Medical marijuana producer Aphria Inc. says its revenues surged in the fourth quarter of its fiscal year but its net loss nearly doubled as it expands in preparation for Canada legalizing recreational cannabis use in October.
The Leamington, Ont.-based company’s net loss nearly doubled to $5 million from $2.6 million in the prior year on higher compensation, costs associated with Aphria International and losses in its investment portfolio, partially offset by increased gross profit.
The company has been busy raising money and making acquisition deals, including its February purchase of B.C.-based Broken Coast Cannabis Inc., a transaction valued at more than $200-million in stock and cash.
Most recently, it said it plans to expand its cannabis business into South America and Jamaica by acquiring a subsidiary of Scythian Biosciences Inc. for an undisclosed price.
The company posted $12 million in revenues for the three months ended May 31. That’s up from $5.7 million a year ago and 17 per cent higher than the $10.3 million recorded in the third quarter.
The increase was driven by the inclusion of Broken Coast results for the full quarter and increased sales to medical patients, offset by its decision to discontinue wholesale sales to other licensed producers and lower cannabis oil sales to Broken Coast patients.