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Gap fill is due:$1.63 to 2.52!, the next move takes ACB closer to 1.60s and then gap fill a significant move to turn this a long term bull!..its coming soon!
For sure. Short Aurora... it was an easy short 4 years ago also
Noooo. In past few years this company owes so much money to shareholders and banks... this will head lower.. my call is on bankruptcy sometime in the future
Hopefully thing things are turned around. The 12% layoff could be explained with the sky facility closing and thrive aquasition. I'm not saying we go down or up after this next earnings, but I do hope we go up.
licensed producer aurora cannabis
SHORTING AURORA AGAIN
BONNOJULY 6, 2022
In 2018, I suggested shorting Aurora. Bad advice, many thought, on the eve of legalization when licensed producer stocks rose.
But the foundation of Canada’s LP system is flawed. In 2022, this is apparent. You made money if you shorted Aurora before the cannabis bubble popped.
The question is now: is Aurora now worth buying on the dip?
Shorting Aurora Again
Aurora Cannabis is one of the worst-performing stocks out there. When I suggested shorting Aurora the first time, the company had announced the acquisition of MedReleaf for over $2.5 billion.
Today, Aurora’s total market cap isn’t even worth that much. Back then, their value was $7.4-billion. Aurora’s market cap in 2022 is $400 million.
Far from being Canada’s number one supplier of cannabis, they are Canada’s biggest LP loser. From billions to millions, Aurora has lost well over 95% of its value since 2018, when I first suggest investors short the stock.
(Shorting stock involves selling batches of stock to make a profit, then repurchasing it cheaply when the price goes down.)
Will Aurora crash even further, or is it time to buy cheap in hopes of a bull market in Canadian cannabis?
European Connections & Homegrown Losses
Shorting Aurora Again
Canada’s small population and relatively small cannabis market do not justify a large number of large producers. So, like in 2018, Aurora sells investors on the potential in Europe. Aurora is one of the few Canadian companies with a licence to grow in Germany.
And with Germany likely to legalize it by the end of the year, this could certainly boost the value of Aurora’s shares.
Regardless of when or how Germany legalizes, Aurora still has problems at home. Its infamous “Sky” facility in Alberta closed its doors despite being hyped as a pioneer in cannabis cultivation just a few years ago.
Aurora also announced net losses of $1 billion in its third quarter. The company’s third-quarter financial and operational results saw a 17% sequential decrease in revenue to $50.4 million.
“If you take a look at the top players in Canada, take a look at where their stock prices are compared to where their all-time highs were, and we’re taking a look at losses 99 cents on the dollar,” says Nawan Butt, Portfolio Manager at Purpose Investments. “It’s all to the determent of the equity holder for the LPs.
And I’m surprised more equity holders aren’t appalled at some of the decisions management have taken.”
Of course, equity holders probably are appalled at Aurora, hence why the company is laying off 12% of its workforce on a plan to cut $90 million in costs.
Shorting Aurora Based on Negative Cashflows
The problem for Aurora Cannabis and many other large LPs is that they’ve never had positive cash flow. Governments and media like to promote Environmental, Social, Governance (ESG) ratings to determine whether a company is “really” profitable. But this obvious woke progressive nonsense.
All that matters is positive cash flow, which is a problem for Aurora. From last July to March this year, Aurora used $83 million to fund its day-to-day operations.
This past June, Aurora raised $172.5 million through offering stock. Investors have every reason to be worried about dilution.
Is it time to short Aurora again? In 2018, Aurora was trading 28 times higher than it should be, considering its earnings before interest, taxes, depreciation, and amortization. Today, Aurora is trading 1.7 times the revenue it earns from selling cannabis.
Canopy is in a worse position, with investors paying 3.6 times revenue.
German legalization may boost their stock performance as Canadian legalization did. But that boost was short-lived because the company’s fundamentals are too risky.
The fundamentals of Canada’s legalization scheme are unsound. Throw an economic depression into the mix (the consequence of excessively low-interest rates, not the “psychology” of the masses), and it’s a perfect storm.
