Cannabis Professional’s daily roundup of industry news. View archive here.
Aphria reported earnings this morning, posting net revenue in the first quarter of 2020 of $126.1-million, a decrease of 2 per cent from the previous quarter; Elsewhere, Canopy Growth said it has closed the acquisition of UK-based Beckley; Indiva announced an $11-million credit facility; and Canopy says it has sold its 13.2-per-cent stake in Australian company AusCann.
– Rob Gilroy
Aphria reports growth in recreational revenue
Aphria Inc. said Tuesday that net revenue in the first quarter of 2020 ended Aug. 31, 2019, was $126.1-million, an increase of 849 per cent from the first quarter of 2019, and a decrease of 2 per cent from the previous quarter.
“This solid start to the year keeps us on track to achieve our fiscal year 2020 financial outlook,” said interim CEO Irwin D. Simon. “Going forward, we remain focused on our highest-return priorities both in Canada and internationally as our team furthers the development of our medical and adult-use cannabis brands to drive growth through innovation and return value to shareholders.”
Other key operating highlights:
- Revenue for adult-use cannabis of $20-million in the first quarter, an increase of 8 per cent from previous quarter.;
- Net income of $16.4-million and adjusted EBITDA of $1-million in the first quarter.;
- Adjusted EBITDA from cannabis operations of $1.3-million in the first quarter.;
- Ended quarter with a strong balance sheet and liquidity, including $464.3-million of cash, cash equivalents and liquid marketable securities.
Canopy Growth completes acquisition of Beckley
Canopy Growth Corporation said Tuesday it has closed the previously announced acquisition of all outstanding shares in the global cannabinoid based research company Beckley Canopy Therapeutics (Beckley Canopy), including the joint commercial venture Spectrum Biomedical UK. As a part of the acquisition, Canopy Growth says its European management structure will evolve. Paul Steckler and Steven Wooding will assume the roles of co-managing directors in charge of all European operations. Beckley Canopy was formed as a joint venture in January 2018 between Beckley Research & Innovations and Canopy Growth to research and develop clinically validated cannabis-based medicines.
Indiva Secures $11-million in financing
Indiva Limited said Tuesday it has entered into definitive documentation with an institutional lender in respect of a $7.5-million secured bridge loan facility and a $6.5-million secured demand loan facility. “As we look ahead towards Cannabis 2.0, we are pleased to secure the necessary capital to execute on growth objectives,” said Niel Marotta, Indiva’s president and CEO. The company says proceeds under the facility are expected to be used for repayment of an outstanding convertible debenture and related interest, Indiva’s facility expansion, capital purchases of extraction and encapsulation equipment, as well as bulk biomass purchases and general working capital.
Canopy Growth announces sale of AusCann stake
Canopy Growth Corp. said Tuesday it has sold its 42,087,639 shares in Australian cannabis company AusCann Group Holdings (AusCann) via an off market block trade at $0.15 per share for gross proceeds of $6.3-million. The trade was facilitated by Canaccord Australia. Canopy says the sale represents Canopy Growth’s total 13.2-per-cent interest in AusCann. “Canopy Growth remains optimistic about the future of the Australian medical cannabis market and will continue to collaborate with the team at Auscann to support greater physician understanding and patient access to high quality cannabis products throughout Australia,” said Mark Zekulin, CEO, Canopy Growth. “The decision to divest our position in AusCann, which we obtained three years ago in exchange for support provided, will allow us to sharpen our focus on our wholly-owned operations in the market, while continuing to collaborate with our partners at AusCann.”