Continued Strong Revenue Growth, Executing on
Differentiation and Expansion Strategy
TSX:ACB
VANCOUVER, Nov. 9, 2017 /CNW/ - Aurora Cannabis Inc. (the
"Company" or "Aurora") (TSX: ACB) (OTCQX: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) today announced
its financial and operational results for the first quarter of
fiscal 2018, ended September 30,
2017.
Q1 2018 Financial and Operational Highlights
|
|
|
|
|
|
Q1 2018
|
Q4 2017
|
Change
|
Q1 2017
|
|
#
|
#
|
%
|
#
|
Active registered
patients (1)
|
19,280
|
16,400
|
17.6%
|
8,200
|
Grams sold
|
889,965
|
755,059
|
17.9%
|
435,720
|
Grams
produced(2)
|
1,009,585
|
1,164,683
|
-13.3%
|
354,975
|
|
|
|
|
|
(In CDN $000's
unless otherwise noted)
|
$
|
$
|
%
|
$
|
Revenues
|
8,249
|
5,936
|
39.0%
|
3,071
|
Average selling price
per gram
|
8.22
|
7.45
|
10.3%
|
6.32
|
Cash cost of sales
per gram (3)
|
1.92
|
2.09
|
-8.1%
|
-
|
Cash cost to produce
per gram (3)
|
1.73
|
1.91
|
-9.4%
|
-
|
Cash and cash
equivalents
|
127,915
|
159,796
|
|
23,194
|
|
|
(1)
|
As of the date
hereof, the Company has over 20,000 active registered
patients.
|
(2)
|
Grams produced in the
first quarter 2018 decreased due lower yielding strains being
harvested in the period compared to higher-yielding strains in
prior periods. Additionally, the Mountain View facility has reached
optimal production capacity in the quarter.
|
(3)
|
Cash cost of sales
per gram and cash cost to produce per gram are non-IFRS financial
measures that do not have a standardized meaning under IFRS and may
not be comparable to other companies. See definitions at the end of
this document.
|
Continued Strong Patient and Revenue Growth
- Recorded $8.2 million in
revenues, up 169% from Q1 2017 and up 39% sequentially from Q4
2017.
Revenues were generated as follows:
|
|
- Dried cannabis sold
in Canada
|
$4.7
million;
|
|
|
- Cannabis oils sold
in Canada
|
$1.4
million;
|
|
|
- Dried cannabis sold
in Germany
|
$1.2 million,
and
|
|
|
- Service
revenues
|
$0.9
million.
|
- Sold 889,965 gram equivalent of cannabis, up 18% from Q4 2017,
consisting of:
|
|
- Dried
cannabis:
|
802,250 grams,
and
|
|
|
- Cannabis
oils:
|
87,715 gram
equivalent.
|
- Added approximately 2,880 active registered patients during the
quarter, an 18% increase.
- Increased the prices for its dried cannabis strains from
$8.00 to $9.00 per gram (from $5.00 to $6.00 per
gram for low-income patients).
Capacity Expansion
- Continued to progress on schedule and on budget with the
construction of the 800,000 square foot Aurora Sky facility.
- The Company's subsidiary Pedanios passed the first stage of the
tender application process to become a licensed producer of medical
cannabis in Germany. Results of
the tender process are expected March
2018.
- The Company's Mountain View facility meets EU GMP certification
standards, required by the German government for export to that
market, and anticipates receiving the certification shortly.
- Received its export permit issued by Health Canada, as well as
provisional import status from the German Bundesopiumstelle
(Federal Narcotics Bureau), to import medical cannabis products
into Germany through Pedanios,
which currently distributes cannabis to 1,700 pharmacies.
Product Line Expansion
- Entered into a subscription and an option agreement with Hempco
and Hempco founders, which, upon exercise, would bring the
Company's total ownership interest in Hempco to over 50% on a fully
diluted basis.
- Completed the acquisition of BC Northern Lights and Urban
Cultivator, leading companies, respectively, in the production and
sale of proprietary systems for the safe, efficient and high-yield
indoor cultivation of cannabis, and in state-of-the-art indoor
gardening appliances for the cultivation of organic microgreens,
vegetables and herbs in home kitchens.
- Entered into a technical services agreement with Cann Group
Limited of Australia (19.9%
owned).
- Entered into an exclusive hardware supply agreement for the
Canadian market with Namaste Technologies Inc. ("Namaste") whereby
Aurora, through its website and mobile application, offers a
specially curated selection of industry-leading vaporizers sourced
through Namaste.
