Edmonton-based cannabis producer Aurora Cannabis (TSX: ACB) (OTC: ACBFF) announced its financial and operational results for Q2 of fiscal 2018, ended December 31, 2017.
Among the results:
-Revenue rose 41% over Q1 to $11.7 million, up 200% over the same quarter a year ago.
-Active patients rose 21% to 21,718 from Q1, up 78% from year ago.
-Grams sold rose 30% to 1,161,809 over Q1, up 115% over last year.
-Average selling price rose 1.7% to $8.36, up 40% over last year.
-Cost of sales was 1.74/gram, and cost to produce was $1.41/gram, totaling $3.15/gram
-Gross margins of Aurora produced cannabis was 78%
Within the $11.7 million in revenue:
|-Dried cannabis sold in Canada||$5.8 million, up 23.9% sequentially from Q1 2018;|
|-Dried cannabis sold in Germany||$2.5 million, up 101.1% sequentially;|
|-Service and other revenues||$2.0 million, up 109.7% sequentially, and|
Aurora owns facilities with capacities expected to exceed 240,000 kilograms of cannabis per year. It has long term supply agreements expected to provide another 23,000 kilograms of organic cannabis per year, and is working to close the purchase of CanniMed Therapeutics Inc. which would bring another 7,000 kilograms of immediate capacity.
Total current, fully-funded capacity will likely exceed 270,000 kilograms annually, including Aurora Nordic capacity.
“With three production licenses, over 240,000 kg per annum in pro-forma funded capacity, multiple distribution channels, and the pending acquisition of CanniMed, we are well positioned to pursue accelerated growth in the domestic and international medical markets, said Terry Booth, CEO. Finally, our partnership with Liquor Stores N.A. shortens our time to market in creating a large bricks-and-mortar cannabis retail network in preparation for the adult consumer use market.”
CanniMed will add 20,000 patients and 19,000 kg per annum, new drug delivery technologies and high-margin cannabis products, an expanded international network, an exclusive supply agreement with national pharmacy chain PharmaChoice, strong domestic and international medical cannabis brands, and a team of over 200 people, with depth in scientific research.
Growth in Germany and Europe
Aurora ships cannabis to its German based subsidiary and EU distributor, Pedanios. To date, Pedanios has supplied over 2,200 pharmacies, with German sales more than doubling over the previous quarter to $2.5 million.
Germany, with over 82 million people, and broad national insurance coverage, continues to look good as a medical cannabis market. December applications for insurance reimbursement were roughly equal to the applications for March-November.
Pedanios is one of a few organizations in Germany licensed to export to other EU countries.
Financing and Outstanding shares
Aurora has $316.8 million in new financings via two private placements. It also has lots of outstanding warrants, options and compensation options, as well as convertible notes that will be converted into common shares.
Aurora has roughly the following securities issued and outstanding:
|Securities||February 7, 2018|
|Issued and outstanding shares||489,922,167|
|Restricted share units 50,000||2,150,000|