Ladies and gentlemen, my name is Ron Funk, and I am the Chairman of Aurora Cannabis Inc. I welcome you all to our annual general and special meeting for the company's financial year ended June 30th, 2022. I will act as chairman of this meeting. Joining me today is Miguel Martin, Chief Executive Officer, and Nathalie Clark, General Counsel and Corporate Secretary at Aurora. I now call the meeting to order and will commence with the formal proceedings to appoint a recording secretary and a scrutineer for the meeting. I appoint Nathalie Clark to act as recording secretary for the meeting and Vanessa Lee of Computershare Trust Company of Canada as scrutineer for this meeting. This meeting is being held in a virtual-only format, which is being conducted via live audio webcast.
In terms of formal procedures at today's meeting, as chairman of this meeting, I will propose motions and in accordance with the articles of the company, no motion proposed by me need be seconded. We will conduct votes on the matters before us by a poll on the Lumi system. On a poll, every shareholder entitled to vote on the matter has one vote for each share entitled to be voted on the matter and held by that shareholder. The poll will be opened for all resolutions at the same time. This will allow you to choose to vote on each resolution immediately or wait until the conclusion of discussion on each resolution prior to casting your vote. Due to the format, there will not be an opportunity to address the meeting in real-time during the formal proceedings.
However, registered shareholders or duly appointed proxy holders will be able to enter questions to be addressed during the Q&A session following conclusion of the formal portion of the meeting. As is the case with an in-person meeting, due to time constraints, we may not have time to address all questions through the platform and ask that you follow up with our Investor Relations team if your question is not answered today. There is an online presentation that you will be able to view during the course of the meeting, and viewers are asked to please refer to the disclaimer with regards to forward-looking statements as set out in the presentation. In addition, certain matters discussed during this meeting that are not statements of historical fact could constitute forward-looking statements, which are also subject to risks and uncertainties related to our future financial or business performance.
Such forward-looking statements may include, but are not limited to, statements with respect to the company's ability and timeline to achieve positive Adjusted EBITDA, the opening up of new markets and the company's ability to participate in those markets in the future, product innovation and new products to market, genetics licensing and the expected associated impact on revenue, and statements regarding future shareholder value creation. Viewers and listeners are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are based on certain assumptions that management considers to be reasonable. Material factors or assumptions involved developing forward-looking statements include, without limitation, publicly available information from governmental sources as well as from market research and industry analysis, and on assumptions based on data and knowledge of this industry which the company believes to be reasonable.
Actual results could differ materially from those anticipated in these forward-looking statements, and the risk factors that may affect actual results are detailed in our annual information form and other periodic filings and registration statements. These documents may be accessed via SEDAR and EDGAR. I now declare the polls open on all resolutions. The notice calling this meeting and all proxy related materials were delivered to shareholders by notice and access, with the materials posted on the company's website. All registered and beneficial shareholders received a notice and access notification. I have a declaration as to the notice and access meeting mailing for this meeting, which is available for inspection by any shareholder.
In view of this, I will dispense with calling for a reading of the notice, and I will ask the recording secretary to file the declaration of the notice and access meeting mailing with the minutes of the meeting. Does the recording secretary have the scrutineer's report on attendance?
Yes, I do. The scrutineer's preliminary written report on attendance states as follows. Five shareholders in person representing 904,093 shares. 216 shareholders by proxy representing 92,932,932 shares. 221 total shareholders. So 221 total shareholders holding 92,937,025 shares. Total issued and outstanding as at record date, 300,437,433 shares. The percentage of outstanding shares represented at the meeting is 30.93%. This attendance meets the quorum requirement for the meeting to proceed.
Thank you, Nathalie. The notice of the meeting having been given as required and a quorum being present, I declare this meeting to be duly called and constituted for the transaction of business. The minutes of the last annual general meeting of the company held on November 12th, 2021, are filed in the company's record book. I now put forward a motion that the reading of the minutes of the last annual general meeting of the company be dispensed with, and that the minutes be taken as read and approved. May I please have a motion that the minutes be taken as read, approved and adopted as tabled.