Financings
- Strengthened the balance sheet and liquidity position during
the first quarter of 2018 with $1.5
million in new financings via the exercise of warrants,
options and compensation options, as well as the conversion of
convertible notes into common shares.
- Approximately $96 million in
additional gross cash proceeds remain available from the future
exercise of warrants, stock options and compensation
options/warrants.
- The Company received 14,285,714 units and 77,540 units of
Radient on conversion of $2.0 million
in debentures and payment of final interest, respectively.
Management Team Expansion and Director Change
- Strengthened its senior management team to ensure the Company
has the leadership to further grow and build shareholder value
through execution of domestic and international objectives and
opportunities. In July and August
2017, the Company appointed VPs in Finance, Market
Development, and Production, as well as a Chief Cultivator.
- Graduated from the TSX Venture Exchange to the Toronto Stock
Exchange in July.
- Mr. Barry Fishman resigned from
the board of directors effective September
25, 2017.
Developments subsequent to the quarter
Continued Strong Patient and Revenue Growth
- Aurora registered over 3,500 patients since fiscal year end,
and as of the date of this release, the Company has surpassed
20,000 active registered patients.
- CanvasRx, which now operates 25 facilities nationwide, remains
the leading Canadian network of cannabis counseling and outreach
centres, with more than 31,900 registered patients. Over 8,900
medical doctors across Canada have
referred patients to CanvasRx or its affiliated medical
clinics.
Capacity Expansion
- The construction of the Aurora Sky facility at the Edmonton International Airport in Alberta is progressing well. At 800,000 square
feet, with modern technology and automation, Aurora Sky is expected
to produce over 100,000 kilograms annually and deliver significant
economies of scale for Aurora. Located on Edmonton International Airport land, with
access to ample power, Aurora Sky is ideally positioned for
increased domestic and international distribution. To date, over
400,000 square feet of structure has been erected, 80% of which has
its specialty glass installed, and many sub-systems have been
delivered to the site. The Company anticipates the first bays to be
completed and ready for planting before the end of calendar 2017,
with the first harvest in the first half of 2018, and full
completion of the construction project by mid-2018.
- Completed the construction upgrades at and received the
cultivation license from Health Canada for the Company's 40,000
square foot purpose-built indoor facility, Aurora Vie, in
Pointe-Claire, Quebec in six
months, reflecting the Company's agility, capabilities and speed of
execution. The Company anticipates shipping genetics shortly and
first harvest in Q1 of calendar 2018.
Expanding International Operations
- Exports to Germany in
September 2017 have passed the
country's lab testing requirements for quality control, and were
delivered to pharmacies in October
2017. Revenues from exports to Germany will be recorded beginning in Aurora's
Q2 2018. The Company continues to export ongoing, regular shipments
of dried cannabis flower from Canada to Germany.
Financings
- Completed a bought deal and a private placement for gross
proceeds of $75 million. Units in
both placements were priced at $3.00,
and consisted of one share and one common share purchase warrant
(priced at $4 for a period of three
years following closing).
- Pro-forma cash balance of $185
million providing substantial firepower to continue fueling
expansion strategy.
- Approximately $200 million in
additional gross cash proceeds remain available from the future
exercise of warrants, stock options and compensation
options/warrants.
Strategic Relationship with Radient Technologies
Inc.
- In November, Aurora and Radient announced that they had
finalized a Master Services Agreement, pursuant to which Radient
will perform certain services for Aurora using its MapTM
technology, as well as other technologies, for the development,
commercialization and supply of standardized cannabis extracts,
which may be derived from both cannabis and hemp. The agreement
initially covers services delivered in Canada, Australia, and the European Union, but may be
expanded to additional territories. Within the countries covered by
the agreement, Radient shall deliver its services under
preferential terms to Aurora. Radient has applied with Health
Canada to obtain Licensed Dealer and Licensed Producer status, and
is progressing well through the processes. Upon receipt of either
license, Radient will be able to commence production of cannabis
extracts. The Company expects that this agreement will enable
Aurora to accelerate the production of high-margin cannabis
derivatives under favourable terms.
- On June 5, 2017, Aurora and
Radient successfully completed their joint venture research
activity and confirmed the effectiveness of Radient's Map™
technology and associated continuous flow design for extracting
cannabinoids from dried cannabis.
