9. All amounts are expressed in thousands of Canadian dollars unless otherwise specified and except for grams, kilograms, kilo equivalents and per share.
I am proud of our over 1000 employee worldwide efforts as we continue to position Aphria for future growth and success in the global medical and adult industry. Our organization has experienced significant changes in a very short time, which was necessary to drive the company forward.
Our Board of Directors and management will be focused on the development of Aphria's leading position in the global cannabis industry and we are pleased to have announced today the appointment of two new independent leaders. Aphria will continue to pursue sustainable long-term shareholder value by utilizing its strong brand positioning, superior distribution model, product innovation, industrial scale cultivation and automation, leadership for medical use and strategic global platform.
As part of a continuous disclosure assessment, the Ontario Securities Commission requested that the Company perform an impairment test on its LATAM assets after the quarterly reports for 2019 were submitted. As a result of this impairment test conducted by the company, the company decided that a $ 50 million security write-off to the carrying amount of the LATAM assets was necessary. The basis for this write-down stems from the company's revaluation of the discount rate and the financial forecasts for these entities as a result of new financial information received from the financial advisor to a special committee that audited the LATAM transaction. The new financial information consisted of lower gross margins and EBITDA margins that were used by financial advisors for the Special Committee and the latest financial information from the LATAM units that showed higher than expected costs. As a result of this new information, Aphria determined that the discount rate would be adjusted, resulting in the non-cash depreciation to the carrying amount of the LATAM assets.
and found that the acquisition of LATAM assets was within an acceptable range, albeit close to the peak of the range of observable valuation methods; The company's investment in LATAM assets amounts to approximately $ 225 million, after registering the above-mentioned non-cash deduction, which is about $ 30 million more than the original contracted purchase price of approximately $ 195 million.
In a separate release issued today, the company also announced that it has entered into a series of transactions that will accelerate the expiration date of the unwanted offer launched by Green Growth Brands Inc. and will provide up to an additional 89.0 million USD liquidity to the company without dilution to the shareholders. Please refer to this separate press release on the terms of this transaction.
The Board of Directors appointed two new independent Board members, which are effective today. Walter Robb and David Hopkinson will fill two of the three current leadership leaders.
Walter Robb is an investor, mentor and advisor to the next generation company and as a former co-ordinator for the entire food market, he takes to Aphria a long and varied entrepreneurial history ranging from natural food retailers to farmers to consultants. Mr Robb joined Whole Foods Market in 1991 and in 2010 was appointed CEO, when he joined the entire Foods Market Board. In 2017, he changed his leadership focus for his role as a passionate advocate for greater access to food in underprivileged communities, serving as the chairman of the board for the entire children's foundation and the entire foundation. Mr Robb also serves on the board of Union Square Hospitality Group, The Container Store, FoodMaven, HeatGenie and Apeel Sciences.
David Hopkinson serves as Real Madrid Club de Futbols ("Real Madrid") Global Partner Head. He joined Real Madrid in August 2018 and brings 25 years of professional sports sales, marketing and leadership experience to Aphria. Mr Hopkinson began his career in professional sports in Toronto, Canada, where he stepped up from a start-up day an employee of the NBA's Toronto Raptors to the Chief Commercial Officer of MLSE, who owns Raptors and NHL's Toronto Maple Leafs, MLS: s Toronto FC, CFL's Toronto Argonauts and NBA2K League's Raptors Uprising Esports teams. He also serves on the Chancellor's Advisory Committee for McGill University in Montreal. In 2012, David was awarded the Queen Elizabeth II Diamond Jubilee Medal in recognition of his contribution to Canada.
Mr. Simon continued: "We continue to take decisive steps to increase efficiency, including investing additional capital in automation and packaging and adapting production to a new cultivation method. While this contributed to an increase in our costs, we expect higher future returns per square meters leads to stronger results when we begin the fiscal year 2020. We believe that the steps we have taken will help to increase the growth of our strategic initiatives in Canada and internationally to generate long-term shareholder value. "
Net sales for the three Months ending February 28, 2019 were $ 73.6 million, compared to $ 21.7 million in the previous quarter and $ 10.3 million in the same period last year. Higher revenue in the quarter was driven by USD 57.6 million of distribution revenues from CC Pharma and ABP. Net sales include over 1,329 kilo equivalents sold for the Canadian Adult Market and 1,274 kilo equivalents for medical cannabis sales. The decrease in cannabis revenues and kilos sold compared with the previous quarter was mainly related to deficiencies in the supply when the company switched to growing methods during the autumn and winter, as well as temporary packaging and distribution challenges.