So moved.
Thanks, Miguel. Motion carried. I will now table the financial statements for the company's financial year ended June 30th, 2022. The report of the auditor, KPMG LLP, and the related management's discussion and analysis thereon. These financial statements have been filed by the company on the SEDAR. I would like to propose that we dispense with reading the financial statements. Please note that there will be a Q&A session after the formal portion of this meeting to discuss the company's financial situation and prospects. May I please have a motion that we dispense with reading the financial statements.
So moved.
Thanks again, Miguel. Motion carried. Accordingly, I confirm that the financial statements of the company for the financial year ending June 30th, 2022, the report of the auditor and related management's discussion and analysis thereon, have been submitted and shall be included by the recording secretary as part of the formal records of this meeting. The next item of business is to fix the number of directors for the ensuing year. Management proposes to fix the number of directors to be elected to the board at nine. I move that the number of directors for the ensuing year be fixed at nine. I now call for a vote on the motion before the meeting. If you are a shareholder or a voting delegate who is using Lumi to vote on this matter, you may do so now.
If you have previously voted on this matter and do not wish to change your vote, no further action is required. Would all voting delegates please enter your votes in Lumi? The next item of business is the election of directors for the ensuing year. Management proposes to nominate nine persons for election to the board. These persons are all described in the proxy materials, and all the nominees have agreed to stand for election. The company's articles include advance notice provisions, which provide for advance notice to the company in circumstances where nominations of persons for election to the board are made by shareholders of the company. The company has not received notice of any nominations and, as such, any nominations other than the nominations disclosed in the proxy materials for this meeting may be disregarded. Therefore, I nominate the following nine persons as directors for the ensuing year.
Miguel Martin, Michael Singer, Norma Beauchamp, Margaret Shan Atkins, Theresa Firestone, Adam Szweras, Lance Friedmann, Chitwant Kohli, and myself, Ronald Funk. The nine persons nominated are management's nominees for election, as was stated in the information circular for this meeting. I move that the nominations be closed. I now call for a vote on the motion before the meeting. If you are a shareholder or a voting delegate who is using Lumi to vote on this matter, you may do so now. As a reminder, if you have previously voted on this matter and do not wish to change your vote, no further action is required. Would all voting delegates please enter your votes in Lumi? The next item of business is the appointment of the auditor for the ensuing year. The company proposes that KPMG LLP be reappointed as auditor of the company for the ensuing year.
I now ask for a vote on the motion that KPMG LLP, chartered professional accountants with offices at 777 West Georgia Street, Vancouver, British Columbia, Canada, V6E 4T5, be reappointed auditor of the company. I now call for a vote on the motion before the meeting. If you are a shareholder or a voting delegate who is using Lumi to vote on this matter, you may do so now. Again, as a reminder, if you have previously voted on this matter and do not wish to change your vote, no further action is required. Would all voting delegates please enter your votes in Lumi.
The next item of business is to consider is an amendment to the company's stock option plan as described in the information circular. To pass, the resolution must be greater than a 50% majority of the votes cast by shareholders voting in person or by proxy here at the meeting. I now call for a vote on the motion before the meeting. If you are a shareholder or a voting delegate who is using Lumi to vote on this matter, you may do so now. Again, if you have previously voted on this matter and do not wish to change your vote, no further action is required. Would all voting delegates please enter your votes in Lumi? The next item of business is to consider is an amendment to the company's restricted share unit plan as described in the information circular.
To pass, the resolution must be greater than a 50% majority of the votes cast by shareholders voting in person or by proxy here at the meeting. I now call for a vote on the motion before the meeting. If you are a shareholder or a voting delegate who is using Lumi to vote on this matter, you may do so now. Again, as a reminder, if you have previously voted on this matter and do not wish to change your vote, no further action is required. Would all voting delegates please enter your votes in Lumi. The next item of business is to consider an amendment to the company's performance share unit plan as described in the information circular.
