07:19 AM EDT, 04/15/2019 (MT Newswires) -- Aphria Inc. (APHA.TO, APHA) was at last look down more than 10% in US pre-market trade after it reported third quarter net revenue of $73.6 million, up 240% from the prior quarter and 617% from prior year period. But it also revealed net loss for the third quarter of 2019 was $108.2 million or $0.43 per share, compared to net income of $54.8 million or $0.22 per share in the prior quarter, and net income of $12.9 million or $0.08 per share for the same period last year. It said the decrease in net income relates to non-cash impairments of $58 million and additional non-operating losses of $30 million. Excluding the aforementioned non-cash impairment charges, adjusted net loss was $50.2 million, or $0.20 per share.
Among other highlights, it talked up current annualized production capacity of 115,000 kilograms and appointed Walter Robb and David Hopkinson as independent directors to Board of Directors.
Aphria has also entered into a series of transactions that will accelerate the expiry date to April 25, 2019 for the previously announced take-over bid by Green Growth Brands Inc. (CSE:GGB) and will terminate the arrangements with GA Opportunities Corp. for consideration of $89.0 million.
Meanwhile, Aphria revealed that the Ontario Securities Commission requested as part of a continuous disclosure review that the company perform an impairment test on its LATAM assets subsequent to the filing of the 2019 second quarter financial statements. As a result of this impairment test conducted, Aphria determined that a $50 million non-cash impairment charge to the carrying value of the LATAM assets was required. It said: "The basis for this impairment arises from the company's reassessment of the discount rate and the financial forecasts for these entities as a result of new financial information received from the financial advisors to the Special Committee who reviewed the LATAM transaction. This new financial information consisted of lower gross margins and EBITDA margins used by the financial advisor for the Special Committee and recent financial information from the LATAM entities that showed higher than expected expenses. As a result of this new information, Aphria determined that the discount rate should be adjusted which resulted in the non-cash impairment charge to the carrying value of the LATAM assets."
Price: 13.41, Change: +0.36, Percent Change: +2.76
$inai