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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index rose 21.02 points to 134.49, while the Canadian Securities Exchange Composite Index rose 25.69 points to 357.05. For the week, the S&P/TSX index finished up 10.4 points. The CSE Composite, which consists mostly of American cannabis stocks, rose 40.65 points this week. U.S. cannabis stocks rose in part because of SAFE Banking Act provisions being included in a COVID-19 relief package (which has not yet been passed). The provisions would allow banks to finance U.S. marijuana companies without fear of penalty.
Today's S&P/TSX Cannabis Index gains, meanwhile, were driven by Aurora Cannabis Inc. (ACB), which released its fiscal third quarter results after the market closed yesterday. Today, the company's shares surged $6.15, by 67 per cent, to $15.35. Aurora's market cap rose from $933-million at the end of trading yesterday to $1.55-billion today.
As outlined in yesterday's Cannabis Summary, the cannabis producer had fiscal Q3 net revenue of $78.4-million, compared with $56-million in fiscal Q2. Aurora also reduced selling, general and administrative (SG&A) expenses to $75.1-million in fiscal Q3, down from $99.8-million in fiscal Q2. It says it is now on pace to have about $55-million in SG&A expenses in fiscal Q4. The tightened SG&A expenses helped to reduce the company's Q3 operating loss to a still-hefty $83.5-million, compared with $119-million in the quarter before. It burnt through $154-million of cash in fiscal Q3 and finished the quarter with $230-million of cash.
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