![]() Many producers are now chasing premium flower in order to grab market share.Īurora continues to have a strong market share in Canadian medical marijuana sales, but it has virtually disappeared from the recreational market. Driven by science and innovation, and with a focus on high-quality cannabis products, Aurora's brands. But, he added, that type of product has been largely unsellable in the current environment because there is too much cheap cannabis on the market. Medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co. ![]() ![]() When announcing the decision to close the facility, Aurora chief executive officer Miguel Martin said the site was designed to produce mid-quality cannabis flower. Fawn Creek Township is in Montgomery County. The decision marked a major retreat for Aurora, killing the company’s once-lofty expansion plans. Fawn Creek Township is located in Kansas with a population of 1,618. The strategy included shutting down a flagship production facility in Edmonton, known as Aurora Sky. But Aurora Cannabis ( ACB -3.56 ) is leading the way after it plunged as much as 41. Aurora has never made money, and analysts have struggled to predict when it will start to do so.Įarlier this month, Aurora announced a severe cost-cutting plan aimed at allowing it to turn a profit in the near term. Many cannabis-sector stocks are trading down Friday. It, like many Canadian cannabis companies, has been struggling for years because there is now an oversupply of recreational cannabis. Warrants and stock options derive a good portion of their worth from volatility, because the more volatile a stock is, the more likely it is to hit the strike price.Īurora’s shares have been very volatile, with the stock trading near the strike price as recently as three weeks ago.Īurora declined to comment. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis, dedicated to helping. With Aurora’s latest offering, it is possible hedge funds saw value in the accompanying warrant. Aurora is a global leader in the cannabis industry, serving both the medical and consumer markets. (Short sellers make money when a share’s price falls.) To cover the short, they would buy back the shares by purchasing stock through the financing at the lower new-issue price. Shares of Aurora Cannabis Inc., ACB-T a former star of Canada’s legal weed sector, plummeted another 40 per cent on Friday morning after the company announced an unusual share sale. In one strategy, hedge funds would short the stock of a cannabis company because they expected that a financing was coming at a discounted price. One possible explanation for the disconnect between the investor demand for Aurora’s share sale and its ensuing share-price collapse is the likely composition of buyers in the financing.ĭuring the cannabis boom, hedge funds used such share sales to make short-term bets, The Globe and Mail has previously reported.
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