Vancouver-based Aurora Cannabis (Aurora Cannabis Stock Quote, Chart, News: TSXV:ACB) today reported its fourth quarter and fiscal 2016 results, and though the company posted a hefty loss it predicted better days ahead.
For fiscal 2016, Aurora lost $5.7-million on revenue of $1.4-million. The company posted no revenue in fiscal 2015, as it only began to sell medical marijuana products on January 5 of this year.
Aurora CEO Terry Booth characterized the year, one in which the company raised $68-million, made what it feels were key hires, and strengthened its board.
“Aurora has firmly established itself as a leader and innovator in the cannabis industry,” he said in a press release today. “Since beginning commercial operations in January 2016, we have experienced rapid revenue growth, achieved a remarkable patient registration rate, raised substantial capital towards the execution of our operational and strategic initiatives, and significantly enhanced our balance sheet, with one of the strongest cash positions in the sector. “We have also expanded and enhanced our management team and board with highly accomplished professionals, providing more depth and breadth, as well as further strengthening our corporate governance.
Aurora currently operates a 55,200 square foot production facility in Mountain View County, Alberta, but has plans to open a new 600,000 square foot facility next year. The company believes the new facility will be the world’s largest greenhouse. Booth says the company’s rampup will be substantial.
“In preparation for the tremendous growth we anticipate in this market and for our Company, we announced our plans to increase production capacity to approximately 70,000 kilograms per year via the construction of an advanced, automated greenhouse facility that represents the cutting edge in agricultural technology. Innovation remains a key aspect of our strategy to strengthen the brand associated with the Aurora Standard of excellence in production, operations and customer service. We believe our results to date validate our ambitious growth strategy, and we are extremely well positioned to capitalize on the significant growth opportunities in the cannabis sector.”
Aurora carries strains of Indica and Sativa strains of marijuana such as its “Black Tusk” which has what it calls a “moderate” THC content of ~13%, and “Augusta”, a pure indica strain with a THC content of ~27%. In February of this year, Aurora received a Health Canada license to produce cannabis derivatives and the company says its team has begun tests of cannabis oil extraction to begin the sale of “derivative” products.
Patients can order through Aurora’s website, or through its mobile app, which the company believes is the first ever app for buying federally legal medical marijuana.
Shares of Aurora Cannabis closed today up 2.7 per cent to $2.31.