Product Line Expansion
- Aurora announced the launch of its proprietary and
patent-pending live plant transporter, the Aurora
EnvoyTM ("Envoy"), which possesses several features that
promote the health, vigor and vegetative growth of live plant
cuttings during shipment, leading to increased transplant success
rates. The Envoy is anticipated to launch commercially in the
coming months and targets the home garden market.
Management Team Expansion
- On October 30, the Company
announced the appointment of Mr. Darryl
Vleeming as its Chief Information Officer, a newly created
position, reflecting Aurora's vision and commitment to
incorporating technological innovation across all corporate
functions.
Management commentary
"Aurora is performing brilliantly, with powerful domestic and
international revenue growth, record harvests, decreasing per-gram
production costs, industry-leading integration of technology, and
exceptional execution, which is testament to the outstanding team
we've assembled," said Terry Booth,
CEO. "In just six months, we acquired our next-generation Aurora
Vie facility, completed it with major upgrades, and received our
production license, nearly doubling our production capacity. At
Aurora Sky, we're building what by mid-2018 will be the world's
largest capacity production facility, and we're doing it at an
amazing pace. We've made smart acquisitions, established ourselves
as a partner of choice for strategic alliances, and expanded our
product offering to customers. I'm absolutely delighted with the
A-Team's performance.
Being exceptionally well capitalized, our balance sheet provides
the fuel needed to maintain a very high pace for footprint and
product offering expansion. The agility and execution track record
of our team translate into strong confidence in our ability to
create significant further shareholder value going forward as we
aggressively pursue domestic, international and product line
growth."
Financial review Q1 2018
A comprehensive discussion of Aurora's financials and operations
are provided in the Company's Management Discussion & Analysis
and Financial Statements to be filed with SEDAR today and will be
published on www.sedar.com.
Revenues
|
|
|
|
|
Sep 30,
2017
|
Jun 30,
2017
|
Sep 30,
2016
|
|
|
|
|
Net
Revenue
|
$
|
$
|
$
|
Canadian dried
cannabis
|
4,641
|
4,384
|
2,752
|
Canadian cannabis
oils
|
1,439
|
804
|
-
|
Germany dried
cannabis
|
1,235
|
439
|
-
|
Service
revenue
|
934
|
309
|
319
|
Total consolidated
net revenue
|
8,249
|
5,936
|
3,071
|
|
|
|
|
Grams
sold
|
#
|
#
|
#
|
Dried
cannabis
|
802,250
|
710,155
|
435,720
|
Cannabis oils (gram
equivalent)
|
87,715
|
44,904
|
-
|
Total consolidated
grams sold
|
889,965
|
755,059
|
435,720
|
|
|
|
|
Average net
selling price per gram sold
|
$
|
$
|
$
|
Dried
cannabis
|
7.32
|
6.79
|
6.32
|
Cannabis oils (per
gram equivalent)
|
16.41
|
17.91
|
-
|
Total consolidated
average selling price per gram sold
|
8.22
|
7.45
|
6.32
|
Revenues for the first quarter of fiscal 2018 were $8.2 million, up 168.6% from the same quarter in
the prior year and up 39.0% from the previous quarter (Q4
2017). Revenue growth was achieved across all of the
Company's product lines and territories, driven predominantly by
strong growth in Canadian cannabis oil sales, sales in Germany, and an increase in the average price
per gram of product sold. The average price of product sold
increased by 10.3% from $7.45 to
$8.22 per gram, attributable mainly
to strong increases in cannabis oils sold and sales through
Pedanios in Germany.
Total product sold for the period was 889,965 grams of dried
cannabis and cannabis oils, up 104% as compared to 435,720 grams of
dried cannabis in the first quarter of 2017, and up 17.9% from
755,059 grams in Q4 2017.
Cost of sales
Included in cost of sales for the three months ended
September 30, 2017 were the
unrealized gains on changes in fair value of biological assets of
$4.6 million, inventory expensed of
$2.0 million, and production costs of
$2.1 million.
The increase in production costs and inventory expensed to cost
of sales during the three months ended September 30, 2017 was largely attributable to
increases in production and production yields during the period.
The Company produced 1,009,585 grams of cannabis in the first
quarter 2017 compared to 354,975 grams produced in the same period
2016, an increase of 184% or 654,610 grams. The cultivation
of lower yielding but high demand strains during the quarter
resulted in a slightly lower grams of product harvested as compared
to Q4 2017 (1,164,683 grams).
