 Hi guys, this is Rich here from RichTVLive and we have some breaking news. Afria sales grow 117% in Q1. It's true, Afria records solid revenue growth in first quarter of 2019, 35% increase in grams sold in Q1 2018, that's a good increase, 117% increase in revenue year over year and net income increases more than 40% year over year. This is breaking news. First thing this morning from Leamington, Ontario, Afria Inc, APH on the TSX or APHQF on the OTC in America, today reports its results for the first quarter and quarter ended August 31st, 2018. All amounts are expressed in Canadian dollars. So you can see that the company's revenues have really grown, I don't know how this is going to affect the market today, it's up a little bit pre-market but nothing substantial so far but I will definitely keep you updated. Key operating highlights, significant increase in grams sold in the quarter driven by wholesale orders being used in clinical drug trials and rebalancing of inventory related to cannabis trim. Full production capacity in Canada currently at 30,000 kgs at Afria 1 and 5,000 kgs at Broken Coast, Canadian based production capacity on scale to reach 255,000 kgs per year with first sale from Part 5, one IV expected in January 2019 pending Health Canada approval. And supply agreements with every province in Canada and the Yukon Territory ensuring access to Afria products for 99.8% of the Canadian population so pretty much they can produce for everybody in Canada, signed LOI and perennial to establish joint venture to develop new consumer centric cannabis infused product categories and brands. Wow, final full quarter of inventory build for adult use market in Canada and international opportunities entered into a representative agreement to be the exclusive sales representative for We Grow BC Limited launched the company's initial portfolio of adult use brands, sole sun growth cannabis, riff, good supply and good fields successfully divested of all US cannabis assets subsequent to quarter end. I don't know about that but I guess that's their decision closed a bought deal common share offering during the period to raise net proceeds of more than $245 million. Wow, so they're definitely very cash rich. Afria started fiscal 2019 by taking significant steps to solidify our position as a premier global cannabis company. We advance the build out of our expansion in Leamington, signed coast to coast supply agreements, launched our strong portfolio of adult use brands and created strategic collaborations with leading companies like perennial that will ensure Afria continues to lead the consumer experience as the cannabis industry evolves. This is Vic Neufeld who is the chief executive officer CEO of Afria. Going forward, we are well positioned not only for the recreational market in Canada but also the continued growth and leadership of the medical cannabis market globally with committed supply agreements, a substantial and growing production footprint, a diversified brand portfolio, proven product development and innovation capabilities and strong international alliances. Afria is focused on driving sustainable long-term profitable growth and capitalizing on the most credit cannabis opportunities around the world. As we long maintain the legalization of adult use cannabis in Canada is a major inflection point for the industry and all licensed producers. Afria included while we experienced a short term decline in adjusted earning in the first quarter, we continue to ramp up our production capabilities with our part four and part five expansions of Afria one added considerable strength to our workforce and continue to move forward aggressively with implementation of our automation infrastructure, which is expected to streamline production over the medium to long terms. We believe the automation investment in particular will provide Afria with a significant competitive advantage and further our industry-leading low-cost structure. So this is what they want to do is they want to have a low-cost structure and and that's a great idea. On behalf of Afria everyone at Afria we are thrilled to welcome the legalization of adult use cannabis in Canada next week. We are ready to usher the industry into an exciting new era and meet the growing demand for cannabis in Canada and globally for years to come said Mr. Neufeld. Key financial highlights revenue for the three months ended August 31st 2018 was 13,292,000 representing a 10% increase over the prior quarter's revenue of 12 million which is pretty good and a 217% increase over the same period last year that is substantial. The increase in the quarter was driven primarily by increased wholesale orders accounting for 313,000 kilograms. The increase in wholesale orders was comprised by approximately 200 kilograms of cannabis trim sold to other LPs to properly balance inventory levels of specific strains that were not in demand by the provincial control boards and approximately 100 kilograms of dry cannabis and cannabis oils supplied to third party partners