Benzinga | May 28, 2021 01:01PM EDT

Cannabis Co. Auxly's Shares Plummet On Q1 Net Loss Of $10.49M, Negative Adjusted EBITDA Of $6.87M

Auxly Cannabis Group Inc. (TSX - XLY) (OTCQX:CBWTF) reported Friday its financial results for the first quarter of the year, with a net loss of $10.49 million, compared to a net loss of $12.74 million in the same period a year ago.

Q1 Key Figures

* Net loss per common share was $0.01, compared to a net loss of $0.02 per share in the corresponding quarter of last year;

* Quarterly revenue amounted to $10 million, up by 1% from the same period of 2020;

* The cannabis company revealed an adjusted EBITDA loss of $6.87 million, which compares to an adjusted EBITDA loss of $8.34 million in the first quarter of 2020;

* Gross profit was $2.34 million, compared to $2.76 million in the same quarter of the previous year;

* Total expenses for the period reached $16.53 million, compared to expenses of $18.59 million in the comparable quarter of 2020.

* At the end of the quarter, Auxly held $20.43 million in cash and cash equivalents, compared to $21.21 million at the end of the first quarter of last year. It also reported debt of $117.91 million at the end of the reporting period;

"As felt throughout the industry, this first quarter of 2021 proved to be a challenging one for Auxly as we continued to combat industry headwinds and the impacts from the COVID-19 pandemic," Hugo Alves, CEO of Auxly, stated. "However, while sales to our provincial customers were impacted, the performance of our products at a retail level remained exceptionally strong, we are very encouraged by the growth in our retail sales and continued market share achievements, which has reinforced our leadership position in the Canadian Cannabis 2.0 market. "

Recent Activity

The Canadian cannabis company announced Thursday that it is selling KGK Science Inc. to Myconic Capital Corp. (NEO: MEDI) for up to $16.5 million.

Price Action

Auxly's shares were trading 14.68% lower at 30 cents per share at the time of writing.

Image Credit: Matca Films