It’s probably time to be shorting Aurora again.
"DE" / 'consultationsprozess cannabis' - live stream / https://www.bundesdrogenbeauftragter.de/cannabis-aber-sicher/
https://www.youtube.com/channel/UCc0jxDa7R3NeqevrBkNjk0w (deutscher Stream)
https://www.youtube.com/channel/UChpAIBBNNEFf4GFFDuUke4w (englischer Stream)
"ntv" tv channel (DE). live "pr" from lauterbach comming in 10 minutes about controlled release of canabis in germany
And none of that has anything to do with the movements of ACB.
It's no wonder your previous prediction was so off base.
Who are the Manipulators, and who are the criminals control all day every day and non stop of fkn up stocks, all kinds of stocks. Well, there is no one person or entity, but numerous of them..!..
take for example this JPM thugs!?...Gold man thugs, the list goes on and on and on, but remember fed, the largest power house that is behind all the manipulations...!. if they want they can make market green or red or whatever the fk direction they wanted to take it to.
Check this:
Explainer-How a massive options trade by a JP Morgan fund can move markets
Stock Markets 1 hour ago (Jun 28, 2022 01:56PM ET)
https://www.investing.com/news/stock-market-news/explainerhow-a-massive-options-trade-by-a-jp-morgan-fund-can-move-markets-2841849
those are legit questions...!
we will re-visit these topics you raised sometime soon, and why it would change will be explained at that time..!!..in the meantime, chill out and wait for the expected (as per my post)..!
That's more great news!
You are saying the 99% drop in price is cause by "manipulators" and not things like:
*) Declining revenue
*) Declining margin
*) Declining market share
*) Billions of write-offs
*) Management lies
*) Focus on phony "adjusted EBITDA" numbers
*) Constant dilution
*) Bonuses based on taking money from shareholders
Why do "things got to change"?
Read my post again, it has the answer, the whole fkn sector is constantly, consistently crashed down by so many manipulators.....everything has a limit and things got to change..!.
Aurora Cannabis and the entire sector breakout alert!!
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169257170
ACB was never worth as much as it was on the day of Canadian legalization... a huge milestone pumped by Aurora.. insiders quickly sold off making tons of profit at the peak. Who bought these shares? The deceived...
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=144452321
Yep. Have to have the grace periods to pump it for executives to get out and leave the bag holders behind.
30 consecutive trading days with a closing bid price under $1
Then they get up to two 180 day grace periods.
They have to do a reverse split to stay on the nasdaq if this goes below $1 for any length of time. I think the rules are 1 month.
I see they have a few insiders purchasing shares. Might be a little too late, but I guess better than never.
every dog has its day.......next couple months gonna get interesting .
LP,s will sell a safe product... not!
Outbreak by Organigram
LAWS PASSED IN NEW BRUNSWICK AFTER ORGANIGRAM OUTBREAK
TRAVIS CESARONEJUNE 7, 2022
To Bonno
Sixteen people fell seriously ill with a severe form of pneumonia in 2019 and one man died. New Brunswick Health shelved any response to the outbreak caused by Organigram for months before laws finally passed.
An Outbreak Caused by Organigram Cooling Facility
In the beginning, the Health Ministry disregarded Organigram’s infectious cloud. The bacteria that did spread across Moncton, New Brunswick originated from a cooling tower atop a new section of the licensed cannabis producer’s warehouse. The tower contains a fan and water, which grew excessive quantities of Legionella bacteria — external of the facility.
And while OGI admitted to fault one-a-half years later, in December of 2020 — Legionella tests had yet to be mandated. Responding to international criticisms in September 2021, though, New Brunswick’s Minister of Health, Dorothy Shephard announced that mandatory testing would be put into force by this Spring.
One correspondence and two new laws
Mandates were first announced this Spring — eight days after Minister Shephard replied to thank this author for an email. Cited in the correspondence was a recent peer-reviewed study published in the Journal of Alzheimer’s Association. (1) Unrelated to Legionella, the email documented a potential link between research pursued by OGI and a separate epidemic that NB Public Health spent two years investigating.
