Market Overview

Pot Producer Aurora Cannabis Reshuffles Board Amid Margin Challenges

Pot Producer Aurora Cannabis Reshuffles Board Amid Margin Challenges

Aurora Cannabis Inc (NYSE: ACB), which reported over 400-percent increase in gross revenue in its second-quarter print Feb. 12, announced a major management reshuffle Wednesday.

What Happened

The vertically integrated Canadian pot producer named Michael Singer as executive chairman of its board of directors; Singer previously served as chairman. 

For the uninitiated, an executive chair has a more active role in the day-to-day operations of a company.

Aurora named independent director Ronald Funk as a lead independent director and Margaret Atkins as a new independent director and chair of the audit committee.

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The company also announced the voluntary resignation of Diane Jang, who had served on the board since November 2017.

The company attributed the reshuffle to its intention to ensure that the experience and expertise of the board aligns with its strategic direction.

"In my new role I will continue to work closely with our CEO, Terry Booth, and the rest of our senior executive team on all matters pertaining to strategic direction, execution and finance," Singer said in a statement. 

The newly designated executive chairman also indicated that Funk will work closely with Norma Beauchamp, chair of the governance committee, to enhance the company's corporate governance practices.

Why It's Important

Aurora derived much of its revenues from medical marijuana sales in its Q2. With the legalization of recreational marijuana in Canada, the company now has a changing market to grapple with. 

The company has work to do on margins that have been hurt by the rising cost of production. In Q2, the cost of sales per gram of cannabis rose 36 percent.

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Posted-In: marijuana pot weedCannabis News Management Markets Trading Ideas Best of Benzinga


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