EconomyEditor's PickNewsAurora Cannabis Takes Another Hit as Billionaire Advisor Quits

2 years ago495 min
imageStock Markets29 minutes ago (Sep 28, 2020 02:12PM ET)

(C) Reuters

By Christiana Sciaudone — Aurora Cannabis (NYSE:ACB) slipped 5% after billionaire Nelson Peltz quit as advisor.

The news comes days after the company reported weak sales guidance and shares tumbled.

The activist investor resigned as a senior advisor to Aurora Cannabis to pursue other commitments, Bloomberg reported. Peltz, a founding partner of Trian Fund Management, a $9 billion hedge fund, joined Aurora 18 months ago to help the company devise a strategy for the U.S. market, Bloomberg said.

Earlier this month, the company named Miguel Martin as chief executive officer.

Last week, Aurora Cannabis reported that net revenue for the first quarter of 2021 is expected to be between C$60 million and C$64 million, compared to C$67.56 million in the fourth quarter. In the fourth quarter a year earlier, Aurora reported cannabis net revenue of C$94.6 million.

The company expects adjusted gross margin before fair value adjustments on cannabis net revenue to be within a range of 46% to 50% and non-production costs in the low C$40 million range.

Aurora reported a 4.5% quarter-on-quarter decline in fourth quarter net revenue to C$72.11 million.

Shares are down 80% in 2020.

Aurora Cannabis Takes Another Hit as Billionaire Advisor Quits

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