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Red or black: A roundup of cannabis financial news

Published on April 10, 2026 by Pat Bulmer

Photo: Contributed

Cannabis financial news: Auxly bids to buy Ayurcann; Slow and steady for Avicanna; Mercanto drops capsules, pre-rolls; MediPharm profits internationally; Tilray making more beer

Auxly set to buy rival

Auxly Cannabis Corp. may be a different and bigger company in the near future.

The company has made a bid to buy rival Ayurcann, which is in bankruptcy protection. Auxly has also provided Ayurcann with a loan to continue its operations.

It will be a surprise if a better bid comes along.

The takeover efforts are well within Auxly’s fiscal abilities, the Toronto-based company said in a management commentary attached to its latest financial statement.

“The absolute size of the transaction is conservative relative to our cash position and forecasted free cash flow, which means the financial risk is quite low whether we are successful in our bid or not.

“At the same time, Ayurcann has established brands and listings in two of our core categories of vapes and pre-rolls,” the commentary said.

Auxly will still have cash to spend if its bid is successful. The company reported having $32 million in cash at the end of the year “against $46 million in total debt.”

In January, the company announced a $10-12 million capital program to upgrade its Leamington, Ont., facility and prepare the site for “direct international distribution.”

While Auxly is eyeing international growth, the company said its focus will still be on the Canadian market: “Our deliberations towards international sales are purposefully rigorous and measured to ensure that international cannabis activities are accretive to profitability and that our focus on winning at home is not compromised,” the commentary said.

Or as CEO Hugo Alves put it: “Canada will remain the foundation of Auxly’s durability.”

Auxly reported net revenue for the year of $151 million, up 24% from the year before.

“In the fourth quarter we surpassed $40 million in quarterly net revenue,” said Alves. “For the full year, Auxly delivered 24% net revenue growth and 64% adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) growth as we continued to scale our business while expanding profitability.

“Our flagship brand, Back Forty, also strengthened its leadership position and was the No 1 cannabis brand in Canada by dollars sold for the entirety of 2025,” the CEO said.

Avicanna avoids extremes

Slow and steady growth appears to be working for Avicanna, a Canadian cannabis pharmaceutical company.

The Toronto-based company just released its 2025 audited financial statement, which showed it’s holding firm in many categories.

For the year, Avicanna sold 211,090 units of cannabinoid products, an increase of approximately 5% over 2024.

The company’s MyMedi.ca medical cannabis platform started the year slowly, but posted three consecutive quarters of growth, the report said.

By the end of the final quarter, the company had 52 brands and 174 commercial listings across medical and adult-use channels, roughly 30% more than in the last quarter of 2024.

“Throughout the year, we strengthened our leadership in cannabinoid-based medicine by advancing our research and development programs, progressing clinical initiatives, and deepening engagement with the Canadian medical community. We delivered the strongest financial performance in our history, reflecting operational discipline, optimization, and efficiencies,” said CEO Aras Azadian.

Financial highlights:

— “Revenue totaled $6.6 million in Q4 2025 and $25.48 million for the year ended December 31, 2025, consistent with $6.6 million and $25.46 million, respectively, in the prior year. Gross margin expanded to 53% in 2025 from 51% in 2024, driving gross profit to $13.4 million, compared to $12.9 million in the prior year.”

— The company generated positive adjusted EBITDA of $310,000 in the fourth quarter of 2025, compared to minus $790,000 the previous quarter. For the year, the company’s EBITDA was minus $290,000, a 76% improvement over 2024.

New products in the works are undergoing trials, while international collaborations and exports are proceeding, the company reported.

“These initiatives position Avicanna to scale efficiently (and) expand internationally,” said Azadian.

New products coming from Mercanto

Mercanto Holdings will introduce a new CBD capsule and infused pre-roll this year in Quebec.

“The company is set to introduce a new CBD 10 mg capsule format (30 capsules per container) in August 2026,” Mercanto said as it released a quarterly financial report. “The product will be sold in-store alongside Mercanto’s existing CBD 50 mg capsules … Management believes the lower dose format is complementary to the existing higher dose capsules.”

Mercanto also offers a 100-mg capsule online.

Mercanto’s infused pre-roll is expected to hit the market in June.

In the latest financial quarter, Mercanto reported:

— Revenue of $2,076,820, compared to $1,003,116 in the prior-year period

— Gross profit of $464,845, compared to $196,413 in the same period a year ago

— EBITDA of $252,233, compared to minus $96,038 a year ago

— Net income of $177,785, compared to a net loss of $109,215

— The company is all paid up on its cannabis excise tax obligations

— The company has no long-term debt, other than lease liabilities

— The company has 51,674,683 common shares out in the public.

