Cannabis shares were broadly broader on Tuesday as investors digested the first earnings reports of the season and received a first look at a pot banking code that the Democrats intend to pass in 2019.
Aurora Cannabis Inc.
ACB, + 1.81%
ACB, + 2.00%
The shares last traded 2%, after the company said it almost quadrupled its sales and the second However, fiscal year had gained a strong market share quarter, but also had large losses due to a decline in shares associated with marijuana. Aurora has invested heavily in other companies in the industry and needs to track their performance as part of their bottom line. These adjustments accounted for approximately $ 1
The numbers reflect the first full quarter since the launch of legal cannabis sales in Canada in October, the first industrialized nation to sell recreational recreational products. Aurora said that $ 21.6 million of the total sales of $ 54.2 million came from Canada, which suffered from bottlenecks at the beginning of the new regime.
More information about Aurora: Aurora cannabis profits show strong sales growth but a disturbing earnings trend.
Supreme Cannabis Co. Inc.
The shares of 19659004 fell by 3% after the company had achieved a result in the second quarter. The company had a net loss of $ 1.55 million or 1 cent per share for the second quarter ended December 31. This value was below the value of $ 2.03 million or 1 cent per share in the same period of the previous year. Sales increased from $ 1.68 million to $ 7.72 million.
However, the company may have been overly optimistic about its pre-sale cannabis investments. Supreme said that the change in fair value of biological asset growth was $ 10 million, and realized changes in the fair value of assets sold or impaired were $ 6 million. Combining C $ 6 million and C $ 4 million in production costs exceeds $ 7.72 million in revenue.
Now reading: Marijuana IPOs in 2019: These companies could be the next hot-pot holdings.
According to International Financial Reporting Standards or IFRS, the standard used in Canada, companies must report the value of a company's biological asset at various stages of its development in order to streamline returns over time. For cannabis companies, this means that they have to post the theoretical value of the crop before the sale, says Mike Miller, finance director at private equity firm White Sheep Corp. If they are ultimately sold for less than their assigned value then they will have to adjust in the following quarter.
"The cannabis market has experienced tremendous price fluctuations, making it hard to guess the value of biological assets," he said. With the industry still in its infancy, there are no futures markets that could help with pricing, and many price estimates were based on medical cannabis prices that were higher than the prices that retail cannabis retailers could receive.
"If it were 100% accurate, the sales figures should match production costs and customization and go to zero. This will be an issue for many companies in this winning season, and until the industry matures, "he said.
Read more: How marijuana companies can profit without selling pot
Cannabis Revenues Preview: Cannabis Revenues: Cannabis Burglaries May Be Aurora and others sink red ink
Also on Tuesday MedMen Enterprises Inc.
MMNFF, + 1.24%
Chairman of the Board, Adam Bierman, issued a statement to defend himself against the allegations of former Chief Financial Officer James Parker in a lawsuit. Parker, who resigned from office in November for a halved capital increase, sues the company at Los Angeles Supreme Court for, inter alia, breach of contract and unlawful dismissal. At that time, MedMen refused to comment on the CFO exit and said the reduction in funding by almost half was due to a "significant sell-off" on the world market.
Bierman said Parker worked for MedMen for less than 18 months before resigning in November of last year and "has now filed an unfounded, unfair dismissal for his financial gain." We will vigorously defend ourselves in court, "he told MarketWatch in a statement.
Parker's lawsuit asserted that he had been constructively dismissed for no reason and that" the blind eye and a deaf ear are receiving improper and unlawful behavior "on the site The executive continued to claim that it was "confronted, among other things, with an environment of racial, homophobic and misogynistic epithets and slander, drug and alcohol abuse, and personal humiliation triggered by the words and deeds of the CEO and the Company "Full."
Bierman said he had been married to a Latina woman for fifteen years, while MedMen co-founder Andrew Modlin was an openly gay man, with MedMen shares slipping by 5%.
Meanwhile, Democratic Leader of the US Congress has circulated a bill that would allow cannabis companies to increase their profits Investing in banks, according to Marijuana Moment, a website that works with activists, industry representatives and policymakers on trends that affect cannabis. 19659002] The lack of access to banking and capital markets due to the federal ban on cannabis has hindered the development of the sector. The bill was released by the House Financial Services Committee ahead of a Wednesday scheduled meeting on the subject. Democrats envisage further legislative measures in 2019 to promote the sector, including tax fairness, medical access for military veterans and the elimination of current barriers to medical research, according to Marijuana Moment.
If you've missed it: Cannabis stocks fall on a broad front as Aphria rejects the offer and breaks the CBD spreads.
In other areas of Canopy Growth Corp.
CGC, + 3.52%
WEED, + 2.94%
– Shares up 3.3%, Cronos Group Inc.
CRON, + 2.53%
CRON, + 2.44%
shares rose 3.5%, Aphria
APHA, + 8.95%
APHA, + 8.54%
Shares were 8% higher and Tilray Inc.
TLRY, + 1.17%
Stocks of the Hexo Corp.
HEXO, + 4.78%
HEXO, + 4.85%
increased 4.9%, Aleafia Health Inc.
ALEF, + 9.39%
ALEF, + 9.39%
The ETFMG Alternative Harvest ETF
MJ, + 2.68%
increased by 3% and the Horizons Marijuana Life Sciences ETF
HMMJ, + 2.89%
Additional Reporting by Max Cherney
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