Core Points - Aurora Cannabis Inc. has scheduled a conference call to discuss its third quarter 2025 financial results on February 5, 2025, at 8:00 a.m. Eastern Time [1][2] - The company will report its financial results before the market opens on the same day [1] - Miguel Martin, Executive Chairman and CEO, and Simona King, CFO, will host the conference call [2] Company Overview - Aurora Cannabis is a leading global medical cannabis company based in Edmonton, Alberta, serving medical and consumer markets across Canada, Europe, Australia, and South America [3] - The company offers a diverse portfolio of adult-use brands, including Drift, San Rafael '71, Daily Special, Tasty's, Being, and Greybeard, as well as medical cannabis brands like MedReleaf, CanniMed, Aurora, and Whistler Medical Marijuana Co [3] - Aurora holds a controlling interest in Bevo Farms Ltd., a major supplier of propagated agricultural plants in North America [3] - The company emphasizes science and innovation, focusing on high-quality cannabis products to lead in the medical, wellness, and adult recreational markets [3][4]

Core Viewpoint - Aurora Cannabis Inc. is launching an internship program at its EU-GMP facility in Leuna, Germany, aimed at cultivating future leaders in the medical cannabis industry through hands-on experience and collaboration with industry experts [1][2]. Group 1: Internship Program Details - The internship program will last six months and will cover all phases of medical cannabis cultivation, including cloning, care, harvesting, packaging, and cleaning, along with participation in special research and development projects [3]. - The program is in partnership with Erfurt University of Applied Sciences, specifically targeting students from the Horticultural Crop Production course [1][2]. Group 2: Company Position and Commitment - Aurora Cannabis is recognized as the largest global medical cannabis company operating in nationally legal markets, maintaining its leadership through expertise in both product development and talent cultivation [4]. - The company emphasizes its commitment to nurturing talent and fostering a collaborative environment for interns, ensuring they gain a solid foundation for their professional journeys [2]. Group 3: Facility and Standards - The Leuna facility is one of the few sites in Germany authorized to grow medical cannabis and adheres to the highest operational standards, utilizing innovative and sustainable cultivation methods [2]. - This state-of-the-art indoor facility is deemed an ideal learning environment for students to understand best practices in medical cannabis cultivation [2]. Group 4: Company Overview - Aurora Cannabis serves both medical and consumer markets across Canada, Europe, Australia, and South America, with a diverse brand portfolio that includes both adult-use and medical cannabis brands [5]. - The company is headquartered in Edmonton, Alberta, and is dedicated to improving lives through cannabis, driven by science and innovation [5].

Core Viewpoint - Aurora Cannabis Inc. has announced a distribution partnership with The Entourage Effect and MedReleaf Australia to enhance access to premium medical cannabis products for Australian patients [1][2]. Group 1: Partnership Details - The collaboration will allow The Entourage Effect to serve as a wholesaler for MedReleaf Australia's product portfolio, which includes brands such as CraftPlant, Aurora, and IndiMed [1]. - This partnership aims to expand the distribution network in Australia, reinforcing Aurora's commitment to patient care and access to high-quality medical cannabis [2]. Group 2: Company Commitment - Aurora Cannabis is dedicated to supporting the growth of the Australian medical cannabis market and ensuring that patients have access to its products [2]. - MedReleaf Australia, a subsidiary of Aurora, adheres to TGA-GMP standards, emphasizing quality and consistency in its offerings [2]. Group 3: Company Overview - Aurora Cannabis operates in multiple markets, including Canada, Europe, Australia, and South America, with a diverse portfolio of both medical and consumer cannabis brands [4]. - The company is recognized for its focus on science and innovation, aiming to lead in the medical, wellness, and adult recreational cannabis sectors [4].