To pass, the resolution must be greater than a 50% majority of the votes cast by shareholders voting in person or by proxy here at the meeting. I now call for a vote on the motion before the meeting. If you are a shareholder or a voting delegate who is using Lumi to vote on this matter, you may do so now. As a reminder, if you have previously voted on this matter and do not wish to change your vote, no further action is required. Would all voting delegates please enter your votes in Lumi. The next item of business to attend to is an amendment to the company's deferred share unit plan as described in the information circular. To pass, the resolution must be greater than a 50% majority of the votes cast by shareholders voting in person or by proxy here at the meeting.
I now call for a vote on the motion before the meeting. If you are a shareholder or a voting delegate who is using Lumi to vote on this matter, you may do so now. Again, as a reminder, if you have previously voted on this matter and do not wish to change your vote, no further action is required. Would all voting delegates please enter your votes in Lumi. The next item of business is the non-binding advisory vote on executive compensation, also known as say- on-p ay, as described in the information circular. To pass, the resolution must be greater than a 50% majority of the votes cast by shareholders voting in person or by proxy here at the meeting. I now call for a vote on the motion before the meeting.
If you are a shareholder or a voting delegate who is using Lumi to vote on this matter, you may do so now. As a reminder, if you have previously voted on this matter and do not wish to change your vote, no further action is required. Would all voting delegates please enter your votes in Lumi? I will pause briefly now and ask that all shareholders and voting delegates finish voting on all items presented as we will be closing voting shortly. Thank you. I confirm that voting has now been closed. I will pause briefly again to allow our scrutineer to advise if sufficient votes have been cast in favor of the items that were presented today. I have received confirmation from the scrutineer that the company has received sufficient votes in favor of each item to carry each motion.
Accordingly, I hereby confirm that all motions were carried. Full voting results will be available on SEDAR after this meeting. We have now concluded the formal business for the meeting, and management will moderate questions following the termination of the meeting. As all the business for the meeting has been concluded, I declare this meeting terminated. Thank you very much for attending. We will now move to the informal part of the meeting, and I'd like to turn it over to our CEO, Miguel Martin, to say a few words.
Thank you, Ron. Let me start by saying we've made incredible progress this year, and we're on track with achieving our primary objective of reaching a sustainable positive Adjusted EBITDA by December 31st, 2022. We've never been more confident in where the company is at, and our optimism about the future of the business is driven by a few key strengths. One, we remain the number one Canadian LP in global medical cannabis revenues, and this business is a formidable force in the industry, both domestically and internationally. It remains the smartest cannabis segment to invest behind today, given the long-term growth opportunities, the high margins, and the defensive nature of the segment. Second, we have delivered on our promises to rationalize the business to the current environment and are on track to achieve up to CAD 170 million in annualized savings by December 31st, 2022.
Having already realized CAD 140 million through Q1 2023. We believe these structural changes will result in long-term benefits for Aurora. Third, our balance sheet is among the strongest in the industry, and we are fortunate to be one of only a handful of companies within the cannabis industry that have a net cash position. Fourth, our investments in science, breeding, and genetics are really beginning to pay off with new proprietary cultivars benefiting both our rec and medical channels, and we have recently signed high-margin cultivar licensing agreements to other Canadian LPs. Let me now summarize some highlights from each of our four business units. Our global medical business is anchored by our number one position in the Canadian medical market.
