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.
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.
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.