Industry Overview - The cannabis industry is currently facing challenges due to political dynamics, with both Republicans and Democrats having differing approaches to federal reform [1][2] - Despite these challenges, the industry has generated significant revenue and is expected to continue evolving as politicians seek a compromise [2][3] Company Highlights - **SNDL Inc.**: Engages in the production, distribution, and sale of cannabis products in Canada, recently renewing its share repurchase program to buy back up to C$100 million of its outstanding shares [4][5] - **Aurora Cannabis Inc.**: Reported record Adjusted EBITDA of $10.1 million, a 210% year-over-year increase, and quarterly net revenue of $81.1 million, up 29% year-over-year, with a strong balance sheet of approximately $152 million in cash and no debt [7][8] - **High Tide Inc.**: Operates in the cannabis retail sector across Canada and internationally, recently closing a $15 million subordinated debt facility [9]

Core Insights - Aurora Cannabis Inc. reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of a loss of $0.22 per share, and showing improvement from a loss of $0.50 per share a year ago [1] - The company achieved revenues of $59.47 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 11.97% and increasing from $52.54 million year-over-year [2] - Aurora Cannabis shares have increased approximately 28.3% since the beginning of the year, outperforming the S&P 500's gain of 21.2% [3] Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - The recent earnings surprise of 118.18% indicates strong performance compared to expectations [1] - The previous quarter also showed a positive surprise, with an actual loss of $0.11 against an expected loss of $0.35, resulting in a surprise of 68.57% [1] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $55.9 million, and for the current fiscal year, it is -$0.37 on revenues of $230.55 million [7] - The estimate revisions trend for Aurora Cannabis is mixed, leading to a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3][4] Industry Context - The Medical - Products industry, to which Aurora Cannabis belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics - Net revenue grew 29% YoY to $81.1 million, driven by record global medical cannabis revenue of $61.3 million, which increased 41% YoY [4][14] - Adjusted EBITDA grew 210% YoY to $10.1 million, marking the eighth consecutive quarter of positive adjusted EBITDA [14] - Adjusted gross margin improved to 54%, up 300 basis points YoY, with adjusted gross profit reaching a record $42.6 million [14] - Cash and cash equivalents stood at $152 million, with no debt in the cannabis business [14][18] Business Line Performance - Global Medical Cannabis revenue grew 41% YoY, contributing 76% of total revenue and 98% of adjusted gross profit [6][15] - International medical cannabis revenue surged 93% YoY, now representing 57% of total global medical cannabis revenue [4][15] - Canadian medical cannabis revenue grew 3% YoY, maintaining the company's dominant leadership position [6][15] - Consumer cannabis revenue declined to $10.4 million from $12 million YoY, as the company prioritized high-margin international medical sales [16] - Plant propagation revenue increased to $8.6 million, up from $7.2 million YoY, driven by organic growth and expanded product offerings [16] Market Performance - Australia: The company is the second-largest player in the Australian medical cannabis market, which is valued at AUD 400 million annually. Revenue growth was driven by the full contribution from MedReleaf Australia and an expanded product portfolio [8][9] - Germany: The company holds the third-largest market share for flower and the second-largest for insured patients. Growth was fueled by cannabis de-scheduling and increased patient registrations [10][11] - Poland: Revenue rebounded in Q2 after Q1 import permit delays, driven by strong demand for high-quality medical cannabis [12] - UK: Record revenue growth was achieved through innovation and expanded distribution channels [12] Strategy and Industry Competition - The company's strategy focuses on capitalizing on global medical cannabis opportunities, leveraging operational excellence, and maintaining a strong balance sheet [3] - The company's EU GMP and TGA GMP-certified facilities provide a competitive advantage in meeting high regulatory standards [8][10] - The company is well-positioned to benefit from the expanding acceptance of medical cannabis in Europe, particularly in Germany, where it has a production facility and an enhanced cultivation license [11][12] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the future of medical cannabis, citing increasing