It might be the long weekend but cannabis isn’t taking a break, and neither is The ‘Bis.
It’s been an interesting week in the industry as Toronto’s rugby team became the first in the country to have negotiated a cannabis sponsorship deal, Aurora released their earnings report with some surprises, and more.
Whether you’re at the cottage or out on the town, stay in the know with The Bis Weekly News Update for May 12 to 19.
One of the country’s largest licenced producers of cannabis, Aurora, has released their Q3 financial reports for 2019, and while the company fell below some expectations, they still posted a strong statement for the three month period.
The Canadian cannabis giant came in at a loss — and reportedly higher than analysts had predicted — after they had to reevaluate their share prices, counting for an over $101 million deficit. This news, however, isn’t as bad as it seems. The company reduced its losses by over 30% compared to last year and increased revenues by 20% over the same period of time.
“I’m exceptionally proud of our company and team as Aurora continues to deliver on our domestic and international growth strategy,” said Terry Booth, Aurora’s CEO. “We achieved solid revenue growth and strong operating results in a quarter proven challenging across the industry. We are laser focused on building a long-term sustainable business.”
The company also reports that with their newest production facility, Aurora Sky, coming online, they have managed to increase overall yields and reduce the cost of their products. According to their report, the cost of cannabis production per gram declined by 26% to $1.42 per gram, while the selling price dropped 6% from $6.80 to $6.40.
The amount of flower production has increased by 99% to 15,590 kg since Q2 in 2019, up 1,200% when compared to Q3 2018. Aurora says in a release that the majority of the harvested volume was done “in the last half of the quarter.”
Compared to Q2 of this year, Aurora also managed to increase their totals of medical patients. The company says that, to date, they have 82,745 active registered patients, an increase of 7% compared to previous totals.
“Aurora is an extremely active and diversified company, leading the industry in cannabis research, product development, cultivation, global scale, and revenue growth. With a solid Q3 on all fronts, it’s time to move the yardsticks for the industry again,” said CFO Glen Ibbott. “The company we have built with purpose through both organic growth and targeted acquisitions has provided a unique opportunity: continue to lead the industry in revenue growth while also progressing to positive operating earnings in the near term.”
In a statement released today, Good Buds announced that it had been awarded an outdoor cultivation license for their Salt Spring Island property by Health Canada on May 10.
The company calls this a “market disruptor,” that would drastically lower not just costs, but reduce cannabis’ hefty carbon footprint.
“We’re thrilled to have been awarded an outdoor cultivation license, and are grateful to Health Canada for approving our outdoor grow area in only four months,” said Good Buds Founder and CEO, Tyler Rumi, in a release. “Our outdoor license places us in a great position to keep expanding our business organically. We want passionate cannabis enthusiasts to trust us and stand with Good Buds for the long-term, so we’re committed to growing only the most potent and flavourful cannabis.”
Good Buds is a medical cannabis producer that focuses on small-batch grows, typically intended for extraction. The company received its licence through Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR) in the spring of 2018 and claims to be the fastest ever to receive certification under the program.
The company was founded by brothers Tyler and Alex Rumi who continue to serve as executives on the company’s board.
With the announcement, Good Buds now boasts upwards of 750,000-sq-ft of licensed cultivation space, which they grow using “only living, organic soils rich in bioavailable microorganisms and nutrients for enhanced flavour, sustainability, and quality.”
They are licenced to produce cannabis resins and according to an older press release focus mostly on a product called kief. While the entire plant contains nominal amounts of THC, it’s the trichomes that contain the most. These glands excrete a resin that crystalizes on the outside of the buds — both naturally and during the curing process — that make up the stick powder called kief.
“We believe that if we stay focused on growing the purest cannabis, we’ll end up with the purest extractions. Whenever you’re extracting cannabis, quality-in equals quality-out. That’s why we grow only in recycled living organic soils,” said Alex Rumi, Good Buds Chief Strategy Officer. “We want to produce terpene rich products that celebrate the quality and uniqueness of our sun-grown cannabis.”
Toronto Wolfpack just became the latest player in the new cannabis industry with a line of CBD-infused products. This makes them the first Canadian pro sports team to take a weed sponsorship.
Their first product, a CBD-infused topical cream called ‘Rugby Strength,’ is expected to be released in the coming months by the team’s company, HowlBrands Inc. The team is also partnering with ICC International Cannabis Corp. and Organic Flower Investments Group Inc. to enter the industry.
This move sees the Toronto rugby team adding fuel to the fire of the ever-growing hyped-up CBD market, focusing not just on athletes, but on everyone who wishes to benefit from the relief that CBD provides.
“Anyone who experiences pain, soreness or physical discomfort can use Rugby Strength,” said Toronto Wolfpack Chairman David Argyle, in a release.
Other than topical creams, products in HowlBrands’ sights include fast-absorbing therapeutic relief balms, sport pain tinctures, soaks, and roll-ons.
Once launched, the Wolfpack will be stepping into the CBD market that has been estimated to reach $22 billion (US) by 2022.
According to Eva Allouche, Head of Global Brands for HowlBrands, the company’s “goal is to bridge the gap between professional sports and CBD to offer athletes, active people and anyone who experiences physical discomfort, a range of unique wellness products that deliver the indisputable therapeutic benefits of hemp-based CBD.”
The team says that the products are all third-party tested, non-GMO, gluten-free, vegan, and organic. And they have no plans in getting anyone stoned—all the products will contain zero THC.
In the spirit of sport, the team also says that proceeds of the topical cream ‘Rugby Strength’ will be “reinvested into the development of rugby around the world.”