Losses widen for medicinal cannabis stocks Rua, Cannasouth

Medicinal cannabis company Rua Bioscience said its pretax loss widened to $6.17 million in the June year from a $3.6m loss a year earlier.

A $1.75m tax credit took the net loss down to $4.4m for the year.

Rua, which listed in October 2020, said its investment in research and development came to $1.9m, up from $1.29m.

“The result was in line with the board’s expectations for the year-end and sees Rua further continue to roll-out its strategy to deliver revenue through export sales of pharmaceutical-grade dried cannabis flower to Germany and manufacture the company’s first products for New Zealand patients,” the company said.

Chief financial officer Hamish White said the company continued to focus on the development of its product portfolio and the associated systems and processes in both our cultivation and manufacturing operations.

“The IPO in October 2020 was a significant milestone for the company and has provided the funding to continue our momentum as we begin to transition into commercialisation in 2022,”White said.

Separately, medicinal cannabis company Cannasouth – which listed in June 2019 – said its loss for the six months to June widened to $1.99m from a loss of $1.45m.

“The result was in line with the group’s business plan and represents the ramping up of our investment in developing Cannasouth to be New Zealand’s leading medicinal cannabis company,” Cannasouth said.

Allied Farmers profit up 126 per cent

Allied Farmers’ pre-tax profit for the June year jumped by 126 per cent to $2.48m, reflecting an improved performance in its livestock agency business which recovered from the prior year’s impacts of Covid and drought.

The improvement was partially offset by a lower contribution from Allied’s business, which reflected the impact of Covid on in-market pricing and returns.

The result also includes an inaugural half-year contribution from Allied’s investment in rural property manager New Zealand Rural Land Management Limited Partnership (NZRLM).

NZRLM – which listed last December – produced a strong result in its first six months of operations, delivering earnings of $1.15 million for the year ending 30 June 2021.

Allied’s total revenue came to $21.66m, 7 per cent.

Pacific Edge sets sights on ASX

Cancer diagnostics business Pacific Edge Limited (NZX: PEB) said it would apply to the Australian Stock Exchange (ASX) to list there as a “Foreign Exempt Entity”.

Subject to the ASX accepting the application, Pacific Edge expects to be dual-listed on the ASX by the end of September 2021.

The company intends to maintain its primary listing on New Zealand Stock Exchange.

“The board believes that a dual listing on the ASX is a logical progression for the company and a way of accessing a broader pool of institutional and retail investors who wish to share in PEB’s success,” it said.

“Increasing the liquidity of our shares and widening our investor base have been consistent strategic objectives of the company,” it said.

The ASX had given its approval in principle for the application.

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