patient access globally and the company's leadership position [21] - The company expects continued growth in global medical cannabis revenue, particularly in Europe and Australia, and anticipates positive free cash flow in Q3 [19][20] - Management highlighted the importance of maintaining a strong balance sheet and operational excellence to support sustainable financial performance [13][21] Other Important Information - The company launched CBD lozenges in collaboration with Vectura Fertin Pharma to capitalize on increased interest in medical cannabis as part of healthcare options [7] - The Lorne facility in Germany received permission to expand cultivation under the new Medical Cannabis Act, further strengthening the company's position in the European market [11] Q&A Session Summary Question: Sustainability of global medical cannabis revenue growth [23] - Management believes the growth is sustainable, supported by a diversified model across multiple markets and high margins. The full contribution from MedReleaf Australia also boosted Q2 results [24][25] Question: Strategy for the Canadian recreational cannabis market [26] - The company maintains a small position in the Canadian recreational market to gain consumer insights and support innovation, but its primary focus remains on the high-margin medical cannabis business [27] Question: Capital allocation plans [28] - The company plans to continue investing in its business, including EU GMP and TGA GMP facilities, while maintaining a strong balance sheet for opportunistic acquisitions [29][30] Question: Impact of U.S. election results on the company [32] - Management reiterated its focus on global medical cannabis, citing the U.S. election results as reinforcing the company's strategy. The company remains well-positioned for future opportunities in the U.S. medical cannabis market [33][34][35] Question: Comparison of Australian and German operations [36] - The company is fully integrated in Germany, with a production facility and established infrastructure. The acquisition of MedReleaf Australia was aimed at achieving similar control and growth potential in the Australian market [37] Question: Impact of pilot programs in Germany on medical sales [38] - Management does not expect significant impact from pilot programs, as the focus remains on the growing self-payer market. The company is seeing strong growth in Germany but requires more time to quantify exact growth rates [39]

[Condensed Consolidated Interim Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Interim%20Financial%20Statements) [Condensed Consolidated Interim Statements of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) Total assets decreased to **$808.8 million** as of September 30, 2024, from **$838.7 million**, with liabilities and equity also declining Consolidated Balance Sheet Highlights (in thousands of CAD) | Account | September 30, 2024 | March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $84,921 | $113,439 | ($28,518) | | Inventory | $170,986 | $143,602 | $27,384 | | Total Assets | $808,774 | $838,673 | ($29,899) | | Total Liabilities | $225,801 | $236,803 | ($11,002) | | Total Equity | $582,973 | $601,870 | ($18,897) | [Condensed Consolidated Interim Statements of Loss and Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Loss%20and%20Comprehensive%20Loss) Net income from continuing operations was **$6.5 million** for the six months ended September 30, 2024, with total net loss improving to **$7.8 million** despite discontinued operations Performance Summary (in thousands of CAD) | Metric | Six Months Ended Sep 30, 2024 | Six Months Ended Sep 30, 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Net Revenue | $164,557 | $137,851 | +19.4% | | Gross Profit | $86,711 | $60,421 | +43.5% | | Income (Loss) from Operations | ($1,515) | ($25,246) | Improvement | | Net Income (Loss) from Continuing Operations | $6,519 | ($19,758) | Turnaround | | Net Loss from Discontinued Operations | ($14,336) | ($10,700) | Increased Loss | | Net Loss | ($7,817) | ($30,458) | Reduced Loss | Earnings (Loss) Per Share | Per Share Data | Six Months Ended Sep 30, 2024 | Six Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Continuing Operations (Basic & Diluted) | $0.16 | ($0.45) | | Discontinued Operations (Basic & Diluted) | ($0.26) | ($0.29) | | Total Operations (Basic & Diluted) | ($0.10) | ($0.74) | [Condensed Consolidated Interim Statements of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Equity) Total equity decreased by **$18.9 million** to **$583.0 million** due to a **$16.0 million** comprehensive loss for the six months ended September 30, 2024 Equity Reconciliation (in thousands of CAD) | Description | Amount | | :--- | :--- | | Balance, March 31, 2024 | $601,870 | | Comprehensive loss for the period | ($16,046) | | Put option liability adjustment | ($7,987) | | Share-based compensation & issuance | $5,242 | | Other | ($106) | | **Balance, September 30, 2024** | **$582,973** | [Condensed Consolidated Interim Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) Cash and cash equivalents decreased by **$28.5 million** to **$84.9 million** for the six months ended September 30, 2024, with **$16.5 million** used in operating activities Cash Flow Summary (in thousands of CAD) | Activity | Six Months Ended Sep 30, 2024 | Six Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | ($16,516) | ($42,119) | | Net Cash Used in Investing Activities | ($2,824) | ($6,137) | | Net Cash Provided by (Used in) Financing Activities | ($3,242) | ($58,208) | | **Decrease in Cash and Cash Equivalents** | **($28,518)** | **($106,025)** | | Cash and Cash Equivalents, Beginning of Period | $113,439 | $234,942 | | **Cash and Cash Equivalents, End of Period** | **$84,921** | **$128,917** | [Notes to the Condensed Consolidated Interim Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [Note 1: Nature of Operations](index=9&type=section&id=Note%201%3A%20Nature%20of%20Operations) Aurora Cannabis Inc. produces and distributes medical and consumer cannabis globally, also holding a **50.1%** interest in Bevo Agtech Inc., a plant propagation supplier - The company's principal business lines focus on **cannabis-related products** in Canada and international markets[15](index=15&type=chunk) - Key business activities include **medical and consumer cannabis** in Canada, and **wholesale medical cannabis distribution** in the EU, Australia, and other international markets[21](index=21&type=chunk) - Aurora holds a **50.1% controlling interest** in Bevo Agtech Inc., a North American plant propagation business[15](index=15&type=chunk) [Note 2: Material Accounting Policies and Judgments](index=9&type=section&id=Note%202%3A%20Material%20Accounting%20Policies%20and%20Judgments) Financial statements adhere to IFRS and IAS 34, consolidating subsidiaries and reporting discontinued operations separately, with IAS 1 amendments having no material impact - The financial statements adhere to **International Financial Reporting Standards (IFRS)** and **International Accounting Standards (IAS) 34** for interim reporting[17](index=17&type=chunk) - Effective **April 1, 2024**, the company adopted amendments to IAS 1 regarding the classification of liabilities as current or non-current, with **no impact** on the financial statements[24](index=24&type=chunk) - The company is currently assessing the impact of **IFRS 18**, which will replace IAS 1 for reporting periods beginning on or after **January 1, 2027**[26](index=26&type=chunk)[27](index=27&type=chunk) [Note 3: Biological Assets](index=11&type=section&id=Note%203%3A%20Biological%20Assets) Biological assets totaled **$41.2 million** as of September 30, 2024, a slight decrease, primarily cannabis and propagation plants, with valuation sensitive to market factors Biological Assets Breakdown (in thousands of CAD) | Category | September 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Indoor cannabis production | $22,995 | $21,522 | | Plant propagation production | $17,757 | $21,252 | | Outdoor cannabis production | $460 | $0 | | **Total** | **$41,212** | **$42,774** | - The weighted average fair value less cost to complete and sell for indoor cannabis was **$4.39 per gram**, up from **$3.76 per gram** at March 31, 2024[29](index=29&type=chunk) [Note 4: Inventory](index=12&type=section&id=Note%204%3A%20Inventory) Inventory increased to **$171.0 million** at September 30, 2024, primarily in harvested cannabis, with **$133.7 million** expensed to cost of sales and **$30.8 million** in provisions Inventory Carrying Value (in thousands of CAD) | Category | September 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Harvested cannabis | $133,011 | $104,149 | | Extracted cannabis | $21,533 | $22,441 | | Supplies and consumables | $14,443 | $14,987 | | Merchandise and accessories | $1,999 | $2,025 | | **Total** | **$170,986** | **$143,602** | - For the six months ended September 30, 2024, inventory expensed to cost of sales was **$133.7 million**, compared to **$120.2 million** in the prior year period[32](index=32&type=chunk) [Note 5: Property, Plant and Equipment](index=13&type=section&id=Note%205%3A%20Property%2C%20Plant%20and%20Equipment) PP&E net book value decreased to **$276.5 million** as of September 30, 2024, mainly due to **$14.1 million** depreciation, partially offset by **$14.7 million** additions PP&E Net Book Value (in thousands of CAD) | Category | September 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Total owned assets | $246,542 | $263,590 | | Total right-of-use lease assets | $29,940 | $30,734 | | **Total PP&E** | **$276,482** | **$294,324** | - During the six months ended September 30, 2024, the company recognized **$14.1 million** in depreciation expense, of which **$8.4 million** was included in cost of sales[34](index=34&type=chunk) [Note 6: Assets and Liabilities Held for Sale and Discontinued Operations](index=14&type=section&id=Note%206%3A%20Assets%20and%20Liabilities%20Held%20for%20Sale%20and%20Discontinued%20Operations) Uruguayan operations were classified as held for sale, incurring an **$11.6 million** impairment loss, contributing to a **$14.3 million** net loss from discontinued operations [Assets and Liabilities Held for Sale](index=14&type=section&id=6%28a%29%20Assets%20and%20Liabilities%20Held%20for%20Sale) - In **June 2024**, the company decided to exit its operations in Uruguay (ICC Labs Inc.), reclassifying its assets and liabilities to '**held for sale**'[35](index=35&type=chunk) - An impairment loss of **$11.6 million** was recognized during the six months ended September 30, 2024, to record the assets held for sale at their fair value less costs to sell[36](index=36&type=chunk) [Discontinued Operations](index=14&type=section&id=6%28b%29%20Discontinued%20Operations) Net Loss from Discontinued Operations (in thousands of CAD) | Period | 2024 | 2023 | | :--- | :--- | :--- | | Three months ended Sep 30 | ($14,640) | ($2,566) | | Six months ended Sep 30 | ($14,336) | ($10,700) | - Discontinued operations include the closures of the **Aurora Nordic facility**, **Reliva**, the dissolution of the **Growery B.V. partnership**, and the exit from **ICC operations in Uruguay**[37](index=37&type=chunk) [Note 7: Intangible Assets and Goodwill](index=15&type=section&id=Note%207%3A%20Intangible%20Assets%20and%20Goodwill) Intangible assets totaled **$42.1 million** and goodwill **$43.2 million** as of September 30, 2024, with goodwill allocated to Cannabis and Plant Propagation segments Intangible Assets and Goodwill (in thousands of CAD) | Category | September 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Total intangible assets | $42,098 | $40,850 | | Goodwill | $43,180 | $43,180 | | **Total** | **$85,278** | **$84,030** | - Goodwill is allocated to the Cannabis segment (**$24.5 million**) and the Plant Propagation segment (**$18.7 million**)[39](index=39&type=chunk) [Note 8: Loans and Borrowings](index=16&type=section&id=Note%208%3A%20Loans%20and%20Borrowings) Loans and borrowings totaled **$57.5 million** as of September 30, 2024, primarily through Bevo, with ongoing discussions to extend Term Facility 1 maturity Loans and Borrowings Continuity (in thousands of CAD) | Description | Amount | | :--- | :--- | | Balance, March 31, 2024 | $57,259 | | Drawings | $6,346 | | Principal repayments | ($6,108) | | **Balance, September 30, 2024** | **$57,510** | - As of September 30, 2024, borrowings consisted of **$34.5 million** from Term Facility 1, **$4.0 million** from Term Facility 2, and **$16.5 million** from the revolver[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) [Note 9: Lease Liabilities](index=17&type=section&id=Note%209%3A%20Lease%20Liabilities) Lease liabilities decreased to **$43.5 million** as of September 30, 2024, from **$47.5 million**, due to payments, modifications, and reclassification from discontinued operations Lease Liabilities Continuity (in thousands of CAD) | Description | Amount | | :--- | :--- | | Balance, March 31, 2024 | $47,532 | | Lease additions | $6,106 | | Lease payments | ($4,187) | | Transfer to liabilities held for sale | ($1,326) | | Lease modifications | ($6,418) | | Other (FX, Interest) | $1,753 | | **Balance, September 30, 2024** | **$43,460** | [Note 10: Share Capital](index=17&type=section&id=Note%2010%3A%20Share%20Capital) As of September 30, 2024, **54,862,958** common shares were outstanding, alongside **7,066,027** warrants with a weighted average exercise price of **$43.74** - At September 30, 2024, there were **54,862,958 Common Shares** issued and outstanding[49](index=49&type=chunk) Share Purchase Warrants Outstanding | Description | Warrants () | Weighted Avg. Exercise Price ($) | | :--- | :--- | :--- | | Balance, March 31, 2024 | 7,074,348 | 44.34 | | Expired | (8,321) | 487.95 | | **Balance, September 30, 2024** | **7,066,027** | **43.74** | [Note 11: Share-Based Compensation](index=18&type=section&id=Note%2011%3A%20Share-Based%20Compensation) Share-based compensation expense totaled **$7.5 million** for the six months ended September 30, 2024, with a **$4.2 million** derivative liability for cash-settled