Canadian marijuana producer Aurora Cannabis (ACB) reported fiscal second-quarter sales that came in at the high end of an earlier forecast, even as the company’s losses ballooned. Aurora Cannabis stock and other marijuana stocks were mostly lower after Monday’s close.
The company’s results arrive as investors look for more insights into how Canada’s biggest pot companies are navigating the nation’s nascent recreational market. Canada’s biggest producers are losing money as they try to expand to other nations and increase their production capacity. Shortages in the nation’s supply of recreational weed have forced some dispensaries to close until they can get more supply.
Aurora has driven financial results higher in previous months in part by big acquisitions and investments. The company’s fiscal second quarter encompasses the three months ended Dec. 31. Legal recreational marijuana sales in Canada began on Oct. 17.
Canaccord Genuity analyst Matt Bottomley said the results from Aurora and Canopy Growth(CGC), which reports Thursday, would give investors their “first real look” at the sales potential for the nation’s biggest licensed weed growers. [Read more at Investor’s Business Daily]