Investors in Aurora Cannabis (ACB) can’t catch a break.
Aurora Cannabis’ stock was rallying at the beginning of this week off of news that the company had licensed their third EU-GMP facility and following a two-month suspension of medical marijuana sales in Germany, its products are once again available for sale.
That rally ended on Thursday…
when shares of Aurora Cannabis started to fall and eventually the stock was halted.
It was then announced that Terry Booth, the CEO of Aurora Cannabis at the time would be stepping down. He will be replaced by Executive Chairman Michael Singer on an interim basis. Booth reportedly will remain on the board.
This news comes less than two months after Aurora Cannabis announced the departure of Chief Commercial Officer Cam Battley, who was viewed as the face of the company and a potential successor to Booth.
This was not much of a surprise to those following Cantor Fitzgerald analyst Pablo Zuanic, who called for further management changes in the form of a new CEO for. Zuanic believes that a new CEO that operates with tighter financial constraints will be able to get Aurora Cannabis back on the correct path and bring confidence back into investors.
It was also announced that the company will cut 500 full-time staff positions which equates to about 17% of its workforce. In the statement they disclosed that in the summer of 2019 it had 2,779 employees, and they had grown their workforce 3,000 workers by the fall.
For the quarter coming up, the company plans to record asset-impairment charges of C$190 million to C$225 million and write-downs of C$740 million to C$775 million. Aurora Cannabis finally said that they would bring capital expenditures under C$100 million for fiscal 2020 in a push towards profitability.
They also mentioned that there would be…
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