain non-IFRS measures, including certain industry metrics. These metrics and measures are not recognized measures under IFRS do not have meanings prescribed under IFRS and are as a result unlikely to be comparable to similar measures presented by other companies. These measures are provided as information complimentary to those IFRS measures by providing a further understanding of our operating results from the perspective of management. As such, these measures should not be considered in isolation or in lieu of review of our financial information reported under IFRS. This news release uses non-IFRS measures including “cannabis net revenue”, “Adjusted EBITDA”, “cannabis inventory and biological assets”, “cash cost to produce per gram sold”, “average net selling price”, “production capacity”, and “SG&A”.  The foregoing are commonly used operating measures in the industry but may be calculated differently compared to other companies in the industry. These non-IFRS measures, including the industry measures, are used to provide investors with supplementary measures of our operating performance that may not otherwise be apparent when relying solely on IFRS metrics. Definitions of the non-IFRS measures can be found in our financial statements, MD&A and this news release.

This news also release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (“forward-looking statements”). Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur and include, but are not limited to the settlement of the March Convertible Debentures,  reduction in capital investments, and the successful launch and replenishment strategy for Cannabis 2.0 . These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of our products, customer experience and retention, the development of third party government and non-government adult-use  sales channels, managements estimation of consumer demand in Canada and in jurisdictions where the Company exports, expectations of future results and expenses, the availability of additional capital to complete construction projects and facilities improvements, the risk of successful integration of acquired business and operations, the ability to expand and maintain distribution capabilities, the impact of competition, and the possibility for changes in laws, rules, and regulations in the industry. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Neither TSX, NYSE nor their applicable Regulation Services Providers (as that term is defined in the policies of the Toronto Stock Exchange and New York Stock Exchange) accept responsibility for the adequacy or accuracy of this release.

Cision

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SOURCE Aurora Cannabis Inc.

Published at Thu, 14 Nov 2019 22:09:26 +0000

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