Aurora Cannabis Inc. (NYSE: ACB) reported that an undisclosed amount of dried cannabis flower will be held back from sales in this quarter to produce cannabis edibles and vape products to be sold at a later date. The company’s ability to sell dried cannabis flower has more than met the demand in Canada, as shown in the company’s most recently released financial report for the period which began in December 2018 and ended in March of this year. Aurora Cannabis sold more cannabis products last quarter for a total net revenue increase of 20% to $48.5 million with a 37% increase in recreational sales when compared to the previous quarter.
Cannabis production with Aurora Cannabis is projected and expected to reach 25,000 kilograms, or 25,000,000 grams, by the end of this current financial quarter which ends on June 30th. The 25,000 kilograms produced this quarter will provide the undisclosed and unspecified amount of dried cannabis flower which will go towards the production of cannabis edibles and cannabis vape products.
Glen Ibbott, Chief Financial Officer of Aurora Cannabis, stated: “What we’re trying to do is learn from the challenges of the industry last year and the initial launch of consumer legalization — we absolutely have to have sufficient inventory to launch these products properly. So if that means taking a little bit of revenue out of Q4 and putting it into inventory, into new products, then that’s what we’ll do.”
Ottawa, the capital of Canada, indicated that cannabis edibles and cannabis concentrates would be legal for recreational purchase in October of this year. The estimated time and date for product approvals and in-effect legal sales is not specified at this time.
Cam Battley, Chief Corporate Officer of Aurora Cannabis, stated: “In this phase of the sector’s development, I would say, absolutely, that the number one critical success factor is the ability to produce and sell an enormous volume of cannabis, and we have got that in spades.”
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Note: The author of this article does have a current position in Aurora Cannabis stock.