Our investment in technology and distribution and our direct-to-patient model allows Aurora to achieve sustainable gross profit margins of approximately 60%, with substantially better pricing power relative to the Canadian adult use segment. Further to that, the concierge style service we offer to our high-value insured patient base helps ensure stickiness and a stable revenue stream. Internationally, we remain focused on key developing markets such as Germany, Poland, France, the U.K., and Australia, where our ability to navigate regulatory complexity coupled with our dedication to testing and compliance is a real differentiator that helps us win leadership positions as new markets open up. This fiscal year, we expect a number of new medical markets to come online, and several governments have announced plans for recreational schemes, most notably Germany, where we are one of only three companies with a domestic production license.
Crucially, as we've said many times, our success in medical provides us with significant first-mover advantage, and we believe our leadership will be portable to rec markets as they open up. As our Canadian rec business continues to evolve despite a long and continuing period of macro challenges, our focus remains on maximizing profitability through low-cost production and high-margin categories. This year we acquired Thrive, which is most widely known for its award-winning flagship recreational brand, Greybeard, which was recognized as the number one brand recommended by Canadian budtenders in 2021. We placed the talented management team from Thrive with a track record of running a profitable premium business in charge of our Canadian rec business, and we are excited about the improvements they've already begun making to our cultivation practices and premium product offering.
Thanks to our R&D team, we recently debuted our largest ever lineup of new cannabis products this fall across adult use and medical markets. Not only does our investment in science drive meaningful improvements in yield and margins through new proprietary cultivars, it also helps to deliver a regular stream of new products to consumers and patients in a market which places great importance on innovation. Further to this, we recently signed royalty-based agreements to license genetics to two of the top five Canadian LPs by cannabis revenue and expect this to deliver incremental high-margin revenue streams. Additionally, recall that we purchased a controlling interest back in Bevo back in August and anticipate that it'll drive significant shareholder value to us over the long run.
Bevo is one of the largest suppliers of propagated vegetables and ornamental plants in North America, and the transaction included repurposing the Aurora Sky facility for orchid and vegetable propagation, we expect in time to generate incremental revenue and Adjusted EBITDA. To date, Bevo is performing to internal expectations and is expected to be a positive contributor to our path to positive Adjusted EBITDA in fiscal Q2. Finally, our business transformation extends beyond these operational successes. We've seen extremely positive changes from a governance and executive leadership standpoint. In March 2022, we welcomed Nathalie Clark as Executive Vice President, General Counsel, and Corporate Secretary. In May 2022, David Aird as Executive Vice President, Information Technology.
As you may recall, in late fiscal 2021, Alex Miller joined the organization as Executive Vice President, Operations and Supply Chain, and Lori Schick as Executive Vice President, Human Resources. Each brings over 20 years of expertise in their field and extensive experience in various sectors. I'm confident that Aurora's executive leadership team as it exists today is well equipped to steer the company's future success. Our industry is evolving rapidly in all aspects, and Aurora is at the forefront of that evolution, particularly as it pertains to ensuring strong alignment of incentives between our executive leadership team and shareholder value creation. We reiterate our commitment to continue to evolve these programs and policies over time as our industry evolves and maintain a focus on long-term shareholder value creation. To conclude, we're making significant strategic progress with each passing quarter.
We're nearing the completion of our business transformation plan and have done so while strengthening our balance sheet. In addition, we've made two acquisitions in the past year, Thrive and then Bevo, which underscores our ability to grow organically and through M&A, and we feel confident that we can create significant long-term shareholder value, particularly from these levels. We appreciate your time and interest in Aurora, and now I would be happy to move to our Q&A session. In addition to responding to questions that have been submitted through the platform, we would also like to address the most common questions we are receiving through our Investor Relations mailbox.
Thank you, Miguel. I'm gonna start with the most common questions we receive from our shareholders, and we'll also be taking questions received through the Lumi platform today at our AGM. The first one is as follows: Why should Aurora shareholders be excited about the future of the company?
