- Aphria’s key metrics improved sequentially.
- Cannabis stocks have eroded a significant portion of investors’ wealth.
Cannabis stocks have underperformed the broader markets. They have eroded a significant portion of investors’ wealth. Previously, I emphasized how a lack of financing options, higher operational costs, and price competition are taking a toll on cannabis stocks including Aurora Cannabis (NYSE:ACB), Hexo (TSE:HEXO), and Tilray (NASDAQ:TLRY).
Although Aphria (NYSE:APHA) stock has also underperformed, its recent financial performance was impressive. Meanwhile, most of the company’s key performance indicators improved sequentially, which is encouraging.
Aphria’s recent performance
On April 14, Aphria posted stronger-than-expected revenues for the third quarter. The company posted net revenues of 144.4 million Canadian dollars, which was almost double what it reported in the same quarter last year. The reported net revenues were better than analysts’ expectation of 130.6 million Canadian dollars.
The company sold 8,171 kilograms of cannabis for adult-use, 4,491 kilograms in the wholesale market, and 1,352 kilograms of cannabis for medical use. Meanwhile, the average selling prices improved for the adult-use segment. However, the average selling prices declined in the medical-use segment.
Aphria’s adjusted EBITDA of 5.7 million Canadian dollars beat analysts’ expectations of 4.2 million Canadian dollars. The company’s third-quarter adjusted EBITDA marked a significant improvement compared to last year. Aphria has reported a positive adjusted EBITDA for the past four quarters.
Improving performance indicators
Aphria’s key performance indicators improved sequentially. In comparison, Aurora Cannabis’s performance indicators disappointed on all fronts. Aurora Cannabis’s total revenues marked a double-digit decline. Meanwhile, the company’s net loss widened. The cash cost increased on a sequential basis, while the average net selling prices declined across all of the segments.
The kilograms produced and sold marked a double-digit decline. Hexo’s revenues fell short of analysts’ expectation. Also, the continued goodwill impairments are discouraging.
Aphria’s kilograms produced and sold increased drastically. The kilograms produced increased from 13,866 kilograms to 31,086 kilograms. Meanwhile, the kilograms equivalents sold increased from about 7,062 kilograms to nearly 14,014 kilograms. Aphria’s cash cost per gram decreased from 1.11 Canadian dollars to 0.93 Canadian dollars. The all-in cash costs improved from 1.98 Canadian dollars to 1.69 Canadian dollars.
While the cannabis sector as a whole isn’t attractive, Aphria stock looks better than other cannabis stocks. Adding the Diamond facility and improving the operating metrics will help the company’s growth. All of the analysts covering Aphria stock maintained a “buy” rating with a target price of $5.3.
Red White & Bloom Announces Participation in Upcoming Investment Conferences – GlobeNewswire
TORONTO, Nov. 25, 2020 (GLOBE NEWSWIRE) — Red White & Bloom Brands Inc. (CSE: RWB and OTC: RWBYF) (“RWB” or the “Company”) is pleased to announce they will be in attendance at two invitational investment conferences this month.
2020 Cantor Fitzgerald Virtual MSO Cannabis Summit
Presentation: Wednesday, December 16th, 2020 – 3:00PM ET
For more information or to schedule a one-on-one meeting with RWB’s management during these events, please contact Red White & Bloom’s Investor Relations at IR@redwhitebloom.com.
About Red White & Bloom Brands Inc.
The Company is positioning itself to be one of the top three multi-state cannabis operators active in the U.S. legal cannabis and hemp sector. RWB is predominantly focusing its investments on the major US markets of Michigan, Illinois, California, Arizona, Oklahoma and Massachusetts with respect to cannabis, and the US and internationally for hemp-based CBD products.
For more information about Red White & Bloom Brands Inc., please contact:
Tyler Troup, Managing Director
Circadian Group IR
Visit us on the web: www.RedWhiteBloom.com
Follow us on social media:
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING INFORMATION
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations. When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release includes information relating to the new team members expertise and how the Company will benefit from their ability to assist the Company implement its business plan. Such statements and information reflect the current view of the Company with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with the implementation of the Company’s business plan and matters relating thereto, risks associated with the cannabis industry, competition, regulatory change, the need for additional financing, reliance on key personnel, the potential for conflicts of interest among certain officers or directors, and the volatility of the Company’s common share price and volume. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
There are a number of important factors that could cause the Company’s actual results to differ materially from those indicated or implied by forward-looking statements and information. Such factors include, among others, risks related to the Company’s proposed business, such as failure of the business strategy and government regulation; risks related to the Company’s operations, such as additional financing requirements and access to capital, reliance on key and qualified personnel, insurance, competition, intellectual property and reliable supply chains; risks related to the Company and its business generally. The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. While the Company may elect to, it does not undertake to update this information at any particular time.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Feds should invest to meet climate goals, catalyze recovery: RBC – Investment Executive
“Making these investments now could help underpin a low-carbon transition, drawing in business investment, and complementing the government’s efforts to support jobs and economic recovery,” it said.
The government has planned emissions reductions toward the ultimate goal of net-zero emissions by 2050.
Yet, for major polluters, such as the energy sector and heavy industry (such as concrete and steel), carbon capture is technically feasible but “often seen to be cost prohibitive,” RBC noted.
Carbon capture projects “are capital intensive and high-risk during the extended construction phase,” it said, adding that this discourages private investment.
This is where government should be stepping into the breach with public funding for research, RBC suggested. Ultimately, driving down costs and developing effective technology will help the projects become more viable for private investment.
“As it lays out long-term climate plans, the federal government has an opportunity to write a new chapter in Canadian climate policy: one that acknowledges the importance of the energy sector, encourages abatement across industries, leverages investment from the private sector, and spurs innovation in sectors that contribute the most to our climate challenge,” the report said.
At the same time, government investment can help combat the long-lasting effects of the Covid-19 crisis, the report said.
“While crisis support for the economy has rightly been the government’s focus, investment in new technologies and industries can limit lasting scars from this recession,” it said.
Council varies its investment policy – Houston Today
The District of Houston has bolstered its policy of placing public monies in local financial institutions by allowing the amount to be invested to exceed othwerwise specified limits.
It means that $7.5 million in investments coming due Dec. 31 can be placed with either the Bulkley Valley Credit Union or the Royal Bank or with both and not placed elsewhere.
In a detailed presentation made to council Nov. 17, District of Houston chief administrative officer Gerald Pinchbeck, also the District’s financial officer, noted the District’s existing policy sets dollar amount limits based on a percentage of the District’s total investment account and on a percentage of the assets of the Bulkley Valley Credit Union.
The same policy also sets limits on what can be invested with the Royal Bank, the only other financial institution in the community, based on the percentage of securities within the District’s total investment portfolio.
“If there are any overages, then upon maturity the investments woud need to be made elsewhere,” he said.
The District’s investment mix includes term deposits now at the credit union which are guaranteed and senior government and corporate bonds.
In approving of the move to exceed the investment limits in the policy, council directed that the policy be brought back for a further review at a future date.
“Investments under the temporary policy variance will be made by reviewing the rates being offered, the security of the investments available, and the expected return on investment,” said Pinchbeck.
The money the District invests are not required for its current operating or capital spending obligations.
The District’s long-standing policy of placing investments with financial institutions that have a presence in the community reflects its commitment to recognize and support local businesses.
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Manitoba Human Rights Commission reports increased calls from mandatory mask opponents – CBC.ca
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