Regal Investment Advisors LLC Purchases Shares of 47,487 Aurora Cannabis Inc (ACB)

Regal Investment Advisors LLC Purchases Shares of 47,487 Aurora Cannabis Inc (ACB)

Regal Investment Advisors LLC Purchases Shares of 47,487 Aurora Cannabis Inc (ACB)

Aurora reported losses in excess of C$237.8 million on the C$54.2 net revenue, leaving the company ledger in the red. CEO Terry Booth was happy with the way the company performed during the period.

The most heavily traded shares by volume were Aurora Cannabis Inc, Bombardier Inc and Aphria Inc.

Aurora Cannabis Inc produces and distributes medical cannabis products.

The Edmonton-based cannabis producer reported $54.2 million in revenue in the second quarter, up 363 per cent from the same period past year. These newly acquired companies will allow Aurora to increase production, with the company expecting substantial revenue growth from the Canadian consumer market and worldwide medical markets by the end of 2019.

Aurora's results were driven by stronger legal recreational cannabis sales in Canada, but despite the large revenue growth annually, it represented a shrinking margin. The company also said it is on track to reach a sustained positive EBITDA, a measure of a company's operating performance, in its fourth quarter.

Other institutional investors have also recently bought and sold shares of the company. Provinces, many of whom control the distribution and sale of cannabis, say that they are just not getting enough product from licensed producers to meet consumer demand. The lackluster net revenue is because of the taxes Canada imposes on recreational marijuana and the net loss to Aurora Cannabis' profits.

The company also attributed a delay in ramping up production to logistical issues that came with moving staff and equipment from its main Aurora Mountain facility, also near Edmonton, over to its Aurora Sky facility when the latter obtained a license to produce on October 17.

The licensed producer also said that its priority in terms of product allocation, was to ensure its Canadian and global medical markets were fully supplied, before focusing on the domestic recreational market.

During its second quarter, Aurora said it increased cannabis production by 57 per cent to 7,822 kilograms and raised the amount it sold by 162 per cent to 6,999 kg, as it "significantly" scaled up its cultivation operations.

"Aurora disagrees with this practice, and we're not collecting tax from our medical patients but rather are absorbing the cost despite the slight negative effects on our revenues", said Battley. At market close on Monday, the company's stock was down approximately five percent.

Sincel legalization, Aurora's stock has lost roughly 35 per cent of its value, as the pre-legalization buoyancy for pot stocks began to subside. The company reported $0.09 earnings per share (EPS) for the quarter, topping the Zacks' consensus estimate of ($0.04) by $0.13.

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