Mercanto was once known as The Good Shroom Company before taking on a more adult-sounding name.

Exports drive MediPharm

International sales boosted MediPharm Labs’ revenues by 8% in 2025 over the previous year, the company reported.

“International medical cannabis revenue contributed more than 50% of total revenue,” MediPharm said in a year-end financial statement.

“International medical cannabis revenue in 2025 was $25.2 million, which increased 43% versus prior year.” Total revenue for the year was $45.1 million.

However, revenues did drop in the final quarter: “Revenue for Q4 was $11.1 million compared to $12.0 million in Q4 2024, reflecting timing and mix differences,” the statement said.

The end-of-year downturn wasn’t unusual. Several Canadian cannabis companies reported revenue and sales declines in the final months of 2025, often citing supply-chain issues.

Financial discipline also helped the bottom line, MediPharm said.

“The company maintained a measured approach to cost controls, and monetized non-core assets to further strengthen its balance sheet and capital position,” the statement said.

“As a result of our efforts, we exited 2025 with a more resilient and diversified revenue mix and strong balance sheet with virtually no debt and over $10 million in cash,” said interim CFO Greg Hunter, who replaced David Pidduck in January.

“Looking ahead, we are planning for continued expansion of both our product portfolio and geographic reach, including advancing opportunities in markets such as Brazil, France, and New Zealand.”

MediPharm made its first commercial shipments to France and Brazil (in a partnership) and will be working with a local company to expand to New Zealand this year.

“The company expanded our portfolio of products in Europe and Australia, with the launch of new Beacon and Wildlife products internationally and the launch of our differentiated novel metered dose inhalers in Australia and Canada,” the report said.

Revenues were up in Canada as the year closed: “In Q4, Canadian medical cannabis revenue was $3.2 million, an increase of 8% sequentially versus Q3 2025.”

Other numbers:

— Gross profit for 2025 was $14 million, compared to $12.8 million in 2024.

— Operating expenses for 2025, were $20.9 million, down $700,000 from the previous year.

— Adjusted EBITDA was negative $1.6 million in 2025, an improvement of $300,000 over 2024.

— MediPharm ended 2025 with a cash balance of $10.8 million, up $200,000 from the previous quarter.

“The company remains virtually debt-free, owns two production facilities outright with a combined appraised value of more than $15M, and is current on excise duties and trade payables,” the report concluded.

MediPharm mostly produces cannabinoid pharmaceuticals. Its main facility is located in Barrie, Ont. In 2023, MediPharm bought Napanee, Ont.-based Vivo Cannabis.

More beer for Tilray

A giant in the cannabis industry is getting larger.

Tilray Brands notched company records for international cannabis revenue, net revenue and gross profit for the financial quarter ending Feb. 28.

Tilray is headquartered in both Canada and the US. In Canada, the company’s focus remains on cannabis. In the United States, and now the UK, craft brewing is becoming a bigger part of Tilray’s lineup.

“With the acquisition of BrewDog, the UK’s leading craft beer brand, and our recently announced partnership with Carlsberg beginning in 2027, we are accelerating the buildout of a scaled global beverage platform,” CEO Irwin D. Simon said in the quarterly report.

Cannabis hasn’t disappeared, however: “Our international cannabis business delivered its best quarterly net revenue in company history, with over 70% year-over-year growth,” Simon said.

Globally, cannabis net revenue increased 19% to $64.8 million compared to $54.3 million in the same quarter a year ago. International cannabis revenues were up 73% and Canadian revenues (recreational and medical) rose by 8%.

Cannabis gross profit increased 18% to $26 million.

Other financial highlights:

— “Our balance sheet remains strong, supported by cash, restricted cash, and marketable securities balance of $264.8 million at the end of the third quarter,” the report said. “We also further reduced our total outstanding debt by $4.2 million.”

— “Our net cash position of $3.5 million improved $40.2 million from a net debt position of $36.6 million in the prior year period.”

— The company cut costs by $33 million as part of its Project 420 program.

— “For its fiscal year ended May 31, 2026, the company reconfirms its guidance to achieve adjusted EBITDA of $62 million to $72 million, representing growth of 13% to 31%.”

— Net revenue increased 11% to a record $206.7 million in the quarter.

— Gross profit increased 6% to a record $55 million.

— Net loss improved 97% to $25.2 million in the third quarter compared to a net loss of $793.5 million in last year’s same quarter.