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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.