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Cannabis Professional’s daily roundup of industry news. View archive here.

Piper Sandler cuts price to target on Aurora to $1

Investment bank Piper Sandler cut its price target for Aurora Cannabis Inc. to $1 from $3, citing expectations that the company will have negative cash flow from operations until the second half of 2021. Moreover, analyst Michael Lavery expects Aurora will have a short term deficit of $200-million, which “may prove difficult to finance in this capital environment.”

“We project it would also still have to refinance its C$360M of debt due August 2021, after which we project it could have over C$800M in debt and C$30M cash in F2Q22 (which would be about a third of its accounts payable balance),” Mr. Lavery wrote.

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Hopes that underperformance in the Canadian market will be offset by exports to Europe have been hampered by Aurora’s sales being halted in Germany, Mr. Lavery wrote.

“Aurora expects to re-start medical sales in Germany in early 2020, but we have little visibility on this process and government agencies can be notoriously slow. The temporary sales halt could have a lasting impact in the German medical cannabis market, as doctors tend to prescribe products that have strong track records of availability,” he wrote.

– Mark Rendell

MediPharm ships first white label Cannabis 2.0 products

MediPharm Labs Corp. said on Thursday that it has shipped its first white label Cannabis 2.0 products to provincial wholesalers. The shipment was made in partnership with a B.C. numbered company that does business under the name Shelter Brand House.

The 12-month white label agreement will see MediPharm fill and ship vape cartridges for Shelter. The first cartridges were shipped in December under the brand ‘Wayfarer’ to British Columbia., Saskatchewan and Manitoba.

“Under the Agreement, MediPharm Labs will receive certain fees for services related to procurement, formulation, quality assurance, manufacturing and distributing to provincial retailers, along with a portion of revenue from sales of the Shelter vape cartridges,” the company said in a news release.

- Mark Rendell

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