Activist investor Nelson Peltz has resigned from Aurora Cannabis Inc. ACB just 18 months after being hired as a strategic advisor.
The move comes just days after the Edmonton, Canada-based company reported losing more than CA$3.3 billion ($2.5 billion) in the 2020 fiscal year.
Aurora and Peltz "have concluded their relationship,” an Aurora spokesperson confirmed. “This change is a direct result of Mr. Peltz’s decision to pursue other commitments, and the company appreciates his valuable contributions."
Aurora did not respond to a Benzinga request seeking further comment.
Peltz, who is CEO of New York-based Trian Fund Management, was expected to help Aurora expand globally and better address major cannabis market segments.
Over the last year, Aurora actually "slipped from its top position in Canadian consumer," according to recently appointed CEO Miguel Martin.
Martin is the third CEO Aurora has had in 2020. He was appointed earlier this month in replacement of interim CEO and Executive Chairman Michael Singer following the retirement of Terry Booth in February.
Peltz brought consumer packaged goods expertise to Aurora. After all, his Trian Fund is a multibillion-dollar investment management firm.
The expectation was that, over time, there would be plenty of partnerships and a path to profitability, per a 2019 analyst note.
Wendy's Co., Procter & Gamble Co., Sysco Corp., Madison Square Garden Co., H. J. Heinz Co. and Mondelēz International Inc. are just some of the many companies Peltz has worked with in some leadership capacity.
As chairman and CEO of packaging giant Triangle Industries Inc., Peltz notably orchestrated a $1.3-billion sale to Pechiney SA in 1988.
ACB Price Action: Aurora shares were down 5.53% at $4.78 at the close Monday.
Image via Trian Fund.
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