Well, it's a great question, yeah, and one that we get a lot. You know, Aurora is well on our way in becoming a leader in global cannabis. You know, the completion of the business transformation plan is near, as I previously mentioned, and that's coming in on time and on budget, and we've done all of that without sacrificing our investments in growth. We've also done this while really strengthening the balance sheet, which is so critical in today's environment. A couple of highlights, you know, in addition to those comments. We're just one quarter away from achieving our goal of adjusted positive EBITDA. Cost savings are nearly complete, and going forward, we'll have a lean and flexible operating model. Our medical cannabis business is a formidable force in the industry, both domestically and internationally.
As we've said, it remains the smartest cannabis segment to invest behind today and has incredible growth opportunities. The Canadian rec market is starting to correct, and the two acquisitions we have made in Thrive and Bevo will be even more beneficial once that recovery is upon us. Lastly, our science innovation program is a high-margin opportunity that's just starting. We look forward to sharing more in the future as that business grows.
Thanks, Miguel. Today and over the last several days, we've reiterated several times our goal of achieving positive Adjusted EBITDA. What gives you confidence that we'll meet this stated objective?
You know, as you may recall from our recent, most recent quarterly results last week, our Adjusted EBITDA loss or EBITDA loss was CAD 8.7 million, and we expect the following conditions to be there to get us to positive Adjusted EBITDA. First, we expect revenues to recover in Q2 as the negative impacts of certain cultivars supply and wholesale distribution disruptions affecting both our European and Canadian consumer business units are resolved. Also, our non-EU international segment revenue will return to normalized levels consistent with Q4 of 2022. Secondly, we expect a full quarter of revenue and positive Adjusted EBITDA contributions from the Bevo business, albeit on a seasonally affected basis. Third, we expect adjusted gross margins to be consistent with fiscal Q1 2023.
Lastly, we expect to achieve our previously stated objective of quarterly SG&A expenses being below CAD 30 million for the quarter. You know, we've had a history of delivering on our transformation plans to date, and we're really excited to deliver positive and sustainable structural change to our business that will enable us to be more successful in the long term and continue to create significant shareholder value.
That's great. Thanks, Miguel. Our final question is: Which international markets do you view as the most important for our business, and do you have any plans to enter the United States?
Yeah, that's a great question and one we get a lot, both on the international as well as the U.S. Let me start with the U.S. You know, at Aurora, we've been really consistent in our expectation that the U.S. legalization is a longer-term process, and we firmly believe the path to a federally legal adult use market will start with a federally legal medical framework. There'll be plenty of lead time to prep for any federal changes. We're monitoring that situation closely, but for now, we haven't changed our strategy around the U.S., and we continue to expect medical first following Biden's review of the cannabis rescheduling. Given the current valuations, we remain happy with our strategy to date and feel really good about how we play the U.S. and how we're looking at it going forward.
Moving over to the international front, you know, there are a lot of exciting opportunities, but there's really three that I wanna talk here about. First is Germany, and Germany most recently has laid out plans for rec legalization. We're one of only three companies with domestic production and a leadership position in many of the formats in cannabis on the medical side. Secondly, France. We are currently the sole supplier of dry flower to the pilot scheme. That scheme was extended by a year, and we're really looking forward to partnering with that key market on that expansion. Lastly is the U.K. and Australia. We've seen a rapid growth of patients in the past year, which we hope to continue. Beyond those key markets, we also see great markets continue to expand where we also have leadership positions, places like Czech Republic, Poland, and even Israel.
Ultimately, you know, we expect this growing acceptance to really operate like a domino effect and to continue to see Aurora having great advantages. You know, we believe those markets will translate into highly profitable cash-generating business that sets us up for delivering significant shareholder value in the years to come.
That's great. Thank you, Miguel. There are no further questions on the platform. I turn it over to you to end the call.
Thank you, Nath, and thank you everyone for your questions. We've now concluded our question- and- answer session, and thank you for attending and participating at the meeting. If you have any additional questions or would like to follow up on any questions presented in the meeting which were not addressed, please email our Investor Relations team at ir@auroramj.com. Thanks to everybody for your participation. We appreciate it. All the best.