There’s bad news for pot stock investors as Aurora Cannabis; the once king of Licensed Producers, recently reported full-year (net) losses of $2.48 billion, according to an article in Barron’s. To add to the company’s slow and steady demise, Aurora is no longer in a leading position in the consumer cannabis market.
On the market, ACB lost C$33.94 per share for fiscal year 2020, much more than the C$17.50, which analysts were predicting. In fact, numbers were terrible all around. As Barron’s reported, “Aurora’s fiscal fourth-quarter revenue hit C$72.1 million. Cannabis net revenue was C$67.5 million. Those figures were down 5% and 3% from the prior quarter. Sales of cannabis to consumers totaled C$35.3 million, down 9% from the third quarter.”
As expected, the company had plenty of write-downs to go around, according to Barron’s. They wrote down goodwill and intangible assets by C$1.6 billion and had fixed-asset impairment charges of C$86.5. Additionally, the once king of weed in Canada had “C$135.1 million charge for the carrying value of some inventory.”
New CEO Miguel Martin tried to put a positive spin on the situation, telling investors that the company is burning through cash at a better rate than it was before, though that may be of little consolation.
“My focus is therefore to re-position the Canadian consumer business immediately,” Martin said, according to Barron’s. “We look to expand beyond the value flower segment, leverage our capabilities in science and product innovation and put our effort on a finite number of emerging growth formats.”
Meanwhile, Dr. Jason Dyck also stepped down from Aurora’s board of directors, and the company stock fell 22 percent to $5.67 on Wednesday.
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