Cannabis Producers’ Halt in Expansion Pushes Aurora Stocks Down To 11%

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Aurora Cannabis Inc. has shown a dramatic decline of about 24% in revenue by comparing sales of C$75.3 Million versus C$98.9 Million in the previous quarter. The company is showing a slowdown in its expansion plans in Canada and abroad. It was clearly seen that the US-traded shares of Aurora dipped almost 11.3% during the long session. The fiscal quarter revenue earned by Aurora summed to C$12.8 Million that is a penny per share rather than its 12 cents a share that is C$105.5 Million. The company has declared that it sold C$30.5 Million of medical weed, while its recreational sales were seen to plunge from 33% to C$30 Million owing to low provincial ordering. Around C$10.3 Million of wholesale pots of lower quality were also sold.

At the time of summer, the available supplies were used and the shelves were also stocked up to the limits. The supplies were found to be enough for the retailers but still, the next quarter sales were found to be affected as the legalization of edibles, drinkables, and vape products were only going to be available to the Canadian retailers by next month. Until October, the products will be illegal. From 41.4 Tons of products, it sold only 12.5 Tons of cannabis during the first quarter, which means the cost per gram fell to C$0.85 from C$1.14. The company is planning to halt the production in Denmark and also delay the Aurora Sun facility construction in Canada. The halts in construction will help save C$190 Million. The company has announced that it has secured investors holding C$155 Million of its March 2020 debentures.

Similarly, another Canada-based company, Canopy Growth Corp., has shown a dramatic loss of C$374.6 Million during the fiscal second quarter that is C$1.08 a share on profits of C$76.6 Million. In Canada, the companies are facing trouble to raise their sales and finances as the products cannot be legally sold until October. However, compared to all the companies, Canopy Growth Corp. seems to top the chart in terms of revenue gain and sales.

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