Connect with us

Business

Cannabis firm Aurora's stock jumps 19% in pre-market trading as sales surge during coronavirus – Business Insider

Published

on


Denver Post via Getty

  • Aurora Cannabis, a Canadian marijuana business, posted an 18% increase in third-quarter revenue on Thursday, as sales surged during the coronavirus pandemic.
  • Aurora achieved a greater-than-expected performance during the early months of the pandemic even as restrictions to make only essential purchases could mean consumers faced more difficulty in access.
  • Despite rising sales, Aurora reported a more than $1 billion loss in the nine months to the end of March.
  • Shares bounced on the news, rising more than 14% during Thursday trading, and a further 19% in pre-market trading Friday.
  • Watch Aurora’s stock trade live at Markets Insider.
  • Visit Business Insider’s homepage for more stories.

Canada-based marijuana producer Aurora Cannabis pulled off high sales during the early months of the coronavirus pandemic. 

The licensed weed producer in Alberta posted third quarter revenues of $53.4 million (all figures in this post are in US dollars) on Thursday – an 18% jump from the previous quarter – driven by a 24% increase in sales of recreational marijuana, and a 13.5% increase of medical cannabis. 

Shares jumped more than 14% on Thursday, and by an additional 19% in pre-market trading Friday, after the results were announced.

Despite coronavirus-related restrictions on inessential purchases and social distancing limitations in pharmacies, the marijuana seller achieved an unexpectedly good quarter.

Read more: Todd Ahlsten has dominated the market and his competitors for 2 decades. He lays out the 6 stock-picking decisions that reshaped his portfolio after the coronavirus meltdown.

Chief executive Michael Singer said he was “pleased” with the progress made in the quarter and its commitments to reduce capital expenditures to below $71 million in the second fiscal half of 2020. 

While sales increased, the company reported a loss of just over $1 billion in the nine months to the end of March, Marketwatch reported.

The distributor’s inexpensive weed sales impacted its cash cost to produce dried cannabis per gram which fell to $0.60, from $0.63 in the previous quarter. 

The company noted that its main focus remains on capturing market share for the near term, instead of prioritizing revenue goals.

“The variables associated with the COVID-19 pandemic and the still-developing Canadian consumer market, including consumer buying behaviour and new store rollout, have led Aurora to focus on market share for the near term, rather than revenue targets, to manage the business,” Aurora said in a statement. 

Although the producer claimed an “improved cash position” of $163 million in the quarter and showed it reduced its negative cash flow by 43%, the company is still burning relatively significant amounts of cash, which might be a warning sign for investors.   

Read more: A fund manager who’s doubled his competitors’ returns for 15 years breaks down 2 stock picks for a market recovery – including the US airline that may benefit most from the crisis

Let’s block ads! (Why?)



Source link

Business

Canadian government pushes 3500MHz spectrum auction to June 15, 2021 – MobileSyrup

Published

on


In light of the ongoing COVID-19 pandemic, the government announced that it has postponed the 3500MHz spectrum auction by six months.

The new date for the auction is now June 15th, 2021. Several of the other key dates associated with the auction are listed on the government’s site since they’ve also been pushed back by six months.

“Canada’s telecommunications service providers are doing their part in this difficult time, providing essential services to keep Canadians connected as we face the realities of the COVID-19 pandemic together. A number of providers have raised concerns, and the Government is implementing measures to address them,” said Navdeep Bains, Minister of Innovation, Science and Industry.

“The Government will continue to reach out to telecommunications service providers—and to the private sector more broadly—to understand their challenges and support them to ensure that Canadians have access to high-quality networks and broad coverage at low prices.”

The government’s press release from June 5th, 2020 states that this is in line with what other countries are doing. It will help the telecommunication companies focus on providing robust service to Canadians as many of us are still self-isolating at home.

