Cannabis stocks were mostly lower Monday, led down by Aphria Inc. after it swung to a wide loss in the third quarter that outweighed a surge in revenue.
Revenue climbed to C$73.6 million from C$10.3 million in the first full quarter of Canadian legal cannabis. But the company sold less cannabis than a year ago—kilograms sold fell to 2,636.5 from 3,408.9, while the average retail selling price for medical cannabis increased to C$8.03 per gram from C$7.51, primarily because of higher oil sales. The average price for adult-use cannabis fell to C$5.14 from C$6.32, due to a shift to smaller package sizes.
The company said its “all-in” cost of cultivation came to 85 cents per gram of dried flower harvested, down from C$1.48 a year ago, mostly due to higher yields per plant. It is now focusing on vaporizable pen technologies and a range of edibles ahead of the launch of derivatives in Canada in the fall of 2019.
The company said pro forma revenue, including for acquisitions that have not yet closed, came to $54.9 million, up 11% from the second quarter. The company announced plans to acquire PharmaCann LLC in October, in an all-stock deal valued at $682 million. Meanwhile, investors are bracing for the initial public offering later this week of what will be the closest thing to a U.S. cannabis company available for trade on a major U.S. exchange. Greenlane Holdings Inc. GNLN, +0.00% a Florida-based maker of cannabis vape hardware and accessories to retail businesses and consumers across the U.S., Canada and elsewhere around the world, is expected to price its IPO on Wednesday and to start trading Thursday on Nasdaq, under the ticker symbol “GNLN.
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