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While the Aurora business figure for the third quarter, which stood at just $ 65.1 million ($ 48.45 million), has not exceeded the Consensus expectations of $ 71.7 million ($ 53.37 million), the company nearly doubled its production volumes from one year to the next, with more than 15,500 kilograms of cannabis, recorded a 305% increase in net income compared to the same period last year and reiterated its intention to generate positive cash flow by the end of its current quarter.
Cam Battley, chief executive of Yahoo Finance, said in an exclusive interview with YFi PM, that even though cannabis prices fell by 20% to $ 6.40 per gram, investments in key areas, projects in the world, and home-grown projects, were expected to increase. Expansion in the United States and lower production costs would help bring the company to positive EBITDA.
"The average price per gram in our last quarter has gone down slightly, which is why we have transferred a lot of dried flowers and less of our derivatives and their margin is higher," he said. "We believe we will still achieve this positive EBITDA for the June quarter, which we have achieved since the beginning of the year and that is what we are following."
Enter the US market
<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Battley also spoke about Aurora's project of penetrate the US market following the initiatives taken by their competitors, Tilray and Canopy Growth, to create access to a market that analysts estimate is ten times larger than opportunity in Canada.Billionaire investor Nelson Peltz named strategic advisor in March& nbsp; and Battley revealed how he explained how Aurora could soon acquire American cannabis players. "data-reactid =" 20 "> Battley also discussed Aurora's plans to enter the US market following the installation of competitors Tilray and Canopy Growth, and Aurora hired investor-billionaire Nelson Peltz as a strategic advisor in March and Battley revealed how he was guiding the way Aurora could soon acquire cannabis players in the United States.
"One of the first things that he said to us was:" Take your time to enter not just one mature sector, but into many different areas. And he said, "It would be a better thing for our shareholders to do. & # 39; "
<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Any entry on the American market should go through several needles for appease regulators and trade, similar to the hurdles you've traveled & nbsp;Canopy Growth Signs Agreement to Acreage Holdings Acquired Multi-State American Cannabis Operator& nbsp; which must be executed only when the sale of cannabis becomes authorized at the federal level. Battley said that Aurora would seek to structure transactions in a similar manner, without breaking the rules of trade, but by maximizing sales opportunities for multiple products in multiple states. "Data-reactid =" 22 "> Any entry into the US market should go through several needles to appease regulators and trade, similar to the hurdles encountered in Canopy Growth's agreement in principle for the purchase US multi-state cannabis operator Acreage Holdings, which should only be executed when cannabis sales become authorized at the federal level, would seek to structure the agreements in a similar manner, without breaking the rules of the law. exchange, but maximizing the sales opportunities of several products in several states.
"Our interest in participating in large vertical events with companies, often based in the United States, is to extend this opportunity as much as possible," he said. "We do not want to give up control to a company in a mature industry. Ideally, we want to participate in several vertical markets and we see the opportunity to do so and it will be the best thing for our shareholders. "
If the priority is historical, investors could expect Aurora to finance future transactions with more equity issues. The company has seen outstanding shares soar to more than $ 1 billion through acquisition financing with common shares over the past year. However, Battley said this trend could change as the company turned these transactions into equities in a positive future in terms of cash flow.
"This shareholder capital has been invested very, very judiciously. For the future, let's not forget that we will soon be generating positive cash flow, "he said. "So we have excellent access to capital right now, we have positive cash flow. The future is rather promising.
<p class = "canvas-atom text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Zack Guzman is the host of YFi PM as well as a reporter and chief reporter who covers entrepreneurship, startups and the latest news at Yahoo Finance. Follow him on Twitter @zGuz."data-reactid =" 26 ">Zack Guzman is the host of YFi PM as well as a reporter and chief reporter who covers entrepreneurship, startups and the latest news at Yahoo Finance. Follow him on Twitter @zGuz.
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