The average retail price of medical cannabis (excluding wholesaler) before taxation increased to $ 8.03 per gram in the quarter compared to $ 7.51 in the quarter, mainly related to higher oil exchange. The average adult cannabis sales price was used before excise duty, at $ 5.14 per gram in the quarter, compared to $ 6.32 per gram during the quarter, due to a move to smaller package sizes to maximize the SKU range and shelf space for the company  Adjusted gross profit for the third quarter amounted to $ 13.4 million, with an adjusted gross margin of 18%, compared to $ 10.2 million with an adjusted gross margin of 47% during the quarter. The decline in adjusted gross margin was mainly due to the increase in revenue from our distribution operations, which operates with lower gross margins than our cannabis business operations. In addition, the company experienced a temporary increase in packaging and distribution costs, as the company is waiting for industrial scale and automation in part IV and part V to become active.
Sales, general and administrative expenses in the quarter increased to $ 106.6 million, from $ 27.5 million in the quarter and $ 16.9 million in the previous year. The increase was mainly due to the write-down for the LATAM acquisition of USD 50.0 million, an increase in non-cash compensation, and the introduction of a full quarter of LATAM and two months of CC Pharma.
Net loss for the third quarter of 2019 was $ 108.2 million or $ 0.43 per share compared to net income of $ 54.8 million or $ 0.22 per share during the quarter and net profit of $ 12.9 million or $ 0.08 per share for the same period last year. The decrease in net profit is attributable to non-cash losses of $ 58 million and additional non-operating losses of $ 30 million. Excluding the above-mentioned non-cash write-offs, adjusted net loss was $ 50.2 million or $ 0.20 per share.
I This press release refers to adjusted gross profit, adjusted gross margin, adjusted net loss, adjusted EBITDA loss from Canadian cannabis operations, adjusted EBITDA loss from Aphria International, kilograms (or kilo equivalents) sold, cash costs for producing dried cannabis per gram, "all-in" costs for producing dried cannabis per gram and investments in capital and intangible assets – wholly owned subsidiaries, which are not measures for financial results according to International Financial Reporting Standards. Definitions for all of the above conditions are in the company's February 28, 2019 Management discussion and analysis, submitted to SEDAR and EDGAR.
The Aphria managers will host a conference call to discuss these results today at 9:00 am ET. To listen to the live call, call (888) 231-8191 from Canada and the US or (647) 427-7450 from international locations and use the password 9475768. A telephone replay will be available approximately two hours after the call ends May 15, 2019. To access the recording, call (855) 859-2056 and use the password 9475768.
There will also be a simultaneous live webcast available on Investor's section on Aphria's website at aphria.ca. The webcast is archived for 30 days.
Today, Aphria presented a new logo to coincide with the company's development from a licensed cannabis producer in Canada to a leading global cannabis company. Aphria's mission is to be the premier global cannabis company through a continuous commitment to our people, the planet, product quality and innovation. When the company enters the next phase of growth, the launch of this business brand means Aphria's strategic focus on driving the transformation of the cannabis industry. The Aphria tri-color logo, which has been in use since 2013, will continue to represent the company's flagship medical cannabis brand, Aphria, which has proudly helped nearly 70,000 patients across Canada and cannabis markets worldwide.
Past the audience by registering for 420 Investor, the largest & most comprehensive subscription service for cannabis traders and investors since 2013.
NCV Newswire from New Cannabis Ventures aims to cure high quality content and information on leading cannabis companies to help our readers filter out the noise and remain on top of the most important news about cannabis business. NCV Newswire is handcurated by an editor and not automated anyway. Do you have a confidential news tip? Get in touch.