Unusual neurological ailments occurred across New Brunswick from 2019 to 2021. Causing a false alarm, the cases were misdiagnosed as a single unknown disease. Albeit no proof has been released, the potential link sent to Minister Shephard correlated research pursued by OGI with a hypothetical Alzheimer’s Disease outbreak. And according to autopsies, most of the unusual neurological cases included known ailments such as Alzheimer’s Disease.
Outbreak by Organigram
Some cases identified in New Brunswick between 2019 to 2021 were considered simple misdiagnoses in the final report. The location of OGI, a Moncton-based producer, is highlighted in red.
Bill 104
Separately, an additional amendment to the Public Health Act in New Brunswick was introduced on May 10 this year. Covering emergencies beyond just the Organigram outbreak, the law under Bill 104 passed the third reading on June 2, 2022.
During the pandemic, mandates had to be placed on individuals rather than buildings or businesses. A virtue for gym owners providing a haven from mask restrictions. At the same, negligent companies responsible for outbreaks were given a curtain of protection. New revisions to the act under Bill 104, therefore, intend to rip down that curtain. Now, powers previously only granted under the Emergency Act can be used by the Health Minister during any serious health emergency.
Public Health Officers will be allowed to force specific businesses or buildings to follow mandates — or shut down — in the event of a future unsolved outbreak. And while Covid-19 outbreaks are covered, the new revisions are generalized for any public health emergency. Interestingly, Bill 104 can be used if Legionnaire’s or an unsolved neurological disease continues to spread throughout the province, for example.
Let us know in the comments what you think caused the neurodegenerative diseases. And don’t forget to read more about the potential link between Organigam and an Alzheimer’s Disease outbreak.
Show your work
Tau proteins, which are tran-seeded by prions found in Saccharomyces cerevisiae, only aggregate Alzheimer’s Disease.
Accumlation of tau in genetically predisposed individuals leads to Alzheimer’s onset after approximately six years. (3)
Parkinson’s and Lewy Body Dementia, also noted in GNB’s final report, are caused by different proteins, such as beta-amyloid and alpha-synuclein.
Yeast can be genetically engineered to produce both proteins for researching neurodegenerative diseases and cell death. (4) This induces cytotoxicity, although to use this yeast model as a control in the R&D phase of cannabinoid production would be unorthodox.
Sources
Bonno, Flach, M., Leu, C., Martinisi, A., Skachokova, Z., Frank, S., Tolnay, M., Stahlberg, H., & Winkler, D. T. (2022). Trans-seeding of Alzheimer-related tau protein by a yeast prion. Alzheimer’s & dementia : the journal of the Alzheimer’s Association, 10.1002/alz.12581. Advance online publication.
Communication with The Honourable Dorothy Shephard. March 21, 2022.
Guzmán-Vélez E, Diez I, Schoemaker D, et al. Amyloid-ß and tau pathologies relate to distinctive brain dysconnectomics in preclinical autosomal-dominant Alzheimer’s disease. Proc Natl Acad Sci U S A. 2022;119(15):e2113641119. doi:10.1073/pnas.2113641119
Sampaio-Marques B, Bonno, Felgueiras C, Silva A, et al. SNCA (a-synuclein)-induced toxicity in yeast cells is dependent on sirtuin 2 (Sir2)-mediated mitophagy. Autophagy. 2012;8(10):1494-1509. doi:10.4161/auto.21275
Lawsuit? ACB management are experts at fleecing the shareholders and then telling them how good it is for shareholder value. lol
What they say: Great cash balance
What they mean: Thank you shareholders for the cash DILUTE DILUTE DILUTE
What they say: Adjusted EBITDA positive in the future
What they mean: We hope enough shareholders are dumb enough to care about this bogus measurement DILUTE DILUTE DILUTE
What they say: We want to increase shareholder value
What they mean: We don't give a damn about shareholders. DILUTE DILUTE DILUTE
It's a drop in the bucket but at first glance Chitwant Kohli purchased shares yesterday. ?Not given? I'm at work right now but someone might be able to see if he really did purchase vs given these shares.
