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Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Cannabis stock rally after Aurora announces first quarter results

Cannabis stock rally after Aurora announces first quarter results



On Tuesday, cannabis stocks were higher as investors used their first seasonal earnings reports and for the first time looked at the bank account that the Democrats expect to hand over in 2019.

Aurora Cannabis Inc.

ACB, + 0.70%

ACB, + 0.63%

shares last increased by 2%, after the company claimed to have increased almost four times, and in the second fiscal market, a large market share. but also suffered significant losses due to reduced marijuana-related shares. Aurora has invested heavily in other companies in this sector and has to monitor its activities as part of its revenue. These adjustments amounted to approximately $ 1

90 million ($ 143 million) of their losses and came after the sector was sold.

These figures reflect the first full quarter of legal cannabis sales in Canada in October, the first industrialized country allowing material sales. Aurora said 21.6 million US $ 54.2 million He sold US dollars from Canada, which suffered shortcomings at the start of the new regime

. For more information on Aurora, see: Aurora Cannabis Revenue shows a significant increase in sales floods, but concerns about the profit trend

Supreme Cannabis Co.

FIRE, -4.10%

SPRWF, -1.84%

shares fell by 3% after the company earned a profit in its second quarter. The company's net loss was EUR 1.55 million. USD, or 1 cent, in its fiscal second quarter to December 31, ie narrower than $ 2.03 million Revenue increased to 7.72 million. USD $ 1.68 Million

However, the company was able to overestimate its cannabis plants before sale. The chief said that the change in fair value due to the growth of its biological assets was $ 10 million, but the change in the fair value of realized or impaired inventories was $ 6 million. Combining $ 6 Million and $ 4 Million USD $ 7.72 million in production costs Now Read: 2019 Marijuana IPO: These Companies Could Be Another Hot Stock

Companies are required to report their value in accordance with International Financial Reporting Standards or IFRS as used by Canada. biological assets at various stages of its development as a way to earn money over time. In the case of cannabis companies, this means that they have to register the theoretical value of the crops before selling them, says Mike Miller, finance director of the private equity company White Sheep Corp. it will have to make adjustments in the next quarter.

"The market for cannabis has huge price fluctuations, making it hard to guess what the value of a biological asset is," he said. As the industry is still at an early stage, there are no futures markets that would help in pricing, and many price estimates were based on the prices of medical cannabis that were higher than the prices retailers could obtain for cannabis.

"If it were 100% accurate, the revenue would have to correspond to the cost of production and the adjustment and zero. This will be a problem for many companies, earned by this profit season, and until the industry matures, ”he said.

Read more about this topic: How marijuana companies can profit without selling

Revision of Cannabis Income: Cannabis Income: The fall in stock of floods can drown Aurora and other red inks [19659002] Also on Tuesday, MedMen Enterprises Inc.

MMNFF, + 1.58%

Chief Executive Officer Adam Bierman issued a statement to defend himself against allegations made by former financial officer James Parker. Parker, who resigned from his position in November when he raised his equity, was sued in the Los Angeles Supreme Court for breach of contract and unlawful termination, among others. At that time, MedMen refused to comment on the departure of the CFO and said that the reduction in funding was almost half of the "big sales" on the world market.

Bierman said that Parker had been working for MedMen for less than 18 months before he resigned in November last year and now "filed an unjustified, unlawful termination claim for his financial gain." We will resolutely defend ourselves in court, ”he said in a statement by MarketWatch. firm. The facilitator also claimed that he "encountered an environment with racial, homophobic and misognistic epithets and fractures, drug abuse, personal humiliation caused by the words and deeds of the company's general manager and president."

Bierman said he had been married to Latina for the past 15 years, and Andrew Modlin, the founder of MedMen, was openly gay.

The New York Daily News reported that the New York Medical Cannabis Industry Association had crossed links with MedMen for suspicions. The company representative did not submit a request for comment. MedMen shares fell by 5%.

Meanwhile, US Congress Democratic leaders have distributed a bill that would allow cannabis companies to make a profit in banks, according to Marijuana Moment, a website working with activists, industry and policy makers on trends affecting cannabis. 19659002] The lack of access by banks and capital markets to the federal ban on cannabis hampered the development of this sector. The bill was announced by the House Financial Services Committee before the meeting scheduled for Wednesday on this topic. Democrats in 2019 Looking for other legislative measures to encourage the sector, including tax justice, medical access for military veterans, and the removal of current barriers to medical research under Marijuana.

If you missed: Cannabis resources are falling down because Aphria refuses to bid against CBD prevalence

Elsewhere in the sector, Canopy Growth Corp.

CGC, + 2.69%

WEED, + 2.20%

shares increased 3.3%, Cronos Group Inc.

CRON, + 1.41%

CRON, + 0.97%

shares increased 3.5%, Aphria

APHA, + 8.40%

APHA, + 7.55%

shares were 8% higher and Tilray Inc.

TLRY, + 0.77%

increased by 1.3%

Hexo Corp.

HEXO, + 5.94%

HEXO, + 4.70%

was 4.9%, Aleafia Health Inc.

ALEF, + 6.57%

ALEF, + 6.57%

increased by 9%

ETFMG Alternative Harvest ETF

MJ, + 2.48%

increased by 3% while Horizons Marihuana Life Sciences ETF

HMMJ, + 2.38%

increased by 3.2%.

Additional Max Cherney Report

The full coverage of the MarketWatch cannabis sector, click here.


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