Cash costs of sales per gram of dried cannabis produced during
the quarter continued to decline, coming in at $1.92 for Q1 2018, as compared to $2.09 for Q4 2017 and $3.89 for Q1 2017.
Gross Profit
Gross profit for the period under review increased to
$8.8 million, as compared to
$0.1 million for the three months
ended September 30, 2016,
attributable to the gain on the effect of changes in fair value of
biological assets in addition to an increase of $5.2 million in revenues, as the number of active
registered patients increased from 8,200 at September 30, 2016 to 19,280 at September 30, 2017. In addition, the Company
generated $1.2 million in revenues
through the sale of medical Cannabis by Pedanios in Germany.
Gross profit increased by 51% as compared to the previous
quarter, attributable to a 43% increase in the gain on the effect
of changes in fair value of biological assets and a 39% increase in
revenues, offset partially by a 22% increase in production costs
and inventory expensed to cost of sales as a result of scaling up
of production.
General & Administrative Costs
General and administration costs increased by $1.9 million to $3.0
million for the quarter as compared to Q1 2017, attributable
primarily to increases in corporate and general administrative
activities as the Company scaled up its business operations in
Canada and Germany, as well as other costs incurred
related to ongoing negotiations for additional financings and
investment opportunities. In the prior period, the Company began to
expand operations with the acquisition of CanvasRx and closed
equity and debt financings.
Sales & Marketing
Sales and marketing costs were $3.7
million in Q1 2018, relatively stable compared to Q4 2017,
and up $2.1 million as compared to Q1
2017, attributable mainly to increased service fees paid in
relation to CanvasRx, and higher selling and client care expenses
related to a substantial increase in registered patients and
resulting business volume.
Net Income
Net income before taxes of $4.7
million was recorded, as compared to a net loss before taxes
of $6.3 million for the same quarter
in the prior year. The increase was due predominantly due to higher
revenues, an unrealized gain on the change in fair value of
biological assets, as well as an unrealized gain on the
$2.0 million Radient Technologies
debenture Aurora invested in as part of its strategic
collaboration.
Unrealized gains on marketable securities primarily resulted in
in the Company recording a comprehensive net income of $14.5 million.
Liquidity and Capital Resources
Strengthened Capital Position
Aurora strengthened its balance sheet and liquidity position
during the first quarter of 2018 with $1.5
million in new financings as follows:
- The Company raised $1.30 million
through the exercise of warrants, options and compensation
options.
- The Company also converted approximately $0.25 million of convertible notes into common
shares.
Approximately $96 million in
additional gross cash proceeds remain available from the future
exercise of warrants, stock options and compensation
options/warrants.
Cash Position, Cash Flows, and Working Capital
Net cash and cash equivalents on hand decreased from
$159.8 million as at June 30, 2017, to $127.9
million as at September 30,
2017, due mainly by net cash used for operations of
$5.0 million, investments and capital
expenditures of $28.4 million, and
adjusted by $0.2 million from the
effect of foreign exchange on cash flows, offset partially by cash
flows of $1.3 million from financing
activities.
Subsequent to the quarter, the Company raised $75 million through a concurrent $69 million bought deal offering and a
$6 million private placement of
units, with each unit priced at $3 in
both placements, consisting of one common share and one common
share purchase warrant. Each warrant, exercisable for three
years following the closing date of the placement, gives the right
to purchase one common share at $4
per share. On a pro-forma basis following the closing of the
concurrent placements, the Company had a cash balance of
approximately $185 million.
Working capital as of September 30,
2017 was $169.7 million, as
compared to $170.1 million at
June 30, 2017.
The Company anticipates that it has sufficient funds to cover
future operating cash flows, to complete the construction of its
Aurora Sky facility and to execute its growth strategy for domestic
and international expansion based on the current capital resources
available.
Outstanding Share Data
As of the date of the MD&A, the Company had the following
securities issued and outstanding:
|
|
Securities
|
November 8,
2017
|
|
#
|
Issued and
outstanding shares
|
375,421,933
|
Restricted stock
units
|
2,127,128
|
Options
|
18,510,070
|
Warrants
|
47,427,237
|
Compensation
warrants
|
699,468
|
Convertible
debentures
|
24,644,962
|
Outlook
While production capacity at our Mountain View facility in
Cremona is nearly fully optimized,
we anticipate further expansion from the first calendar quarter of
2018 onwards with first harvest at Aurora Vie, followed in
subsequent quarters by harvest from the first completed bays at
Aurora Sky. Until such time, revenue growth will largely be a
function of increased shipments to our European subsidiary,
Pedanios, which will start contributing from Q2 onwards, growth of
cannabis oil production and sales, increased product availability
through strategic wholesale supply relationships, and consolidation
of our recent acquisitions BC Northern Lights and Urban
Cultivator.
