Aurora Cannabis Announces Date of Annual General Meeting – Yahoo Finance

Aurora Cannabis Announces Date of Annual General Meeting - Yahoo Finance
Cannabis Roundup: HEXO, CRON, CURA, and ACB
The Company also announced today that it has granted an aggregate of 2,114,703 stock options, 33,186 deferred share units (“DSUs”) and 376,895 restricted share units (“RSUs”) to directors and officers of the Company. The stock options are exercisable at a price of $7.91 per share for a period of five years from the date of grant. Both options and RSUs vest annually over 36 months and the DSUs vest quarterly over 12 months.

Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 625,000 kg per annum and sales and operations in 25 countries across five continents, Aurora is one of the worlds largest and leading cannabis companies. Aurora is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, high value-add product development, home cultivation, wholesale and retail distribution.

In a note entitled, Dont Smoke the Kool-Aid, analyst Bill Kirk, an executive director at MKM, said supply will likely exceed consumer spending growth, which will pressure existing business models. Ever since Canada fully legalized cannabis for adult recreational use last October, companies have struggled with losses and Kirk is expecting things to get worse; like other agricultural products, as yields per acre improve, profitability per acre will fall. U.S. growers in states that have legalized are facing the same dilemma.

Highly differentiated from its peers, Aurora has established a uniquely advanced, consistent and efficient production strategy, based on purpose-built facilities that integrate leading-edge technologies across all processes, defined by extensive automation and customization, resulting in the massive scale production of high-quality consistent product. Designed to be replicable and scalable globally, our production facilities are designed to produce cannabis at significant scale, with high quality, industry-leading yields, and low-per gram production costs. Each of Auroras facilities is built to meet European Union Good Manufacturing Practices (“EU GMP”) standards. Certification has been granted to Auroras first production facility in Mountain View County, the MedReleaf Markham facility, and its wholly owned European medical cannabis distributor Aurora Deutschland. All Aurora facilities are designed and built to the EU GMP standard.

In the U.S., cultivators have indicated that their 2018 (roughly year three of most operations) profitability is down considerably, Kirk wrote. The vast majority recently said they were break-even or profitable in year one. Now, in year three, the vast majority say they are unprofitable to break-even. We are already beginning to see the cracks in Canada: Pricing is down and consumption per federal license is contracting. To us, this means the future presents a less profitable system than exists today.

In addition to the Companys rapid organic growth and strong execution on strategic M&A, which to date includes 17 wholly owned subsidiary companies – MedReleaf, CanvasRX, Peloton Pharmaceutical, Aurora Deutschland, H2 Biopharma, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics, Anandia, HotHouse Consulting, MED Colombia, Agropro, Borela, ICC Labs, Whistler, Chemi Pharmaceutical, and Hempco – Aurora is distinguished by its reputation as a partner and employer of choice in the global cannabis sector, having invested in and established strategic partnerships with a range of leading innovators, including: Radient Technologies Inc. (RTI.V), Cann Group Ltd. (CAN.AX), Micron Waste Technologies Inc. (CSE:MWM), Choom Holdings Inc. (CSE:CHOO), CTT Pharmaceuticals (CTTH), Alcanna Inc. (CLIQ.TO), High Tide Inc. (CSE:HITI), EnWave Corporation (ENW.V), Capcium Inc. (private), Evio Beauty Group (private), and Wagner Dimas (private).

Auroras Common Shares trade on the TSX and NYSE under the symbol “ACB”, and is a constituent of the S&P/TSX Composite Index.

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, NYSE nor their applicable Regulation Services Providers (as that term is defined in the policies of the Toronto Stock Exchange and New York Stock Exchange) accept responsibility for the adequacy or accuracy of this release.

For Aurora, the issue is profitability, which Kirk expects will generally get worse before it gets better. Auroras outsized exposure to medical cannabis relative to peers is another challenge to growth as most medical markets are showing flat to declining medical consumption.

