+ 4.08
+ 1.41%
+ 4.47
+ 1.51%
+ 5.61
+ 1.57%

Aurora Cannabis Falls After Announcement Of 12-For-1 Reverse Stock Split

April 13, 2020 3:21 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

Shares of Aurora Cannabis Inc. (NYSE:ACB) plummeted Monday after the Edmonton, Canada-based company announced that it will renew its at-the-market offering of up to $350 million in stock and complete a board-approved 1-for-12 reverse stock split.

The main objective of the latter move is to drive the share price above $1, which is a requirement to remain listed on the New York Stock Exchange.

The reverse stock split is scheduled for May 11.

Aurora said the moves will improve liquidity and help strengthen the balance sheet.

The company “intends to use a portion of this available capacity to provide further balance sheet strength and preserve flexibility given macroeconomic uncertainty caused by COVID-19,” according to Aurora. 

The cannabis company also said it “remains on track with its previously announced business transformation targets, including: (1) material selling, general and administrative cost reductions; (2) significant reductions in capital expenditures; and (3) reducing complexity across the organization.”

Aurora shares were down 14.16% at 75 cents at the time of publication Monday. 


Related Articles

Jay-Z Inks Largest Cannabis SPAC Deal Ever With Subversive Capital, Roc Nation, Caliva, Left Coast Ventures

Music industry mogul Jay-Z is set to join a newly formed cannabis company that's expected to become the largest in California. read more

Cannabis Stock Gainers And Losers From November 24, 2020

GAINERS: Cann Gr (PINK: CNGGF) shares closed up 44.86% at $0.37 read more

Her Highness Enters Nevada Market Via Body And Mind Partnership

Women-centric cannabis brand Her Highness is expanding into Nevada through a production licensing partnership with MSO Body and Mind Inc. (CSE: BAMM). Her Highness products are now available across Nevada dispensaries. read more

AgraFlora Secures Agriculture Loan To Support Phase 1 Cultivation Strategy

AgraFlora Organics International Inc. (CSE: AGRA) (PINK: AGFAF) said its joint venture venture with the Houwelings Group — Propagation Services Can read more

Auxly Secures $12M In Financing

Auxly Cannabis Group Inc. (TSXV: XLY) (OTCQX: CBWTF) has secured $12 million in financing. read more