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Aurora Cannabis targets more cost cuts on path to profitability By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO. The logo for Aurora Cannabis Inc. (a Canadian cannabis producer licensed under the law) is shown on a floor at the New York Stock Exchange in New York on January 8, 2019. REUTERS/Brendan McDermid/File Photo

(Reuters) – Aurora Cannabis (NASDAQ:) Inc’s top boss Miguel Martin expects the company to be profitable on a core basis in the first half of 2023, helped by C$60 million to C$80 million in cost savings.

Three years after Canada legalized recreational marijuana, large cannabis producers are still losing money. This is due to the lack of retail outlets, lower rates on black markets, and slow overseas growth.

Aurora announced last week that it will close a Edmonton facility. However, the company did not disclose the number of workers who would be affected by this move.

Martin said that the company has the infrastructure and headcount to handle any future challenges. He was asked by Reuters if the company would lay off employees or close down facilities in order to save money.

C$8.58 was the price of shares in the company, which rose 6.2%.

Martin claimed Monday that additional cost-savings will make it easier for the company to achieve adjusted EBITDA positivity by the second half of the next fiscal year. This is even with revenue levels remaining the same as the fiscal 2021 fourth quarter.

Company revenue for the fourth quarter was below expectations and it posted a greater-than expected quarterly loss.

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