Aurora Cannabis To Conduct 12 to 1 Reverse Split, Launch New ATM Program

Aurora Cannabis (TSX: ACB) (NYSE: ACB) has given in. It has finally announced that it will be conducting a share consolidation as a result of not meeting NYSE minimum listing requirements. The reverse split will see the company roll back its currently outstanding shares on a 1 for 12 basis.

The share consolidation is to take place “on or around” May 11, 2020. After the consolidation takes effect, the company expects to have approximately 109,457,915 common shares outstanding, a significant reduction from the current figure of 1,313,494,990 common shares.

However, despite the rollback this figure is expected to grow in the near term. Aurora Cannabis announced concurrently that it has completed its US$400 million at-the-market offering, and intends to renew the program. Under the current base shelf prospectus, the company has room for a program up to US$350 million in size for the oncoming fiscal year. Funds raised from the renewed ATM offering are intended to be used for “balance sheet strength” and to “preserve flexibility given macroeconomic uncertainty caused by COVID-19.”

Aurora indicated that the company had approximately C$205 million in cash as of March 31, 2020.

Lastly, the company confirmed that it remains on track with its previously announced cost cutting plan, which includes spending reductions in capital expenditures, and administrative expenses. The company also confirmed that it expects “modest growth” over second quarter 2020 net revenues.

Aurora Cannabis last traded at $0.88 on the NYSE.


Information for this briefing was found via Sedi 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.

3 Responses

  1. So WAIT!! ACB you are suggesting that we all stick around so we can have our stock diluted by 12???

    My investment is only 950 shares this divided by 12 gives me a whopping 79 shares. Makes MORE sense to me to sell now and pick up almost $1k as opposed to waiting for what? 79 shares x $3 = $237! #savage #bye ACB #aurora

    Where is the win in this??

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Aurora Cannabis Tumbles Following Flat Revenues, Wider Net Loss

Aurora Cannabis (TSX: ACB) reported on late Tuesday its financial results for fiscal Q4 2022 ended...

Thursday, September 22, 2022, 03:49:00 PM

Aurora Cannabis: Stifel Lowers Rating To Hold, Price Target Falls To $10.50 From $16

Yesterday, Aurora Cannabis (TSX: ACB) (NYSE: ACB) provided a business update. The firm announced that...

Wednesday, September 9, 2020, 01:47:00 PM

Stifel Downgrades Aurora Cannabis Price Target To $3.60 Based On Liquidation Analysis

This morning, Stifel downgraded their 12-month price target on Aurora Cannabis (TSX: ACB) (NYSE: ACB)...

Wednesday, October 28, 2020, 10:59:00 AM

Aurora Cannabis Reports Revenues Of $75.5 Million For Q3, Doesn’t Provide Net Loss Figure

Aurora Cannabis (TSX: ACB) (NYSE: ACB) reported third quarter earnings after the bell today, electing...

Thursday, May 14, 2020, 04:36:22 PM

Canaccord Lowers Aurora Cannabis Price Target To $5 Following Q2 Earnings

On February 10th, Aurora Cannabis (TSX: ACB) reported its fiscal second quarter 2022 results. The...

Sunday, February 13, 2022, 05:16:00 PM