conducting clinical drug trials. Cannabis oil sales as a percentage of volume increased from 29.2% to 39.1% in the quarter driven primarily by internal formula change for our equivalency factor on a year over year basis revenue in the quarter increased 217.2% that is substantial growth these are very strong numbers adjusted gross profit for the first quarter was 8,458,000 with an adjusted gross margin of 63.8% compared to 9,468,000 with an adjusted gross margin of 78.7% in the prior quarter the decrease in the adjusted gross margin and the adjusted gross profit from the prior quarter largely relates to the internal decision to dispose of 13,642 plants prior to harvest whoa during the period the canopy the company was unable to fill all of the open greenhouse positions due to a lack of qualified local labor which left it with insufficient staff to harvest levels of production is an interesting part here in the aphria one greenhouse in the early summer as a result of the lower staff levels one week crop rotation outgrew its optimal harvest period to maintain the highest quality for its patients and to properly balance production requirements the company disposed of all affected plants to ensure the next week's harvest was grown in optimal conditions had this write-off not occurred the adjusted gross margins would have been much higher by 7.4% or 71% subsequent to the quarter aphria double the size of its greenhouse staff in limiting automation as part of the part for expansion is also expected to be fully operational by the end of Q2 2019 which will further permit aphria to not only permit not only preserve but enhance its industry leading low-cost production standards within the cannabis industry so that's probably why it was down for a good part of the year and why it is exploded recently here and really had a huge jump net income for the three months ended August 31st 2018 was 21 million 176 thousand or 0.09 per share as opposed to 15 million 41 thousand or 0.11 cents per share in the prior year the increase in net income for the quarter relates to gains on a long-term investment portfolio primarily our investments in liberty health sciences love that company and haiku brands love them as well and the increase in fair value of biological assets caused by the production increase associated by with our park three expansion project adjusted EBITDA loss from ACMP our operations for the first quarter was 0.8 million compared to adjusted EBITDA from ACMP our operations of 2.2 million in the prior quarter the decrease in adjusted EBITDA from ACMP our operations relates to a decrease of 1 million in adjusted gross profits and 1.2 million in selling marketing and promotional expenses associated with preparations for adult use adjusted EBITDA loss for the first quarter was 4 million compared to 0.6 million in the prior quarter the difference between adjusted EBITDA and ACMP our operations and adjusted EBITDA is 3.1 million adjusted EBITDA loss on aphria international operations conference call October 12th 2018 the company invites you to join its analyst conference call this morning at 9 a.m. eastern to discuss its financial results for the quarter ended this is huge August 31st 2018 an audio replay of this call will be available until November 9 2018 these are all the conference call details what do you guys think about this this looks like some pretty big news about aphria aphria is a leading global cannabis company driven by unrelenting commitment to our people product quality and innovation headquartered in limington ontario the greenhouse capital of canada aphria has been setting the standard for the low cost production of safe clean and pure pharmaceutical grade cannabis at scale grown in the most natural conditions possible focusing on untapped opportunities and backed by the latest technologies aphria is committed to bringing breakthrough innovation to the global cannabis market the company's portfolio brands is grounded in expertly research consumer insights designed to meet the needs of every consumer segment rooted in our founders multi-generational expertise in commercial agriculture aphria aphria drives sustainable long-term shareholder value through a diversified approach to innovation strategic partnership and global expansion with a presence in more than 10 countries across five continents their first mover conference call will be at noon in the west coast nine a.m eastern in the east coast what do you guys think about this news comment down below smash that like button if you like this news and share this video everywhere if you haven't subscribed subscribe for more updates and hit that bell for notifications so every time risk tv live brings you some breaking news you get the news first thank you for watching remember risk tv live is strictly for education entertainment purposes do your due diligence do your research before you invest in anything we talk about here on risk tv live holler at your boy this is your boy rich you're not winning you're not watching i'm out peace