uploads///Aurora Cannabis

Aurora Cannabis Is Upsizing Its Secured Credit Facility


Aug. 15 2019, Published 4:34 p.m. ET

Aurora Cannabis (ACB), a prominent player in the cannabis industry, announced today that it’s increasing the size of a secured credit facility to 360 million Canadian dollars ($280 million) from $200 million Canadian dollars. At 12:13 PM EDT, Aurora Cannabis shares were down 4.5% for the day. However, its stock has performed well year-to-date.

Glen Ibbott, CFO of Aurora Cannabis, noted, “The upsizing of our credit facility to approximately C$360 million and the broadening of the lending syndicate to include additional Schedule 1 Canadian Banks is further recognition that our best-in-class production facilities lead the industry.”

Today, MarketWatch reported that this additional borrowing consists of term loans and a revolving credit facility, both of which will mature in August 2021.

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Aurora Cannabis: Q4 2019 estimates

Last month, Aurora Cannabis provided updated guidance for its Q4 2019 results. The company plans to report its results next month. The company expects to report revenue from 100 million Canadian dollars to 107 million Canadian dollars.

Aurora Cannabis expects growth across all key business segments including Canadian and international medical as well as consumer markets. The company also expects production available for sale for the fourth quarter to be at the upper end of the range of 25,000–30,000 kg.

Analysts expect Aurora Cannabis to post revenue of around 108.2 Canadian dollars for Q4 2019, and they expect the company to report EPS of -$0.05 in the quarter.

ACB’s peers

This week has proved fruitful for cannabis stocks as the major cannabis players reported their earnings. The cannabis sector also got some attention when Mad Money host Jim Cramer expressed his interest in the sector. He particularly favored Canopy Growth (CGC) and Cronos Group (CRON). Please read Jim Cramer Thinks Cannabis Is Back in Action to learn more. Cronos Group reported its impressive second-quarter earnings last week.

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Innovative Industrial Properties (IIPR), a marijuana-based REIT stock, reported strong second-quarter results last week. IIPR has been the favorite cannabis-related stock to date along with Cronos Group. Read IIPR’s Q2 Earnings Call: Key Takeaways for Investors and Why IIPR’s Q2 Earnings Came in Strong.

Cresco Labs plans to report its Q2 earnings results week. The stock trades on the Canadian Stock Exchange under the ticker CL. The stock has gained some momentum of late—stay tuned for more.

Cannabis stocks affected today

Canopy Growth reported weaker-than-expected results yesterday, which took a toll on other cannabis players. Most of these stocks are trading in the red today. Canopy is down 14.9% today while Tilray is down 10.9%.

To learn more about Canopy Growth’s earnings results, please read Canopy Growth Stock Tanks after Q1 Earnings. Meanwhile, CannTrust (CTST), Aphria (APHA), and Hexo (HEXO) are down 7.0%, 6.6%, and 7.0% today, respectively.

For more industry updates for the month, check out Which Are the Best Cannabis Stocks in August?


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