Canadian marijuana producer Aurora Cannabis has decided to do a reverse stock split as the company faced a delisting by the New York Stock Exchange for shares trading for less than $1.
Moving forward, Aurora Cannabis will consolidate its shares and investors will receive one share for every 12 they own.
This will reduce the amount of shares from more than 1.3 billion to roughly 110 million, but also issue even more stock, diluting shares more than 30%, according to an analyst estimate.
Shares of Aurora fell 13% on Monday after the news.
The once golden Canadian marijuana company has went from from highs north of $9 in early 2019 to under $1 in recent trading.
It was in February that the company released second quarter financial results.
Net Revenue of $66.6 million, excluding provisions of $10.6 million
Net Cannabis Revenue, excluding provisions, of $63.2 million, In Line With Recent Guidance
Cash Cost to Produce Per Gram Sold of $0.88
Successful Launch of Cannabis 2.0 Products Across Canada
Consumer Cannabis Net Revenue, excluding provisions, Grows at 11% Over Prior Quarter
At the time Interim CEO Michael Singer said, “Despite delivering modest growth in our core medical and consumer business in Q2, we took immediate and deliberate actions to align our Company to current market conditions. As announced last week, being a profitable cannabis company for our investors is the singular near-term focus for Aurora and we have begun to implement a business transformation plan where we intend to manage the business with a high degree of fiscal discipline.”