plans Share-Based Compensation Expense (Six Months Ended Sep 30, 2024, in thousands of CAD) | Plan | Expense | | :--- | :--- | | Stock Options | $1,600 | | RSUs | $2,700 | | DSUs | $1,100 | | PSUs | $2,100 | | **Total** | **$7,500** | - The company has cash-settled DSU and PSU plans which are classified as **derivative liabilities** As of September 30, 2024, the related liability was **$2.3 million** for DSUs and **$1.9 million** for PSUs[66](index=66&type=chunk)[67](index=67&type=chunk) [Note 12: Income (Loss) Per Share](index=21&type=section&id=Note%2012%3A%20Income%20%28Loss%29%20Per%20Share) Basic and diluted earnings per share from continuing operations was **$0.16**, resulting in a total loss per share of **($0.10)** for the six months ended September 30, 2024 Basic and Diluted Loss Per Share | Per Share Data | Six Months Ended Sep 30, 2024 | Six Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Continuing Operations | $0.16 | ($0.45) | | Discontinued Operations | ($0.27) | ($0.29) | | **Total Operations** | **($0.22)** | **($0.74)** | [Note 13: Supplemental Cash Flow Information](index=22&type=section&id=Note%2013%3A%20Supplemental%20Cash%20Flow%20Information) Non-cash working capital used **$18.9 million** in cash, and restricted cash totaled **$66.7 million** as of September 30, 2024, including **$39.7 million** for self-insurance - Changes in non-cash working capital used **$18.9 million** in cash for the six months ended September 30, 2024, compared to a use of **$11.0 million** in the prior year period[69](index=69&type=chunk) - As of September 30, 2024, restricted cash of **$66.7 million** included **$39.7 million** for a segregated cell insurance program and **$22.6 million** for self-insurance[69](index=69&type=chunk) [Note 14: Commitments and Contingencies](index=22&type=section&id=Note%2014%3A%20Commitments%20and%20Contingencies) The company faces legal proceedings, including an **$8 million** U.S. class action settlement covered by insurance, and has **$2.9 million** in capital and purchase commitments - A U.S. class action has a preliminary settlement of **$8 million**, which is expected to be covered by insurance[71](index=71&type=chunk) - The company is defending against other claims, including a purported class action in Alberta and a civil claim for **$8.9 million** from a former landlord[75](index=75&type=chunk)[76](index=76&type=chunk) - The company has **$2.9 million** in future capital and purchase commitments payable over the next 12 months[80](index=80&type=chunk) [Note 15: Revenue](index=24&type=section&id=Note%2015%3A%20Revenue) Total net revenue grew **19.4%** to **$164.6 million** for the six months ended September 30, 2024, driven by strong medical cannabis and plant propagation performance Net Revenue by Segment (Six Months Ended Sep 30, in thousands of CAD) | Segment | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Medical Cannabis | $108,517 | $84,831 | +27.9% | | Consumer Cannabis | $21,955 | $25,102 | -12.5% | | Wholesale Bulk Cannabis | $2,370 | $860 | +175.6% | | Plant Propagation | $31,715 | $27,058 | +17.2% | | **Total Net Revenue** | **$164,557** | **$137,851** | **+19.4%** | Net Revenue by Geography (Six Months Ended Sep 30, in thousands of CAD) | Geography | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Canada | $83,369 | $81,293 | +2.6% | | Australia | $24,431 | $13,915 | +75.6% | | Europe | $30,700 | $20,094 | +52.8% | | U.S. | $26,057 | $22,549 | +15.6% | | **Total Net Revenue** | **$164,557** | **$137,851** | **+19.4%** | [Note 16: Segmented Information](index=25&type=section&id=Note%2016%3A%20Segmented%20Information) The Cannabis segment generated **$132.8 million** in net revenue and **$21.2 million** in income, while Plant Propagation had **$31.7 million** revenue and a **$3.5 million** loss Segment Performance (Six Months Ended Sep 30, 2024, in thousands of CAD) | Operating Segment | Net Revenue | Gross Profit before FV Adjustments | Net Income (Loss) before Taxes | | :--- | :--- | :--- | :--- | | Cannabis | $132,842 | $66,373 | $21,215 | | Plant propagation | $31,715 | $4,461 | ($3,453) | - Non-current assets are primarily located in Canada (**$302.7 million**), with smaller holdings in Australia (**$39.4 million**) and the EU (**$29.8 million**)[86](index=86&type=chunk) [Note 17: Fair Value of Financial Instruments](index=27&type=section&id=Note%2017%3A%20Fair%20Value%20of%20Financial%20Instruments) Financial instruments at fair value include a **$54.0 million** Level 3 put option liability and **$4.9 million** in derivative liabilities from warrants and cash-settled units - The 'Other long term liability' of **$54.0 million** includes a put option from the Bevo acquisition, valued at **$53.5 million** using a **Level 3 Monte Carlo simulation**[89](index=89&type=chunk) Financial Instruments at Fair Value (in thousands of CAD) | Instrument | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | Other long term liability | $530 | $0 | $53,517 | $54,047 | | Derivative liabilities | $3,053 | $1,874 | $0 | $4,927 | [Note 18: Financial Instruments Risk](index=27&type=section&id=Note%2018%3A%20Financial%20Instruments%20Risk) The company manages credit and liquidity risks, with **$84.9 million** in cash and access to U.S.