Advertisement

Aurora Cannabis board approves 1-for-12 share consolidation plan

The symbol for Aurora Cannabis appears above a trading post on the floor of the New York Stock Exchange as the Canadian company lists on October 23, 2018.
The symbol for Aurora Cannabis appears above a trading post on the floor of the New York Stock Exchange as the Canadian company lists on October 23, 2018. Richard Drew, The Canadian Press/AP

Aurora Cannabis Inc. says its board has approved a plan to consolidate all of its outstanding common shares on a 1-for-12 basis.

The Edmonton-based cannabis company says the move will keep Aurora in compliance with the New York Stock Exchange’s standards and will provide access to investors, equity capital and trading liquidity.

READ MORE: Aurora Cannabis reports $80 million Q2 loss following layoffs, CEO departure, writedown

The consolidation plan is subject to regulatory and stock exchange approvals and comes as the company says it has $205 million in cash.

Given macroeconomic uncertainty caused by COVID-19, Aurora says it intends to file a new prospectus supplement to enable it to raise additional equity capital, generate balance sheet strength and preserve the company’s flexibility.

Story continues below advertisement

READ MORE: Aurora Cannabis laying off 500 people, CEO to step down

Aurora says it is still committed to reporting modest growth in net revenue between its second and third quarters.

The company is also on track to meet targets it previously set around reductions to costs and capital expenditures, following a layoff of 500 employees and a $1 billion writedown it took in February.

Aurora Cannabis laying off workers, CEO to step down
Aurora Cannabis laying off workers, CEO to step down