Cannabis On The NASDAQ? No Problem: A Look At Aurora's Positive Cash Flow Strategy, Agrify's Equity Boost

Aurora Cannabis Inc. ACB ACB, a major cannabis company, is sticking to its previous financial predictions. Management believes the company will make more money than it spends over the year, achieving positive annual adjusted EBITDA, and also expects to have more cash coming in than going out in 2024, generating positive free cash flow.

Aurora has also announced a share consolidation strategy. This plan involves consolidating Common Shares at a ratio of 1 for every 10 currently outstanding, effective around February 20, 2024.

This move aims to meet Nasdaq's Minimum Bid Price Requirement, ensuring continued access to a broad base of institutional investors.

CEO Miguel Martin noted: "We will continue to exercise financial discipline, and do not see this share consolidation as a distraction from our target of delivering positive free cash flow this calendar year".

"Aurora is taking the required steps to comply with Nasdaq's listing rules so that we can maintain the financial flexibility needed to continue our pursuit of profitable international growth," added Mr. Martin in a press release.

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Agrify Secures Nasdaq Listing Through Innovative Financing

Agrify Corporation AGFY, known for its cutting-edge cultivation and extraction solutions in the cannabis industry, has successfully secured its spot on The Nasdaq Capital Market.

Following a formal hearing on January 11, 2024, the Nasdaq Hearings Panel granted Agrify an extension until April 15, 2024, to demonstrate compliance with the stockholders’ equity requirement.

Through strategic financial maneuvers, including debt conversion and equity issuance led by CEO Raymond Chang and board member I-Tseng Jenny Chan, Agrify has fortified its equity position.

Agrify reported approximately $3.9 million of debt was converted into equity at a significant premium, with an additional $1 million in debt forgiveness, contributing to an improved stockholder equity position and compliance trajectory.

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