Aurora's business strategy is to continue accelerating its
penetration of the Canadian medical cannabis market, leverage its
Health Canada sales license for derivative products (cannabis
oils), commence cultivation at its Aurora Vie facility in
Quebec, and complete the Aurora
Sky facility in Alberta for
additional production capacity. Upgrades are also being
undertaken to the Company's first facility in Cremona, Alberta, to further enhance
production.
In preparation for the anticipated mid-2018 Canadian federal
legalization of adult consumer use of cannabis, the Company is
building organizational and production capacity to capture a share
of the adult use market.
Innovation and integration of technology are key components in
Aurora's growth strategy. Going forward, Aurora will continue
to leverage new technologies, aimed at:
- Improving the customer experience, e.g. via further
enhancements to Aurora's unique mobile application - the world's
only mobile app for ordering legal medical cannabis;
- Delivering industry-leading per square foot production
capacity, while reducing operational expenses at its production
facilities, and
- Substantially increasing the production of cannabis
concentrates through the Company's collaboration with Radient.
The Company is also focusing on delivering further product
differentiation, through Aurora's intended strategic investment in
Hempco, its partnership with Namaste Technologies, and the
acquisition of homegrow and urban garden companies BC Northern
Lights and Urban Cultivator.
Finally, the Company is executing a significant international
expansion as evidenced by the lead participation in the
May 2017 Cann Group IPO in
Australia, and the May 2017 acquisition of Pedanios, Germany's largest distributor of medical
cannabis. The Company is actively pursuing further international
opportunities.
Non-IFRS Financial Measures
The Company has included the following non-IFRS performance
measures in this press release:
- Cash cost of sales per gram of dried cannabis is calculated by
taking the total IFRS cost of sales and removing the effect of
changes in fair value of biological assets, non-cash production
costs, oil conversion costs, cost of sales from service revenue and
purchases from other Licensed Producers, all divided by the total
number of grams of dried cannabis produced in the period. Cash cost
to produce dried cannabis is calculated by further removing
packaging costs.
About Aurora
Aurora's wholly-owned subsidiary, Aurora Cannabis Enterprises
Inc., is a licensed producer of medical cannabis pursuant to Health
Canada's Access to Cannabis for Medical Purposes Regulations
("ACMPR"). The Company operates a 55,200 square foot,
state-of-the-art production facility in Mountain View County,
Alberta, known as "Aurora
Mountain", a second 40,000 square foot high-technology production
facility known as "Aurora Vie" in Pointe-Claire, Quebec on Montreal's West Island, and is currently
constructing an 800,000 square foot production facility, known as
"Aurora Sky", at the Edmonton
International Airport.
In addition, the Company holds approximately 9.6% of the issued
shares (12.9% on a fully-diluted basis) in leading extraction
technology company Radient Technologies Inc., based in Edmonton, and is in the process of completing
an investment in Edmonton-based
Hempco Food and Fiber for an ownership stake of up to 50.1%.
Furthermore, Aurora is the cornerstone investor with a 19.9% stake
in Cann Group Limited, the first Australian company licensed to
conduct research on and cultivate medical cannabis. Aurora also
owns Pedanios, a leading wholesale importer, exporter, and
distributor of medical cannabis in the European Union, based in
Germany. The Company offers
further differentiation through its acquisition of BC Northern
Lights Ltd. and Urban Cultivator Inc., industry leaders,
respectively, in the production and sale of proprietary systems for
the safe, efficient and high-yield indoor cultivation of cannabis,
and in state-of-the-art indoor gardening appliances for the
cultivation of organic microgreens, vegetables and herbs in home
and professional kitchens. Aurora's common shares trade on the TSX
under the symbol "ACB".
On behalf of the Board of Directors,
AURORA CANNABIS INC.
Terry Booth
CEO
This news release includes statements containing certain
"forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"). Forward-looking
statements are frequently characterized by words such as "plan",
"continue", "expect", "project", "intend", "believe", "anticipate",
"estimate", "may", "will", "potential", "proposed" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. These statements are only predictions.