Yeah, I was a bit pissed off when I read "general purpose" myself. Hopefully we find out the real use for this cash soon so all these assumptions get cleared up... ugly or not ugly. If this really is for bonuses I have a hunch lawsuit will follow, but not sure if they have enough of a case to win or settle out of court.
Don't forget they are aided by those who say things like:
*) Don't believe the numbers, believe what management tells you to believe
*) Sins of the past are gone
Too funny
Wall St. has perpetrated (upon naive mj stoners) one of its' greatest Pump And Dumps.
https://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=acb&x=39&y=17&time=100&startdate=2%2F4%2F2015&enddate=6%2F21%2F2022&freq=1&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=2&style=320&size=3&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11
.
Its a common theme with all of the Canadian LP's. They are burning through cash at an alarming rate, yet the execs/directors are still getting paid as if they are Fortune 500 companies. I really dont understand it. It really is a criminal enterprise.
Can't expect much less out of liberals. Always promising the pie in the sky but secretly stealing your money and putting it in their families pockets. Trudeau is a loser. There are plenty of Republican and conservative pot smokers. But no one ever talks about that.
No surprise.
The amount of cash they appear to need on hand to guarantee their bonuses looks to be about $450M USD. That is the money they claim is "strategic." The strategy is to make sure they get the bonuses.
They are in the 4th fiscal quarter now and probably must have the $450M at the end of the quarter for their bonuses. The amount they diluted the shareholders for was about the amount of cash they burned last quarter and are projecting to need this quarter. That's why the claimed it was for "corporate purposes."
So they get their bonuses. The naive bagholders get the shaft.
The song remains the same.
What a disaster this stock has been.
WOWSA, what a haircut! I have been passively watching ACB off and on for sometime, but I have to admit this surprised me.
"Listen to the CC to help understand the numbers and press releases to make your own decisions!"
How'd that work out? Please show everyone where the CEO mentioned he was about to take the bagholders to the woodshed again? You know this deal was in process when the call happened. This gave friends of the company time to short the stock knowing they could buy it back for a much lower price.
Management is bonused on the cash position, not the sale of cannabis.
Their claim of "enhancing shareholder value" means that as long as management keep their pay and bonuses, the shareholders (aka bagholders) should be happy.
But, it's all good. They will be "adjusted EBITDA positive" sometime in the future. RIght?
I can't wait to see the excuses for the latest rape of the bagholders.
What happened to the claim that they had plenty of cash?
The main business of this company is not selling cannabis, it is selling shares.
Aurora Strengthens Leadership Position in Germany with EU-GMP Certification at Preeminent Local Cannabis Production Facility
7:05 AM ET 5/18/22 | Dow Jones
State-of-the-art facility readying first delivery of medical grade cannabis for German patients
EDMONTON, AB, May 18, 2022 /CNW/ - Aurora Cannabis Inc. (the "Company" or "Aurora") (NASDAQ: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, announced today the company has received EU-GMP certification for its state-of-the-art medical cannabis production facility in Germany. As a leading manufacturer of medical cannabis worldwide, achieving EU-GMP certification of the company's first German manufacturing site marks a significant milestone in the fulfillment of an awarded tender by the German Federal Institute for Drugs and Medical Devices (BfArM). Aurora is the distinct market leader in the German flower segment and will now leverage receiving the world's highest quality standard to produce and distribute premium medical cannabis in Germany.
The new state-of-the-art production facility in Leuna, Saxony-Anhalt, Germany adds to the company's pan-European network of EU-GMP facilities supplying premium, high-quality cannabis flower and extracts for medical use by patients across existing and expanding markets. Germany's medical cannabis market currently serves approximately 100,000 patients, representing only 0.1% of the population. In mature medical cannabis markets like Canada, market penetration is upwards of 1%, therefore the German market has significant potential for growth.
