Cannabis firm Aurora’s stock jumps 19% in pre-market trading as sales surge during coronavirus

Canada-based marijuana producer Aurora Cannabis pulled off high sales during the early months of the coronavirus pandemic.

The licensed weed producer in Alberta posted third quarter revenues of $53.4 million (all figures in this post are in US dollars) on Thursday – an 18% jump from the previous quarter – driven by a 24% increase in sales of recreational marijuana, and a 13.5% increase of medical cannabis.

Shares jumped more than 14% on Thursday, and by an additional 19% in pre-market trading Friday, after the results were announced.

Despite coronavirus-related restrictions on inessential purchases and social distancing limitations in pharmacies, the marijuana seller achieved an unexpectedly good quarter.

Chief executive Michael Singer said he was “pleased” with the progress made in the quarter and its commitments to reduce capital expenditures to below $71 million in the second fiscal half of 2020.

While sales increased, the company reported a loss of just over $1 billion in the nine months to the end of March, Marketwatch reported.

The distributor’s inexpensive weed sales impacted its cash cost to produce dried cannabis per gram which fell to $0.60, from $0.63 in the previous quarter. [Read more at Business Insider]