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Aphria Inc. (APH.TO) (APHQF) received a license amendment from Health Canada that provides the company with additional production space of 57,000 square feet, as part of its Part II expansion. This will more than triple Aphria's production capacity of medical cannabis from 2,600 kgs annually to 8,000 kgs annually. The first crop cultivated and produced at the Part II expansion will be available for sale in the middle of August. Aphria CEO Vic Neufeld said, “The license amendment marks the completion of the second part of Aphria's four-part expansion plan, set to be completed by July 2018. This will allow us to continue to produce high-quality cannabis at one of the lowest costs in the industry. The expansion will propel Aphria's greenhouse footprint.
Aurora Cannabis (ACB.V: TSX Venture) (ACBFF) announced its third quarter financial and operational results for the quarter that ended on March 31st.
Operational Highlights: Received a cannabis oil sales license in January. Strengthened its balance sheet with in $127.4 million in new funds (from exercising warrants and options, selling convertible debentures and selling units in a private placement.) Achieved new sales milestones (sales pace for the quarter is $1.5+ million per month). Reached a new record for sales in March with over 250 kilograms sold and $2 million in gross revenue generated. Launched second generation of its mobile application. Started trading on the OTCQX. Signed a deal with Radient Technologies for a joint development and commercialization of cannabinoid extracts. They also entered into a joint venture research agreement where Radient and Aurora are working to validate the effectiveness of Radient's MAP technology for cannabis extraction. Invested approximately $3.3 million in Radient's convertible debenture and private placement financings (owns 18%). Appointed Neil Belot as Chief Global Business Development Officer. Appointed Dr. Barry Waisglass as Medical Director. During the quarter, Aurora sold 653,008 grams of cannabis, a 21% increase over last quarter. When compared to the prior quarter, revenue increased significantly which was due to higher patient numbers and an increase in revenue per patient. Aurora said it pro-actively managed new patient registrations in the third quarter to balance demand with its increasing production capacity, and to protect its reputation as a reliable supplier of premium products. As more product becomes available, Aurora expects to see new patient registration increase and see higher patient acquisition rates. General and administration costs were $2.0 million and primarily related to an increase in corporate and general administrative activities as business operations have scaled up. This expense also included fees related to its financings and costs associated with ongoing negotiations for financings, potential acquisition and investment opportunities.
Sales and marketing costs increased due to higher consulting fees, selling costs and wages.