"With the EU-GMP certification of our first German site, we once again demonstrate Aurora's excellence and leadership in establishing the necessary infrastructure to compete in the global cannabis market," said Miguel Martin, CEO of Aurora Cannabis. "As a leading provider of medical cannabis in Germany and several other European markets, we are eager to accelerate patient access to high-quality, reliable cannabis produced in accordance with the most stringent criteria. Our first shipment from our world class Leuna facility will deliver on our commitment to the German regulatory authority and expanding patient base, a significant step in our ongoing commitment to international market growth."
Aurora was awarded a tender/contract in 2019 by the German Federal Institute for Drugs and Medical Devices (BfArM) for the annual production of 1,000 kg of high-quality medical cannabis flower over a period of four years. Despite numerous challenges due to ongoing pandemic-related restrictions and international supply chain bottlenecks, the construction of Aurora Leuna, a nearly 3,600 sq. metre production site is complete, has received its EU-GMP certification and is preparing for the inaugural shipment. The first shipment from Aurora Leuna to German pharmacies is expected via the state's cannabis agency later this month.
Martin continued "As a leading provider of cannabis flower and extracts in Germany, we are excited by the possibility of growth in the market. Our investment in domestic production with the highest quality standards will help advance patient access to high-quality cannabis. I congratulate our team in Germany on achieving this important milestone for our Leuna facility and the commencement of local production in this critical market."
As a leading global cannabis company with a footprint on four continents, sales into 12 countries, and an expansive international production network, Aurora celebrates this important milestone in the company's pursuit of enabling access to high-quality medical cannabis to patients worldwide.
About Aurora
Aurora is a global leader in the cannabis industry, serving both the medical and consumer markets. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis, dedicated to helping people improve their lives. The Company's adult-use brand portfolio includes Aurora Drift, San Rafael '71, Daily Special, and Whistler, as well as CBD brands, Reliva and KG7. Medical cannabis brands include MedReleaf, CanniMed, Aurora, Whistler Medical Marijuana Corp., and Pedanios. Driven by science and innovation, and with a focus on high-quality cannabis products, Aurora's brands continue to break through as industry leaders in the medical, performance, wellness and adult recreational markets wherever they are launched. Learn more at www.auroramj.com and follow us on Twitter and LinkedIn.
Aurora's common shares trade on the NASDAQ and TSX under the symbol "ACB" and is a constituent of the S&P/TSX Composite Index.
Forward-looking Information
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements made in this news release include statements regarding the production and distribution of premium medical cannabis in Germany, timing for the first shipment of cannabis from the Aurora Leuna facility to German pharmacies, competitive advantages including those related to EU GMP certification, and the Company's execution against its commitment to the German Federal Institute for Drugs and Medical Devices (BfArM). .
These forward-looking statements are only predictions. Forward looking information or statements contained in this news release have been developed based on assumptions management considers to be reasonable. Material factors or assumptions involved in developing forward-looking statements include, without limitation, publicly available information from governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which the Company believes to be reasonable. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of our products, customer experience and retention, the development of third party government and non-government consumer sales channels, management's estimates of consumer demand in Canada and in jurisdictions where the Company exports, expectations of future results and expenses, the risk of successful integration of acquired business and operations, management's estimation that SG&A will grow only in proportion of revenue growth, the ability to expand and maintain distribution capabilities, the impact of competition, the general impact of financial market conditions, the yield from cannabis growing operations, product demand, changes in prices of required commodities, competition, and the possibility for changes in laws, rules, and regulations in the industry, epidemics, pandemics or other public health crises, including the current outbreak of COVID-19, and other risks, uncertainties and factors set out under the heading "Risk Factors" in the Company's annual information form dated September 27, 2021 (the "AIF") and filed with Canadian securities regulators available on the Company's issuer profile on SEDAR at www.sedar.com and filed with and available on the SEC's website at www.sec.gov. The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
View original content to download multimedia:https://www.prnewswire.com/news-releases/aurora-strengthens-leadership-position-in-germany-with-eu-gmp-certification-at-preeminent-local-cannabis-production-facility-301549911.html
SOURCE Aurora Cannabis Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2022/18/c8136.html
/CONTACT:
For Media: Michelle Lefler, VP, Communications & PR, media@auroramj.com; For Investors: ICR, Inc., Investor Relations, aurora@icrinc.com
Copyright CNW Group 2022
> Dow Jones Newswires
May 18, 2022 07:05 ET (11:05 GMT)
Aurora Cannabis
@Aurora_MMJ
·
20h
Replying to
@Aurora_MMJ
The certification of Aurora Leuna marks a significant milestone in the fulfillment of a BfArM tender for the annual production of 1,000 kg of high-quality medical #cannabis flower over four years. The 1st shipment is expected via the state's cannabis agency later in May.
