Aurora Cannabis (TSX: ACB) (NYSE: ACB) confirmed last night after the bell that it will be going ahead with its previously announced share consolidation. The consolidation will be effective as of market open on Monday, May 11, 2020.
The share consolidation, which was originally announced on April 13, will see current shareholders receive one share for every twelve shares they held as of the market close on Friday, May 8, 2020. At the time of the announcement the company expected to have 109,457,915 shares outstanding, down from 1,313,494,990 common shares.
The actual figure of shares outstanding as of the Monday open however is slightly unclear, thanks largely to the firm expanding an at-the-market offering to US$650 million, resulting in additional shares being sold on the open market to assist in funding Aurora’s operation. The company did not confirm in its after hours press release how many shares would be outstanding as of the market open on Monday morning.
Given that Aurora, the number one held equity on Robinhood, closed at $0.91 on the TSX on Friday, the equity is expected to open Monday in the area of C$10.92. Undoubtedly, this will confuse several of the firms 990,587 Robinhood shareholders whom will see that their trading account shows the equity as being up significantly. Several twitter pundits as a result are watching to see how the social sentiment plays out.
Aurora Cannabis is set to release its third quarter financial results after the close of markets later this week on May 14, 2020.
Information for this briefing was found via Sedar and Aurora Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
9 Responses
How can they do this and get away with it? How can this be legal??? No kidding! It’s like they stole my money right out of my account!!! I didn’t have a lot of shares, only a couple thousand but now . That’s how they treat loyal investors??? I’m not rich and I’m too heavily invested in the cannabis industry but this just really sucks!!! They stole from me! That’s how I see it! They didn’t have my permission to go into my account and make these changes!!! That’s got to be theft or something! TD WATERHOUSE also didn’t Notify me of this . untill i received my paper statement ….So 12 stocks equal 1 ….that BS. How can canadian government even allow this … James Woodley
I hope the Canadian rules and regulation look into this better,,,, So if you had 12000 shares now you only have 1000 that just wrong….I invested with td waterhouse ..and was not told of this happening , until my monthly statement came in Paper copy. So i believe they should have sold all of the Aurora Cannabis Stock for everyone, 1 dollar for every 12 dollars sorry thats BS. James Woodley very upset
I totally agree. It seems like they have every right and the shareholders that are loyal have no rights. I feel each person who invested should have had a message sent so they had advance notice via their broker / bank so they could decide what to do before their money literally got smoked !!
It is very discouraging.
How can they do this and get away with it? How can this be legal??? No kidding! It’s like they stole my money right out of my account!!! I didn’t have a lot of shares, only a couple thousand but now I’m showing only 183 and I’m further in the hole with them. That’s how they treat loyal investors??? I’m not rich and I’m too heavily invested in the cannabis industry but this just really sucks!!! They stole from me! That’s how I see it! They didn’t have my permission to go into my account and make these changes!!! That’s got to be theft or something!
I just hope I get to break even in the end
This is what you get for investing in bubble / mania stocks. Anyway, the question is will the company survive?
I feel the same as the other shareholders. Standing by you as you spiraled downward and being loyal to your company
ticks me off big time. . No respect for your shareholders. How disappointing.
ditto!
As a faithful and early shareholder of Aurora and having stood by the company through the downward spiral it has experienced, it really pisses me off that I have to read the media to find out what is going on with the company. You would think if you want to keep your shareholders you might want to correspond with them once in a blue moon.