Rua loss expected

TENDING PLANTS: Rua Bioscience's plant health specialist Hamish Harris, inside the company's purpose-built cultivation centre in Ruatorea. Rua Bioscience picture

Tairawhiti-based medicinal cannabis company Rua Bioscience has announced a $6.17 million loss but expects to have cannabis products available by next year.

Rua Bioscience today announced its annual financial results for the 12 months ended June 30 2021 (FY21).

The company, which listed on the New Zealand Stock Exchange in October 2020, recorded a loss before tax of $6.17m.

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.

“As a company we continue to focus on the development of our product portfolio and the associated systems and processes in both our cultivation and manufacturing operations,” company chief financial officer Hamish White said.

“The IPO (initial public offering) 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 (financial year) 2022,” he said.

The company achieved several key milestones in its strategy during the period, including a successful, oversubscribed IPO. The company was listed on the NZX in October 2020, raising its targeted $20 million.

Rua deployed funds raised from the IPO across strategic priority areas that underpin achieving initial sales and revenue.

A company statement said it anticipated having product available for New Zealand patients as a prescription-only medicine in 2022, once it had obtained GMP certification, completed the New Medicines Application process and Ministry of Health's Quality Standard assessment, which are required for all new products.

Of the company's 30 staff as at balance date, 15 have whanau connections or whakapapa to Te Tairawhiti. These staff work at all levels of the organisation.