<![CDATA[Aurora Cannabis stock burned 15 percent on capital raise, reverse stock split]]> https://usagag.com/2020/04/13/aurora-cannabis-stock-burned-15-percent-on-capital-raise-reverse-stock-split/ Mon, 13 Apr 2020 19:29:57 +0000 hourly 1 https://usagag.com Aurora Cannabis stock burned 15 percent on capital raise, reverse stock split Aurora Cannabis Inc.’s US-listed shares fell more than 15 percent in afternoon trading on Monday after the Canadian pot producer renewed an at-the-market offering under which it can raise as much as $350 million in equity capital.

The company said its board also approved a reverse stock split of 1:12 to boost its share price above $1, the minimum required to maintain a listing on the New York Stock Exchange.

Aurora’s US-listed stock was last trading at a price of 74 cents a share.

Companies in the nascent marijuana industry had a rough 2019 and things are worsening this year, with many running out of cash at a time when the coronavirus pandemic has investors on the sidelines across all sectors.

Producers CannTrust Holdings and James E Wagner Cultivation filed for bankruptcy protection two weeks earlier.

Edmonton, Alberta-based Aurora said on Monday it had about C$205 million ($146.8 million) cash as of March 31, including all the money it raised under the original at-the-market offering announced in May 2019.

Shares of other cannabis companies were also down during mid-afternoon trading on Monday with Tilray losing 8.9 percent, Hexo off 4.5 precent and Canopy Growth down 1.2 percent.

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