**$396.4 million** under its Shelf Prospectus for future operations - As of September 30, 2024, **$25.0 million** of accounts receivable were from non-government wholesale customers[92](index=92&type=chunk) Undiscounted Contractual Obligations (in thousands of CAD) | Obligation | Total | ≤1 year | | :--- | :--- | :--- | | Accounts payable and accrued liabilities | $39,032 | $39,032 | | Lease liabilities | $89,394 | $8,282 | | Loans and borrowings | $57,563 | $53,737 | | Capital commitments | $2,858 | $2,858 | | **Total** | **$188,847** | **$103,909** | - The company has access to capital resources including **$84.9 million** in cash and approximately U.S.**$396.4 million** available for issuance under its 2023 Shelf Prospectus[98](index=98&type=chunk)

Aurora Cannabis Inc. (ACB) has announced a research grant for the University of British Columbia (“UBC”) by Genome British Columbia (Genome BC), a not-for-profit organization supporting world-class genomics research and innovation in British Columbia. The collaborative project, titled “Genomics-enabled Aroma Breeding in Cannabis”, will directly support Aurora's genetics work and focus on validating genetic and chemical markers for fruity aroma in cannabis.ACB Stock’s Trend Following the NewsAfter the announ ...

Core Viewpoint - Aurora Cannabis Inc. has announced a leadership transition with CEO Miguel Martin taking on the additional role of Executive Chairman, while outgoing Chairman Ron Funk has been appointed as Lead Independent Director, aiming to strengthen Board leadership and governance as the company pursues global growth [1][2][3]. Leadership Changes - Miguel Martin has been CEO since September 2020 and has successfully driven financial recovery and business transformation during his tenure [2]. - The Board believes that combining the CEO and Chairman roles will enhance leadership consistency and decision-making efficiency [3]. - Ron Funk, who has served as Chairman since 2021, will continue to provide independent leadership as Lead Independent Director [4]. Board Committee Changes - Michael Singer has been reappointed to the Audit Committee and the Human Resource and Compensation Committee, bringing valuable expertise after being considered independent again [5]. - Rajesh Uttamchandani has been appointed to the HRCC and the Nominating & Corporate Governance Committee, contributing his experience in governance and strategy [5]. Company Overview - Aurora Cannabis is a leading global medical cannabis company based in Canada, serving both medical and consumer markets across multiple regions including Canada, Europe, Australia, and South America [6]. - The company offers a diverse portfolio of brands in both adult-use and medical cannabis markets, emphasizing high-quality products and innovation [6].

Industry Overview - The cannabis industry is experiencing significant changes, with innovation being crucial for growth. The current climate and success of companies are closely tied to the performance of marijuana stocks, especially during election years when candidates may propose improvements for the industry [1][2] - There is an ongoing struggle for better laws and regulations, which affects legal operators and small-batch farmers. However, the acceptance of cannabis as a legitimate industry is evolving positively [1] Investment Interest - Increased speculation has led more investors to seek top marijuana stocks, with a growing demand for cannabis products driving companies to enhance profitability [2] Key Companies to Watch - **Aurora Cannabis Inc. (NASDAQ: ACB)**: Engages in the production, distribution, and sale of cannabis and derivatives in Canada and internationally. Recently announced results from its 2024 annual general meeting [4] - **Cronos Group Inc. (NASDAQ: CRON)**: Focuses on the marketing of cannabis products in Canada, Israel, and Germany. Recently launched new products, including live resin vapes and ice water hash prerolls across Canada [6][7] - **Organigram Holdings Inc. (NASDAQ: OGI)**: Involved in the production and sale of cannabis and cannabis-derived products in Canada. Recently closed the second tranche of a private placement investment [8]