Today, CNCB reported that Chinese trade officials were returning home from the US ahead of schedule. The news appears to have led to a fall in the broader US equity markets. At 2:10 PM ET, the S&P 500 Index and the Dow Jones Industrial Average were both down 0.3%. Cannabis ETFs were also trading in the red.

The ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) were down 0.7% and 0.9%, respectively. Today, the stock performances of cannabis players were mixed.

Kirks comments come after a rough summer for the cannabis sector, with most stocks down by a double-digit percentage rate in the last three months. The ETFMG Alternative Harvest ETF MJ, -0.47%  has fallen about 29% in three months and is now down 6.7% in 2019.

Today, MKM Partners initiated coverage on HEXO (HEXO) with a buy rating and a price target of 12 Canadian dollars. MKM Partners buy rating appears to have led to a rise in HEXOs stock price. At 2:10 PM, the stock was up 11.3%. After its release of its third-quarter earnings results on June 12, HEXO stock was down 38.2% as of September 19. During the quarter, the company reported a sequential fall in its revenue, while its net losses were wider than in its second quarter.

Today, Cronos Group (CRON) received a neutral rating from MKM Partners. Yesterday, the company announced a manufacturing partnership with MediPharm Labs. According to the deal, MediPharm will provide filling and packaging services for Cronos Groups vaporizer devices. At 2:10 PM, the company was up 1.2%. YTD, its stock has fallen 5.4%.

Today, MarketWatch reported that MKM Partners had initiated coverage on Curaleaf Holdings (CURA) (CURLF) with a sell rating. MKM Partners rating appears to have led Curaleaf stock to fall. At 2:10 PM ET, the company was trading 5.1% lower. However, the companys stock price has risen 23.4% since it reported its second-quarter earnings results on August 27. Although Curaleafs second-quarter performance was below analysts expectations, managements bullish outlook for fiscal 2020 drove the companys stock price.

Curaleafs valuation is looking stretched given that most of its retail sales are in Florida, where stores are showing declining productivity and where it has weak scores with customers, based on data from Yelp and Leafly, Kirk wrote.

Today, MKM Partners initiated coverage on Aurora Cannabis (ACB) with a sell rating and a price target of 5 Canadian dollars. MKM Partners sell rating appears to have led to a fall in the companys stock price. At 2:10 PM ET, its stock was down 2.6% from yesterdays closing price.

Stocks have fallen amid a crop of scandals and some weaker-than-expected earnings from Canadian licensed players, that have dampened the hopes for big returns that some investors were expecting.

The stock has been facing downward pressure since the company reported its fourth-quarter earnings results on September 11. Its lost 19.7% of its value since then. Auroras lower-than-expected revenue in the fourth quarter appears to have led to the fall in its stock price.

Software-as-a-service company Datadog (DDOG) made a smashing debut on Wall Street yesterday. After its IPO, DDOGs shares surged 40% in intraday trading.

The S&P 500 SPX, -0.49% was up 0.2% and the Dow Jones Industrial Average DJIA, -0.59%  was up 0.3%.

Jeff Bezos announced that Amazon had placed an order of 100,000 electric delivery vans from Michigan-based startup Rivian.

See also: Cannabis stocks turn higher after Curaleaf misses revenue estimates but offers bullish outlook

Marathon Petroleum (MPC) stock has been tumbling in Q3, driven by geopolitical tensions, oil price uncertainty, and weaker refining conditions.

This week, AT&T CEO Randall Stephenson noted that AT&T (T) is on track to reduce its leverage multiple to about 2.5x by the end of this year.

Jeff Bezos announced that Amazon had placed an order of 100,000 electric delivery vans from Michigan-based startup Rivian.

Bad news on the trade war front appears to have led to a fall in the broader US equity markets today. Cannabis ETFs were also trading in the red.

Energy Transfer (ET) stock has recovered in the last two trading sessions after investors hammered it on its plans to acquire SemGroup (SEMG).

Software-as-a-service company Datadog (DDOG) made a smashing debut on Wall Street yesterday. After its IPO, DDOGs shares surged 40% in intraday trading.


Posted in Aurora