Canadian cannabis firm Aurora Cannabis (TSX:ACB) (NYSE:ACB) has been in all sorts of trouble for the better part of the past months. Considering the fact that it is one of the biggest cannabis firms in the industry, there was a lot of anticipation around its fiscal third-quarter results.
The results were released on Thursday, and Aurora reported a loss of $137.4 million. While that is a significant loss, it should be noted that in the prior three months, the company had posted a loss of as much as $1.3 billion. Aurora’s sales rose to $78.4 million for the quarter, which reflects a rise of as much as 19%, and it beat analysts’ estimates as well.
On the other hand, the adjusted EBITDA for the quarter came in at a negative $38.3 million. The high volume of debts on its books has been a major concern for quite some time among investors.
Additionally, the continued dilution of shares in order to raise fresh capital has also been harmful to the Aurora stock. The stock has lost as much as 93% over the course of the past 12 months, and in order to arrest the slide, the company recently completed a 12 to 1 reverse stock split.
It was a move that was aimed at ensuring that the stock traded above $1 and remained listed on the New York Stock Exchange. The company stated that while the coronavirus crisis did not cause any particular disruption to its business, it could have a negative impact on Aurora’s activities in the next quarter.
The company also announced that it sold as much as 12729 kilos of cannabis in the quarter, and that reflects a significant rise from the 9501 kilos that it sold in the same quarter a year ago. Cannabis sales amounted to $69.1 million for the quarter, and that again reflected a healthy year on year rise of 32%. Aurora also pointed out that it aims to turn a profit by the end of 2020.