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Summary
- Aurora Cannabis recently partnered with Israeli medical marijuana company Cantek.
- Stocks of Aurora Cannabis have climbed almost 110 per cent in November.
- Canadian pot company Aphria Inc announced that it is acquiring US-based Brewing Company LLC for about US$ 300 million earlier in November.
- In November, Aphria scrips skyrocketed by almost 52 per cent.
Cannabis stocks continue to ride the high of the US presidential elections results. The anticipation of a Joe Biden presidency saw pot stocks, like Aurora Cannabis (TSX:ACB) and Aphria Inc (TSX:APHA), shoot up earlier in November.
The Democrat presidential duo Joe Biden and Kamala Harris had promised federal legalisation of adult-use recreational cannabis in the US if they won the elections. The hope of gaining access to the US recreational marijuana market has triggered excitement among Canadian pot producers as well.
The S&P TSX cannabis index records a decline of 19.52 per cent this year. However, the index has managed to grow 57.43 per cent quarter-to-date (QTD) and 47.69 in November so far.
As the stocks of Aurora Cannabis and Aphria Inc rally on the Toronto Stock Exchange (TSX), let us take a closer look at their profiles to understand their recent performances better.
Current Share Price – C$ 11.29
Aurora Cannabis recently signed an agreement with Israeli medical marijuana company Cantek, giving the Canadian pot firm access to another international market after Germany.
Earlier in November, Aurora Cannabis also reported its financial results of the first quarter of fiscal 2021.
AURORA CANNABIS STOCK PERFORMANCE
Stocks of Aurora Cannabis are currently trending high on the TSX, with an average trading volume of 7.7 million in the last 10 days and that of 8.2 million in the past month.
Aurora Cannabis’ YTD price chart (Source: EODHD/Others, Thomson Reuters)
Aurora Cannabis stocks are down 66 per cent this year. Since the pandemic-triggered market crash in March, the scrips posted a decline of nearly 51 per cent in the last six months and about nine per cent in the last three months.
However, Aurora shares shot up by almost 110 per cent in November.
AURORA CANNABIS STOCK Q1 FY2021 FINANCIAL RESULTS
The pot firm saw a total net revenue of C$ 67.8 million in the first quarter of fiscal 2021, down one per cent quarter-over-quarter (Q-o-Q). Its medical cannabis net revenue of C$ 33.5 million was down four per cent QoQ from C$ 32.2 million in Q4 FY20. Aurora Cannabis said its international medical business in the latest quarter recorded a growth of over 40 per cent in its net revenue.
Its adjusted gross margin stood at 48 per cent, down from 50 per cent in Q4 FY20. Aurora Cannabis posted a negative adjusted EBITDA of C$ 57.9 million in Q1 FY20, down 79 per cent Q-o-Q.
Its selling, general and administrative expenses (SG&A), combined with research and development (R&D), amounted to C$ 46.9 million in Q1 FY21. The company’s cash balance stood at around C$ 250 million as of November 6.
Current Share Price: C$ 5.94
Canadian pot company Aphria Inc announced that it is acquiring US-based Brewing Company LLC for about US$ 300 million earlier in November. The deal is reportedly expected to close by the end of this year.
Aphria Inc’s market cap stands at C$ 2.6 billion at the moment. Its current price-to-book (P/B) ratio is 1.45, debt-to-earnings (D/E) ratio is 0.23 and price-to-cash flow (P/CF) ratio stands at 2,681.6, as per the data provided on the TMX Group.
APHRIA INC STOCK PERFORMANCE
Stocks of Aphria Inc rebounded steadily since its March lows, climbing nearly 57 per cent in the last six months and about 51 per cent in the last three months.
Aphria shares also grew by 34 per cent approximately this year. In November, the scrips skyrocketed by almost 52 per cent.
Aphria stocks continue to trend on the TSX, with an average trading volume of 4.4 million in the last 10 days and that of 4.8 million in the past month.
APHRIA INC Q1 FY21 FINANCIAL RESULTS
The company’s net revenue amounted to C$ 145.7 million in the first quarter of fiscal 2021, up 15.5 per cent year-over-year (YoY). Its net cannabis revenue of C$ 62.5 million recorded an increase of a significant 103 per cent YoY in Q1 FY21 ending on 31 August.
Aphria Inc recorded a net loss of C$ 5.1 million in Q1 2021, down from that of C$ 98.8 million in Q4 FY20. It also reported a working capital of C$ 725 million and cash and cash equivalents worth C$ 400 million at the end of 31 August 2020. The company had assets worth C$ 891 million as of the end of the latest quarter.