Beyond this, a consultation on the 3800MHz spectrum is set to begin in August to get the ball rolling on that slice of 5G spectrum as well. Notably, both the 3500MHz and 3800MHz are considered key due to their ability to transport data at 5G speeds at a reasonable range.

In a statement to MobileSyrup, Chethan Lakshman, the vice president of external affairs at Shaw, stated, “given the pandemic’s impact on Canadian society and overall business operations, we support the decision to provide additional time for industry and the government to prepare for this auction. A well-run auction process will ensure that Canadians and the Canadian economy will benefit from strong competition in wireless and 5G for years to come.”

“Our networks are the backbone of so much of our economy and as we continue to rollout Canada’s first 5G network, driving innovation and productivity, we look forward to accessing 3500 Mhz spectrum as soon as it is available,” Rogers said in a statement to MobileSyrup.

Telus, meanwhile, sent MobileSyrup the following statement:

“While we would like to see the auction proceed as soon as possible, we appreciate the government’s recognition of facilities-based carriers for keeping Canadians connected at all times, even during the pandemic. Because of our continued investment in building out communications infrastructure, TELUS’ 4G LTE network speeds are among the fastest in the world; faster even than South Korea’s 5G network speeds, according to Opensignal. We have long been ready to make the crucial investment in 3500 MHz spectrum and network infrastructure required to realize the full promise of 5G so that Canadian entrepreneurs, businesses, and innovators can leverage the next generation of connectivity that promises to benefit us all. In the interim, we will continue to provide our customers with access to the fastest and most reliable networks possible and focus our efforts on supporting Canada’s recovery from COVID-19 in whatever ways we can.”

Update 05/06/20 4:19pm ET: Updated with statements from Rogers and Telus.

Source: Innovation, Science and Economic Development Canada

Let’s block ads! (Why?)



Source link

Continue Reading

Business

Canada unexpectedly adds 289600 jobs on gradual reopening – BNNBloomberg.ca

Published

on


Canada’s labour market unexpectedly strengthened after two-straight months of record losses as the country gradually reopens from COVID-19 related restrictions.

Employment rose by 289,600 in May, Statistics Canada said Friday in Ottawa, surprising economists who had been anticipating more losses last month. The gains were across most industries and provinces, though largely driven by higher employment in Quebec, the province hardest hit by the pandemic.

The numbers echo recent high-frequency data, which had signaled a recovery is underway, with job postings increasing and more Canadians reporting an increase in work at the end of May. They will be a relief to policy makers who had been scrambling to inject hundreds of billions in cash into the economy to keep it afloat. Still, just under 5 million remain without work or substantially reduced hours with the jobless rate at postwar records.

“The surprisingly positive readings on employment paint a more optimistic picture of the early part of the recovery, but there’s still a long road back,” Royce Mendes, an economist at Canadian Imperial Bank of Commerce, said in a research report. “The increase in May only represents 10 per cent of the COVID-19-related job losses and absences that occurred over the prior two months.”

Unprecedented Losses

The pick up in May follows an unprecedented loss of about 3 million jobs in March and April. More than 2 million employed Canadians continue to experience much lower hours worked than pre-crsisis.

The unemployment rate ticked up to 13.7% in May, from 13 per cent in April, as people returned to the labor force. Economists in a Bloomberg survey expected a loss of 500,000 jobs, with the unemployment rate rising to 15 per cent.

Canada’s currency extended gains on the result, appreciating 0.7 per cent to $1.3406 against its U.S. counterpart at 9:46 a.m. Toronto time. Yields on two-year government bonds rose 2 basis points to 0.35 per cent.

The better-than-expected report suggests the governments programs to cushion the blow to the labor market are working. By mid-May, 179,000 businesses had applied for the government’s 75 per cent wage subsidy program. The pace of applications to Canada’s emergency income benefit program has also decelerated in recent weeks, suggesting the worst of the layoffs and job losses is over.

