Edmonton-based cannabis company Aurora Cannabis Inc. is closing its Aurora Sky facility in that city as part of cost savings plans indicated in its third quarter results.
“[We] are announcing further cost savings which will enable us to increase our range of savings under our business transformation plan from $60 to $80 million to $150 to $170 million,” the company said in a May 12 statement outlining its results. “Our balance sheet also remains among the strongest in the industry, enabling the repurchase of $141.4 million in convertible debt early, while also providing meaningful working capital to support organic growth and pursue strategic M&A, such as our recent acquisition of Thrive Cannabis.”
Aurora acquired TerraFarma Inc., the parent company of Thrive Cannabis, in March.
“Projected COGS savings now include the closure of the Aurora Sky facility in Edmonton (previously announced to be operating at approximately 25 per cent capacity),” the statement said.
Aurora said its net revenue for the period ended March 31 reached $50.4 million, down nine per cent from about $55 million the quarter before. Its medical cannabis net revenue was $39.4 million, an eight per cent increase from the prior year period, Aurora officials said, while its consumer cannabis net revenue was $10.3 million compared to the prior quarter net revenue of $14.4 million “[This] decline [is] due mainly to industry-wide pricing pressures across our portfolio and exacerbated by retail store closures in key provinces for [our] premium offerings,” the news release said.
Aurora’s adult-use brand portfolio includes Aurora Drift, San Rafael ’71, Daily Special, and Whistler, as well as CBD brands, Reliva and KG7. Medical cannabis brands include MedReleaf, CanniMed, Aurora, Whistler Medical Marijuana Co, and Pedanios.