Aurora Cannabis falls on capital raise, reverse stock split
FILE PHOTO: The Logo for Aurora Cannabis Inc., a Canadian licensed cannabis producer, is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 8, 2019. REUTERS/Brendan McDermid
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(Reuters) - Aurora Cannabis Inc's (NYSE: ACB) (NYSE: ACB) U.S.-listed shares fell nearly 14% in morning trade 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 U.S.-listed shares were last trading below 80 cents.
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 Inc (NASDAQ: TRST) and James E Wagner Cultivation Corp
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 on Monday with Tilray Inc (NASDAQ: TLRY) down more than 8%, Hexo Corp (NYSE: HEXO) off 5% and Cronos Group Inc (NASDAQ: CRON) and Canopy Growth Corp
(Reporting by Shariq Khan in Bengaluru; Editing by Shounak Dasgupta)
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