Aurora Cannabis Inc Gets Smoked After Announcing Share Offering – FX Empire

Aurora Cannabis Inc. (ACB) plunged 7.71% Wednesday after the Canadian-based marijuana company announced it plans to sell more shares for growth opportunities, working capital, and other corporate activities. Under the proposed $125 million capital raising, Aurora expects to sell each new share for $7.50 with an attached warrant that allows the buyer to purchase another share for $9 within 40 months of the close date. However, the company said final terms would be finalized at the time of pricing.

Since the Nov. 3 U.S. presidential election, the stock has been on a high in anticipation of a cannabis-friendly Biden administration and reporting quarterly sales that came in well ahead of expectations. While the company’s fiscal Q1 revenue of $52.2 million declined 10% from a year earlier, the figure comfortably topped Street forecasts of $48.9 million. Moreover, Aurora said it expects to reach positive adjusted EBITDA next quarter.

As of Nov. 12, 2020, the stock has a market capitalization of $1.23 billion and trades up a massive 73% over the past week. Despite the recent surge, the shares have tumbled 70.45% year to date (YTD).

Wall Street View

Earlier this week, Cantor Fitzgerald’s Pablo Zuanic lowered his price target on the stock to C$12 from C$13 but reiterated the firm’s Neutral rating. The analyst cited disappointing Canadian recreational and medical cannabis Q1 sales along with a