We’re launching infused pre rolls, we’re launching other minor cannabinoid gummies which have done really well as well as innovations that we’ve seen in flower and other core aspects that have done well. So in this market, you’ve got to be very agile as Glen mentioned in his comments. We’ve done that. And I think what we’ve done really well that I’m really proud of is we take what’s there and we don’t chase what I would call unprofitable market share and we’re still not in a place in the rec business, we’re having a 10 plus share is going to guarantee that we’re going to have greater profitability. So as I mentioned before, we’re about a three share, we’re finding the spots that we think are sustainable and profitable and we are seeing some positive movements, the OCS price wars and other provinces decisions on flower and so we’ll get there.
And as we look forward in the future quarters, we’ll see things like glitches that we’re excited about. And I do think as I mentioned before that the 10 milligram cap will be addressed at some point.
Operator: Next question is from the line of [Yewon Kang] (ph) with Canaccord Genuity. Please proceed with your question.
Unidentified Participant: Hi. Good morning. This is Yewon Kang on for Matt Bottomley. Thanks for the question. Just wanted to touch on the adjusted gross margins for the quarter. Under the wholesale bulk cannabis business, as well as the Bevo Farms business, adjusted gross margins for these segments ticked up this quarter pretty significantly. So I guess, could you speak to any of the drivers that caused the sequential growth in these margins? Thanks.
Miguel Martin: Of course. Glen, you want to take that one?
Glen Ibbott: Yes. Absolutely. So in the plan propagation business, as I mentioned in my prepared remarks, it’s seasonal. And so what’s really happening in the first half of this fiscal year, but it’s all in our reported Q3 this evening and our reported Q1 is that, just a fully utilized stuff to stuff to the rafters facility that’s really cranking out a ton of plants and therefore revenue. So you’re getting a completely utilized cost structure in that — in those two quarters. That’s why the margins are higher. Through the remainder of the year, we expect them to be a little bit lower, more similar to what we saw in our Q2. I guess, the one of the beauties I think of what Bevo is doing with the Sky facility is the orchid business that’s being launched at Sky is a little less seasonal to start to smooth some of those comps out in our time propagation margin.
Beyond that, the bulk sale cannabis, as we just said, have a lot less excess cannabis. And we’re finding a spots to sell some of our higher potency volume and [indiscernible] some nice margins on some of the core bulk sales. That’s not a segment that we’re leaning on there, depending on what we have talked about at [indiscernible]. And that’s really just seen as an outlet after we’ve got four different channels that are all kind of fighting for cannabis right now. If there’s a little bit left at the end also through the bulk sale process. Thank you.
Operator: Thank you. At this time, we’ve reached the end of the question and answer session. I’ll turn the call over to Miguel Martin for closing remarks.
Miguel Martin: Well, listen, we are thrilled with this quarter and more importantly thrilled about where the company is going. We appreciate everybody’s interest in us and we look forward to sharing the story as we go forward. On behalf of everyone in Aurora, thank you for your interest and take it from there. All the best. Thanks.
Operator: This will conclude today’s call. Thank you for your participation. You may now disconnect your lines at this time.
