Aphria to report Q1 results early Thursday, analysts expect $159.6M in sales
Aphria kicks off another period of pot industry quarterly results with its fiscal first-quarter report out early Thursday. Analysts expect the Canadian cannabis producer to report $159.6 million in revenue while booking a net loss of $9.5 million. The company is also expected to report $11.9 million in positive EBITDA. In addition to the top and bottom line expectations, analysts will likely be looking for signs of whether Aphria has been able to expand its market share lead in the still-burgeoning Canadian recreational cannabis market. Canaccord Genuity analyst Matt Bottomley said in a report that he expects Aphria to show about 16 per cent quarterly growth in its recreational cannabis sales while medical revenues stay flat. However, Stifel analyst Andrew Carter notes that Aphria is siginificantly underutilizing its production capacity and that this may “remain a point of controversy” for the company’s stock.
Cannabis was rescheduled (from schedule 1 to schedule 2 of the Misuse of Drugs Act 1971) in 2018 to allow for the medical application of the drug. This major decision was largely influenced by the high-profile cases of two children who suffer from rare forms of treatment-resistant epilepsy.
The parents of Billy Caldwell and Alfie Dingley had tried a number of registered epilepsy medications with little success until they discovered the positive effects of cannabis-based medications. However, the legality of these drugs in the UK meant that they had to source medications from abroad.
The rescheduling of cannabis allowed for specialist clinicians in the UK to prescribe medical cannabis products. Following this decision, medical cannabis is now legal for the first time in almost 50 years.
More than one-quarter of the applicants seeking a municipal permit to sell cannabis in Portland are facing disqualification for failing to satisfy basic eligibility requirements, such as failing to pay local taxes or fees on time or wanting to operate their shop too close to a school or in a land-use zone that doesn’t allow it.
Portland received 43 retail cannabis license applications, and a preliminary staff review suggests 12 of those will be disqualified before the city even considers how, or if, it will use its legally embattled scoring matrix to decide which applicants will land one of its 20 coveted retail marijuana licenses.
A coalition of advocacy groups and marijuana businesses have unveiled a unique plan to legalize interstate cannabis commerce regardless of ongoing federal prohibition.
The Alliance for Sensible Markets campaign will be pushing governors from legal and likely soon-to-be legal marijuana states to enter into an interstate compact—a constitutionally recognized agreement between two or more states—establishing a framework for cannabis to be transported and marketed across state lines.
Maine has announced its first round of fully licensed recreational marijuana businesses, including two retail stores – in South Portland and Northport – that can start selling adult-use cannabis to the public next month.
The retailers, Theory Wellness of Maine in South Portland and Sweet Relief Shop in Northport, are cleared to open on Oct. 9, the opening day for adult-use sales in Maine. In addition, the Office of Marijuana Policy approved Nelson Analytics in Kennebunk as Maine’s first testing lab and grows for Room 5 in Detroit, Gele in South Portland and Grass Roots Marijuana in Auburn.