Core Insights - Aurora Cannabis Inc. reaffirms its commitment to achieving positive free cash flow in the current calendar year and reports its fifth consecutive quarter of positive adjusted EBITDA [1][3] - The company has become the largest global medical cannabis company in nationally legal markets following the acquisition of MedReleaf Australia, which is expected to enhance its revenue and EBITDA [2][3] - Aurora's international medical net revenue grew by 41% year-over-year, indicating strong demand and market expansion [2][5] Financial Performance - Total net revenue for Q3 2024 was $64.4 million, a 5% increase from $61.1 million in the prior year period, driven by growth in the global medical cannabis business [4][12] - Medical cannabis net revenue reached $45.1 million, a 16% increase from the prior year quarter, contributing 70% of total consolidated net revenue [5][12] - Adjusted gross margin before fair value adjustments improved to 50% in Q3 2024, up from 46% in the prior year quarter [4][12] Operational Highlights - The company reported a cash position of over $200 million as of the quarter close, with remaining convertible debt of $7.3 million expected to be fully repaid in February 2024 [1][11] - Adjusted SG&A expenses were $27.5 million in Q3 2024, reflecting effective cost control measures [8][12] - The average net selling price of dried cannabis was $4.77, a slight increase from $4.71 in the prior year [13][12] Future Expectations - For fiscal Q4 2024, the company anticipates steady revenue from Canadian medical and consumer segments, with modest growth expected in Europe and Australia [10][12] - Continued positive adjusted EBITDA is expected in Q4 2024, supported by revenue increases and ongoing cost control [10][12] - The company aims to achieve $40 million in annualized cost efficiencies by the end of the fiscal year [3][12]

Core Viewpoint - Aurora Cannabis Inc. has acquired the remaining 90% equity interest in MedReleaf Australia for an enterprise value of AUD$50 million, positioning itself as the largest global medical cannabis company in legally operating markets [2][5][9]. Company Overview - Aurora Cannabis is a leading global medical cannabis company based in Canada, with a focus on both medical and consumer markets [10]. - The company operates under various brands, including MedReleaf, CanniMed, and Aurora, and is committed to high-quality cannabis products [10]. Transaction Details - The acquisition of MedReleaf Australia involved a cash payment of AUD$9.45 million and the issuance of approximately 69.5 million common shares of Aurora [2][9]. - MedReleaf Australia is a significant player in the Australian medical cannabis market, which is valued at approximately AUD$400 million [2][3]. Market Position and Growth - The Australian medical cannabis market is rapidly growing, characterized by a clinician-led distribution model that aligns with Aurora's operational strategies in other markets like Germany [3][7]. - MedReleaf Australia generated trailing 12-month net revenue of approximately AUD$40 million as of December 31, 2023, and was adjusted EBITDA positive [8]. Strategic Rationale - The acquisition strengthens Aurora's presence in Australia, enhancing its global cannabis leadership and aligning with its strategy to invest in sustainable growth markets [5][7]. - The transaction is expected to improve revenue contributions and gross margins, further aligning Aurora's Australian operations with its profitable international markets [7][8]. Future Outlook - The transaction is anticipated to be immediately accretive to Adjusted EBITDA and will support Aurora's goal of achieving positive free cash flow in calendar 2024 [2][5][8].

The Leading Cannabis ETFs to Consider in 2024Cannabis ETFs are garnering attention in 2024 as the industry shows promising growth. Key players like MJ, MSOS, and CNBS dominate this sector. These ETFs offer diversified exposure to cannabis-related stocks. This includes companies involved in cultivation, production, and retail. The U.S. cannabis industry has seen remarkable growth. Statistics reveal a projected market size of over $30 billion by 2025. This growth is fueled by expanding legalization and increa ...

The last decade saw a trend for destigmatization of the use of psychoactive substances accompanied by a wave of legislation either legalizing or decriminalizing mostly marijuana-based products – both for medical and recreational use.These developments brought the creation of numerous firms focusing on cannabis products, and many of them have become popular publicly traded companies and exciting investment opportunities.Now, a new Food and Drug Administration (FDA) report stating that Marijuana is eligible f ...

Cannabis stocks are notching their second day of gains after the Drug Enforcement Administration confirmed it’s reviewing an August recommendation from the U.S. Department of Health and Human Services (HHS) to change the classification of marijuana to Schedule III from Schedule I under the Controlled Substances Act. In a letter to Rep. Earl Blumenauer, Democrat of Oregon, the DEA said it has “final authority” to make any rescheduling decisions. The Schedule III classification would potentially eliminate th ...