Various assumptions were used in drawing the conclusions or making
the projections contained in the forward-looking statements
throughout this news release. Forward-looking statements are based
on the opinions and estimates of management at the date the
statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. The Company is under no obligation, and
expressly disclaims any intention or obligation, to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law.
Neither TSX nor its Regulation Services Provider (as that
term is defined in the policies of Toronto Stock Exchange) accepts
responsibility for the adequacy or accuracy of this
release.
AURORA CANNABIS
INC.
|
|
|
Condensed Interim
Consolidated Statements of Financial Position
|
|
|
September 30, 2017
and June 30, 2016
|
|
|
(Unaudited – In
thousands of Canadian dollars)
|
|
|
|
|
|
|
September 30,
2017
|
June 30,
2017
|
|
$
|
$
|
Assets
|
|
|
Current
|
|
|
|
Cash and cash
equivalents
|
127,915
|
159,796
|
|
Accounts
receivable
|
3,701
|
2,312
|
|
Marketable
securities
|
34,760
|
14,845
|
|
Inventory
|
11,653
|
7,703
|
|
Biological
assets
|
6,083
|
4,088
|
|
Promissory notes
receivable
|
5,250
|
1,222
|
|
Loans
receivable
|
2,132
|
2,096
|
|
Prepaid and other
current assets
|
1,742
|
1,544
|
|
193,236
|
193,606
|
|
|
|
Property, plant and
equipment
|
71,385
|
45,523
|
Convertible
debenture
|
-
|
11,071
|
Derivative
|
4,892
|
292
|
Investment in a joint
venture
|
-
|
-
|
Intangible
assets
|
30,670
|
31,087
|
Goodwill
|
47,651
|
41,100
|
|
|
|
|
347,834
|
322,679
|
|
|
|
Liabilities
|
|
|
Current
|
|
|
|
Accounts payable and
accrued liabilities
|
12,015
|
8,753
|
|
Deferred
revenue
|
1,548
|
1,421
|
|
Finance
lease
|
71
|
69
|
|
Contingent
consideration payable
|
9,928
|
13,221
|
|
23,562
|
23,464
|
|
|
|
Finance
lease
|
263
|
282
|
Convertible
notes
|
66,581
|
63,536
|
Deferred gain on
convertible debenture
|
-
|
10,206
|
Deferred gain on
derivative
|
3,856
|
321
|
Deferred tax
liability
|
8,656
|
5,937
|
|
102,918
|
103,746
|
|
|
|
Shareholders'
equity
|
|
|
|
Share
capital
|
230,432
|
221,447
|
|
Reserves
|
39,108
|
25,912
|
|
Deficit
|
(24,624)
|
(28,426)
|
|
244,916
|
218,933
|
|
|
|
|
347,834
|
322,679
|
AURORA CANNABIS
INC.
|
|
|
Condensed Interim
Consolidated Statements of Comprehensive Loss
|
|
|
Three months ended
September 30, 2017 and 2016
|
|
|
(Unaudited – In
thousands of Canadian dollars, except share and per share
amounts)
|
|
|
|
|
|
|
2017
|
2016
|
|
$
|
$
|
Revenue
|
8,249
|
3,071
|
|
|
|
Unrealized (gain)
loss on changes in fair value of biological assets
|
(4,611)
|
1,262
|
Inventory expensed to
cost of sales
|
1,973
|
482
|
Production
costs
|
2,077
|
1,241
|
Cost of sales
(recovery)
|
(561)
|
2,985
|
|
|
|
Gross
profit
|
8,810
|
86
|
|
|
|
Expenses
|
|
|
|
General and
administration
|
2,993
|
1,047
|
|
Sales and
marketing
|
3,668
|
1,570
|
|
Research and
development
|
107
|
40
|
|
Acquisition and
project evaluation costs
|
340
|
165
|
|
Depreciation and
amortization
|
634
|
159
|
|
Share-based
payments
|
2,486
|
380
|
|
10,228
|
3,361
|
|
|
|
Loss from
operations
|
(1,418)
|
(3,275)
|
|
|
|
Other income
(expenses)
|
|
|
Interest and other
income
|
590
|
28
|
|
Finance and other
costs
|
(2,016)
|
(3,040)
|
|
Foreign
exchange
|
(247)
|
-
|
|
Unrealized gain on
debenture
|
6,937
|
-
|
|
Unrealized gain on
derivative
|
817
|
-
|
|
6,081
|
(3,012)
|
|
|
|
Income (loss) before
income taxes
|
4,663
|
(6,287)
|
|
|
|
Income tax recovery
(expense)
|
|
|
|
Current
|
-
|
8
|
|
Deferred,
net
|
(1,103)
|
666
|
|
(1,103)
|
674
|
|
|
|
Net income
(loss)
|
3,560
|
(5,613)
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
Deferred
tax
|
(1,632)
|
-
|
|
Unrealized gain on
marketable securities
|
12,551
|
-
|
|
Foreign currency
translation
|
(4)
|
-
|
|
|
|
Comprehensive income
(loss)
|
14,475
|
(5,613)
|
|
|
|
Earnings (loss) per
share
|
|
|
|
Basic
|
0.01
|
(0.03)
|
|
Diluted
|
0.01
|
(0.03)
|
|
|
|
Weighted average
number of shares outstanding
|
|
|
|
Basic
|
368,631,600
|
183,610,213
|
|
Diluted
|
376,199,780
|
183,610,213
|
AURORA CANNABIS
INC.
