A shortfall of cannabis in Canada’s regulated market took a toll on the international sales of an industry leader, Aurora Cannabis, according to the company.
The Alberta firm’s international medical cannabis sales rose nearly 40% to 4 million Canadian dollars ($3 million) in the third quarter, up from CA$2.9 million.
“While we continue to expand our business into international markets, we have faced supply shortages for export,” the company noted in a recent regulatory filing.
The company expects that shortage to abate in the coming quarters, as more production comes online and more facilities receive EU-Good Manufacturing Practices (EU-GMP) certification.
Only medical cannabis from facilities certified EU-GMP, or the equivalent, can be sold in key markets such as Germany.
Potential sales of medical cannabis in other countries – especially in Europe – underpin valuations for many Canadian marijuana companies.
The company’s massive Aurora Sky greenhouse is now fully licensed by Health Canada for the cultivation and sale.
That’s going to help Aurora meet demand for medical cannabis at home and overseas.
Aurora produced 15,590 kilograms (34,370 pounds) of marijuana in the latest quarter, doubling the previous period’s 7,822 kilograms.
“Based on the current production run rate, Aurora will have in excess of 25,000 kilograms of product harvested and dried during Q4 2019,” the company anticipates.
A subsidiary of Aurora was selected by German regulators to cultivate and distribute medical cannabis.
The company was awarded a maximum number of five of Germany’s 13 “lots” in the tender over a four-year period, “with a minimum supply of 4,000 kilograms in total. The cannabis produced will be sold to the German government and supplied to wholesalers for distribution to pharmacies,” according to Aurora.
Aurora was expecting the first “saleable” harvest from its Nordic 1 facility in Denmark by the end of March, with products available for sale expected by June.
Matt Lamers can be reached at [email protected]