Aurora Cannabis (ACB -3.01%) stock capped off yet another bad year in 2023, with its shares falling by more than 45%. But this isn't new for investors; Aurora has consistently been a bad buy. This marks the sixth consecutive year that Aurora's stock has fallen by at least 30%. It's a painful but important reminder to investors that just because a stock has declined significantly doesn't mean it's due for a recovery -- or can't fall still more. For Aurora to turn things around for investors, it needs to be a ...

I N V E S T O R P R E S E N T A T I O N Disclaimer ...

Aurora Cannabis Inc. (NASDAQ:ACB) Q2 2024 Earnings Conference Call November 9, 2023 5:00 PM ET Company Participants Ananth Krishnan - Vice President, Corporate Development and Strategy Miguel Martin - Chief Executive Officer Glen Ibbott - Chief Financial Officer Conference Call Participants Vivien Azer - TD Cowen Michael Lavery - Piper Sandler John Zamparo - CIBC Doug Miehm - RBC Capital Markets Emily Larsen - BMO Capital Markets Eric Livshits - ATB Capital Markets Operator Good day, ladies and gentlemen. A ...

AURORA CANNABIS INC. Condensed Consolidated Interim Financial Statements (Unaudited) For the three and six months ended September 30, 2023 and 2022 (in Canadian Dollars) Condensed Consolidated Interim Statements of Financial Position 3 Condensed Consolidated Interim Statements of Loss and Comprehensive Loss 4 Condensed Consolidated Interim Statements of Changes in Equity 6 Condensed Consolidated Interim Statements of Cash Flows 8 Notes to the Condensed Consolidated Interim Financial Statements Note 1 Nature ...

Financial Data and Key Metrics Changes - Aurora Cannabis reported a net revenue of $75.1 million for Q1 fiscal 2024, up from $50.1 million in the same period last year, marking a significant growth across all business units [18][19] - The company achieved the highest adjusted EBITDA of $2.2 million in three years, demonstrating a positive trend in financial performance [18][28] - Adjusted gross margin for medical cannabis was 61%, consistent with the target range but down from 67% a year ago due to a higher volume of lower-margin international bulk exports [20] Business Line Data and Key Metrics Changes - The global medical cannabis business generated $41.6 million in revenue, with international medical revenue reaching $16.2 million, up 40% year-over-year [18][20] - Consumer cannabis net revenue was $13.2 million, reflecting a 5% increase from the previous year, despite a partial quarter of sales for a popular product [21] - Bevo, the plant propagation business, contributed $19.9 million in net revenue, an 85% sequential increase, marking its best quarter to date [22] Market Data and Key Metrics Changes - The Australian medical cannabis market is estimated to be about the same size as the Canadian medical market, around $400 million in annual revenue, with expectations for rapid growth [32][50] - Aurora's leadership in the medical cannabis market is supported by strong gross margins and market share positions in Canada, Europe, and Australia [28] Company Strategy and Development Direction - The company is focused on diversifying revenue streams beyond cannabis, with significant investments in plant propagation through Bevo, which is expected to double its revenue and cash flow in the next two to three years [9][10] - Aurora plans to introduce approximately 75 new products to the Canadian market in the coming quarters, aiming to enhance its product assortment and patient experience [12][28] - The company is committed to achieving further cost efficiencies, targeting an additional $40 million in annual savings during fiscal 2024 [16][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating positive free cash flow in calendar 2024, supported by improved operational efficiencies and a strong product pipeline [24][28] - The company is optimistic about the potential regulatory changes in Europe, particularly in Germany and France, which could significantly expand the medical cannabis market [15][50] - Management highlighted the importance of maintaining high-quality standards and EU GMP certification as a competitive advantage in international markets [34] Other Important Information - Over the past three years, Aurora has reduced its convertible debt from $531 million to approximately $63 million, showcasing prudent fiscal management [11] - The company has closed less efficient operations, including the Aurora Nordic facility and the US CBD business, which is expected to positively impact cash flows and margins [24] Q&A Session Summary Question: Growth in Australia and its impact on international medical cannabis segment gross margin - Management noted that the Australian market is growing rapidly, but margins may be lower compared to other markets due to less integration [32][33] Question: Magnitude of margin improvements in medical cannabis - Management indicated that margin improvements will be driven by transitioning services to Canadian facilities, which are more efficient [36][39] Question: Bevo's revenue comparison to prior owners - Management stated that Bevo's revenue has increased significantly since acquisition, with current run rates in the $45 million to $50 million range [40] Question: Future SG&A spending - Management confirmed the target of keeping SG&A below $30 million while continuing to invest in R&D and innovation [43][46] Question: Legalization of recreational cannabis in Australia - Management expressed that while there are discussions around legalization, it is not actionable at the moment, and they see significant upside in the medical market [48][50] Question: Sustainability of growth in Australia compared to Israel - Management highlighted differences in market size and regulatory stability, expressing more optimism for sustainable growth in Australia [53][56]