In addition to the employment pick up, Statistics Canada said the number of people who worked less than half their usual hours dropped by 292,000. That means the number of Canadians who have either lost their job or worked substantially fewer hours has fallen to just under 5 million, from about 5.5 million in April. Hours worked rose 6.3 per cent in May from the prior month but were still 23 per cent below February’s levels .

Cautious Reopening

The surprise jump reflects the cautious reopening of the economy across provinces. By the time the employment survey was taken from May 10 to May 16, some provinces including B.C., Saskatchewan and Quebec allowed some non-essential businesses to reopen.

Quebec accounted for nearly 80% of May’s gains, the statistics agency said. In contrast, Ontario -– where the economy remained largely shut until May 19 –- saw more losses.

In the early days of the reopening, employment rebounded more strongly among goods producers, the data show. The goods-producing sector added 165,000 jobs versus 125,000 in services. Lower-wage jobs also rebounded more, particularly in retail trade, accommodation and food services.

Women Lagging

Demographically, male employment increased more than twice as fast as that for women, consistent with the more rapid increase in the goods-producing industry. Women were among the earliest victims of the Covid-19 related job losses in March and the latest data suggest they are slower to recover as well.

“The kinds of jobs that reopened earlier tend to be more male dominated in employment and also that more women don’t know how to get back to work because they don’t know what to do with their kids because schools aren’t open,” said Armine Yalnizyan, a research fellow at the Atkinson Foundation.

Women with at least one child under age 6 showed a slower return to work than women with older children. Statistics Canada said it will continue to monitor labor market outcomes for men and women with children in the months to come.

Youth are still suffering heavily from the Covid-19 economic shutdown. While employment recovered by 30,000 for those aged 15-24, the cumulative job losses for this age cohort are still a whopping 843,000 from February to May.

–With assistance from Erik Hertzberg.

Let’s block ads! (Why?)



Source link

Continue Reading

Business

London region sees 28400 jobs lost to COVID-19 – CTV News London

Published

on


LONDON, ONT. —
The unemployment rate in London increased dramatically in May, according to Statistics Canada.

London’s jobless rate climbed to 11.7 per cent in May, compared to 8.9 per cent in April.

It’s the lowest number of people working in London since 2003, when there were over 80,000 fewer people living in the area.

Based on a three-month rolling average, London-St. Thomas has lost 28,400 people from its labour force – and that’s just since February.

That figure includes Shannon Rumble, “Since the beginning when everything shut down, I haven’t been to work at all.”

Temporarily laid off from her job as a line cook, federal CERB payments are helping, but Rumble needs things to get back to normal soon.

“I’m a single mom, so (my daughter) can’t go to day care. My parents are helping out, but I can’t go to work if she can’t go to school or day care,” she explains.

“Its not just numbers, it’s people,” London Mayor Ed Holder isn’t sugar coating the situation, “It impacts people on a very personal level and if you are trying to make a mortgage (payment), or make sure your kids are alright, I get that.”

From the perspective of businesses, Holder says large employers who are part of his COVID-19 economic task force are balancing an urgent desire to get staff back to work, with the need to keep them safe from COVID-19.

“We will be doing business, we may just be doing it differently,” he says.

Holder predicts a moderate, consistent comeback as businesses reopen, “I am optimistic that, while I don’t think it’s a quick recovery, I think it will be steady.”

On a national level, Statistics Canada reported a record high unemployment rate even as the economy added 289,600 jobs in May, with businesses reopening amid easing public health restrictions.

The national unemployment rate rose to 13.7 per cent, topping the previous high of 13.1 per cent set in December 1982.

The increase in the unemployment rate came as more people started looking for work.

The increase in the number of jobs come after three million were lost over March and April.

The average estimate from economists is for the loss of 500,000 jobs in May and for the unemployment rate to rise to 15.0 per cent, according to financial markets data firm Refinitiv.

– With files from CTV’s Melanie Borrelli and The Canadian Press.

Let’s block ads! (Why?)



Source link

Continue Reading

Trending