May be so, i would.not know. What troubles me a bit is a couple.or.more earnings ago he said sky running at 25% covered the cost to keep it open.
Yes, and besides, Canada is a costly place to grow good cannabis.
Too cold...
When Africa rises North America will tremble!
High end weed takes all the same effort to grow not so high end weed.
To me this sounds like bunk.
It doesn't cost a penny more to clone high-end weed.
This sounds a lot like selling fishing lures to fishermen.
Nice and colorful. I too had my jaw drop to the floor when I read about sky. When I listened to the CC, and how they said it takes too long retooling, I'm not convinced if it's the management of the building or if it really is the cost to retool. If you also read between the lines as well as complaints over the years, Canada's government made too much red tape for exports, which, IMO, is why they have all these satellite locations in some places around the world to produce in other places. It really does suck, but makes sense. The right down is the sins of the past which is Morgan Stanley didn't figure that in. Also, in the CC, it sounds like sky could not produce THC levels high enough, which is like you said, didn't sell the volume. The premium brands that are selling he said are moving to their other facilities. They are now looking at a higher end of 150M in savings vs 60 to 80. This is probably why the stock is going up as one of the analysts was pretty excited about that as it's well past just being ebita positive if such happens.
Some Aurora data for all bag holders
AURORA CANNABIS $1 BILLION NET LOSS
CALEB MCMILLANMAY 15, 2022
To Bonno
Aurora Cannabis has announced net losses of $1 billion in the third quarter. They will be closing their Aurora Sky facility in Edmonton and two others in British Columbia.
Aurora says the move is an effort to make the LP “a leaner, more agile organization.”
The Aurora Sky facility is where Aurora employs 13 percent of its workforce. Aurora spokesperson Kate Hillyar declined to share how many people that included. Expect the facility to close by the third quarter of 2023.
The two BC facilities are Aurora Anandia and Whistler Alpha Lakes. Expect both to close by the end of the year.
How Did This Happen?
Aurora Cannabis is one of Canada’s largest LPs, so how exactly do they post a net loss of $1 billion?
Miguel Martin, Aurora’s chief executive, told analysts that the company suffered from excess inventory and fierce competition.
"Excess inventory". Read : bunk stays on shelves.
"Fierce competition". Read : Legacy kicks ass.
He called the market “irrational” but said, “We expect the recreational market in Canada to correct. When that process is complete, we will have added opportunities for market share and pricing.”
Correct for what? Read: Police will try to arrest their way through legacy.
In other words: we created this speculative market, we’re successfully weathering the storm, and once the market correction comes, we’ll be one of the few LPs left supplying Canadians with cannabis.
Aurora Cannabis Pulls a Hammer Time
Aurora Cannabis $1 billion
Aurora Cannabis losing $1 billion comes as no surprise. The company was never selling cannabis, according to one anonymous insider. “They were always just selling equity to bag holders.”
And nowhere is this more evident than Aurora Sky, their Edmonton grow facility that costs the company $7 million per quarter.
What ever happenned to scale?
The facility, designed to be a sea of green, was where computers and machines would automate everything. Giant cranes would handle the plants. No human hands needed to touch the cannabis.
But then consumers started buying the products. And they wanted premium brands and were willing to pay for them. Few wanted the mass-produced generic flower Aurora designed Aurora Sky for.