|
|
|
Condensed Interim
Consolidated Statements of Cash Flows
|
|
|
Three months ended
September 30, 2017 and 2016
|
|
|
(Unaudited – In
thousands of Canadian dollars)
|
|
|
|
|
|
|
2017
|
2016
|
|
$
|
$
|
Cash provided by
(used in)
|
|
|
|
Operating
activities
|
|
|
|
|
Net income (loss) for
the period
|
3,560
|
(5,613)
|
|
|
Adjustments for
non-cash items
|
|
|
|
|
|
Change in fair value
of biological assets
|
(3,881)
|
1,262
|
|
|
|
Depreciation of fixed
assets
|
359
|
159
|
|
|
|
Amortization of
intangible assets
|
417
|
-
|
|
|
|
Share-based
payments
|
2,486
|
380
|
|
|
|
Unrealized gain on
debentures
|
(6,937)
|
-
|
|
|
|
Unrealized gain on
derivatives
|
(817)
|
-
|
|
|
|
Accrued interest and
accretion expense
|
1,947
|
920
|
|
|
|
Financing
fees
|
-
|
1,578
|
|
|
|
Interest and other
income
|
(59)
|
-
|
|
|
|
Deferred tax
recovery
|
1,103
|
(666)
|
|
|
Changes in non-cash
working capital
|
|
|
|
|
|
GST
recoverable
|
(1,218)
|
(13)
|
|
|
|
Accounts
receivable
|
224
|
(389)
|
|
|
|
Inventory
|
(1,173)
|
(203)
|
|
|
|
Prepaids and other
current assets
|
(143)
|
494
|
|
|
|
Accounts payable and
accrued liabilities
|
(829)
|
(1,264)
|
|
|
|
Contingent
consideration payable
|
(32)
|
-
|
|
|
|
Deferred
revenue
|
19
|
480
|
|
(4,974)
|
(2,875)
|
|
|
|
|
Investing
activities
|
|
|
Promissory notes
receivable
|
(4,736)
|
-
|
|
|
Purchase of property,
plant and equipment
|
(21,061)
|
(630)
|
|
|
Acquisition of
businesses, net of cash acquired
|
(2,635)
|
(3,418)
|
|
(28,432)
|
(4,048)
|
|
|
|
|
Financing
activities
|
|
|
Finance
lease
|
(17)
|
-
|
|
|
Proceeds of
convertible notes
|
-
|
15,000
|
|
|
Proceeds (repayment)
of short term loans
|
-
|
(4,549)
|
|
|
Proceeds (repayment)
of long term loans
|
-
|
(4,000)
|
|
|
Financing
fees
|
-
|
(610)
|
|
|
Shares issued for
cash, net of share issue costs
|
1,296
|
24,017
|
|
1,279
|
29,858
|
|
|
|
|
Effect of foreign
exchange on cash and cash equivalents
|
246
|
-
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
(31,881)
|
22,935
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
159,796
|
259
|
|
Cash and cash
equivalents, end of period
|
127,915
|
23,194
|
|
|
|
|
Supplementary
information:
|
|
|
Property, plant and
equipment in accounts payable
|
3,765
|
280
|
|
|
Depreciation in
production costs
|
142
|
68
|
SOURCE Aurora Cannabis Inc.