Aurora Sky is the equivalent of MC Hammer’s house. For those too young to remember, MC Hammer was a hip-hop artist in the 1980s. Successful beyond his wildest dreams, he bought a mansion to go with his fame. The house created headlines because, in the 1980s, spending $20 million on a home was unheard of.
But as MC Hammer’s hip-hop style dived in popularity, so did his album sales. And within a few years, he was declaring bankruptcy. Unable to afford the 40,000 sq ft house with Italian marble floors, a bowling alley, recording studio, two swimming pools, a movie theatre, tennis courts, a baseball diamond, and a 17 car garage.
Sound like a few cannabis company we know? One that hyped up its Aurora Sky facility. Even when the building was merely a concrete foundation on the eve of legalization?
Booth Makes Out Like A Bandit
Aurora Cannabis $1 billion
Terry Booth is an Edmonton electrician turned pot investor. Booth co-founded Aurora with $2.5 million of his own cash. Needing that kind of start-up capital shows what kind of legalization scheme the Trudeau government had created.
Booth never wore a suit to meetings. He was a workingman’s CEO, or at least that’s the image ascribed to him. A former employee says, “[A]s far as him being the CEO of a multi-billion-dollar company, you really got the feeling that was thrust upon him.”
Terry Booth resigned from Aurora in early 2020. The year prior hadn’t been good for the company. Aurora laid off a significant chunk of its employees, closed several facilities and saw its valuation drop by $1 billion.
Booth is now CEO of Australis, a Massachusetts-based cannabis investment firm. Like many other LP executives who inspired the Canadian market with false (some would even say fraudulent) confidence, he’s cut and run to the US.
Meanwhile, Aurora continues to lose money. “Aurora Cannabis posts a net loss of $1 billion” is becoming a typical headline.
The idea is that Aurora can afford to sell at a loss while the craft producers can’t. Over time, this leaves only the top LPs. This is the legacy of Terry Booth’s Aurora Cannabis and Justin Trudeau’s legalization scam.
Poor quality at a premium price nobody wants.
Nice green day! Morgan Stanley sees things as a break even as not looking at the sins of the past management, so taking that impairment out shows the true strengths. It really sucks sky is being sold off, hopefully with all the shortages we get a good price. As for Isreal, sounds like that is saturated now, so probably not anything soon(my opinion) but because we are growing, things are settling out. Awesome to see Australia's growing very strong and we are going above and beyond the cost savings. Listen to the CC to help understand the numbers and press releases to make your own decisions!
More declines:
Revenue down
Q3 2022 total cannabis net revenue was $50.4 million, down 17% sequentially.
"Adjusted" EBITDA worse than last quarter
Adjusted EBITDA loss declined to $12.3 million in Q3 2022 versus $9.0 million
https://investor.auroramj.com/news-and-events/press-releases/123011/
It just might take a quick drop to the $1.70s here soon.
If it's quick, I will be in for a trade. If it just keeps shedding it may never stop..
I remember 4 years back when the marijuana euphoria was in it's prime and this among other pot stocks were being pumped like no tomorrow and now look at this thing after a zillion for 1 stock split.
Why the "adjusted EBITDA positive" that ACB management has been touting for years doesn't matter, (from Uber):
"We have made a ton of progress in terms of profitability, setting a target for $5 billion in Adjusted EBITDA in 2024, but the goalposts have changed. Now it’s about free cash flow."
Even they recognize that the fiction of the phony "adjusted EBITDA" has been unmasked. There is no definition of "adjusted" so companies can make up whatever they want.
Free cash flow? Not with ACB. They get all their cash by selling shares. When ACB boasts about their balance sheet cash, they forget to mention it is all from selling shares, not product.
So here is the closing. I was never overly excited when they made this purchase. 12 people lost their job, so my guess is the license and land itself was the expense. Now we can sell it.
https://stratcann.com/2022/05/07/aurora-cannabis-closes-down-their-200-acre-bc-farm/
And as for the 180 acre property we just picked up(why the above is no longer needed).
https://thrivecannabis.ca/
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