We are investigating Aurora Cannabis Inc. (ACB) (“Aurora” or the “Company”) for potential violations of the federal securities laws.
On November 14, 2019, post-market, Aurora issued a press release reporting its financial results for its first fiscal quarter of 2020. Among other things, Aurora reported a 24% sequential decline in revenues compared to the fourth fiscal quarter of 2019. Aurora also announced that it was offering early conversion to holders of convertible debentures due in March 2020, ceasing construction of a facility in Denmark, which was expected to save approximately $80 million over the next 12 months, and deferring construction of a facility in Canada in order to conserve approximately $110 million of cash. Discussing Aurora’s financial results on an earnings call that same day, the Company’s Chief Executive Officer stated that during the summer, distributors had “stocked their shelves to the limits,” which had “affected the next quarter in which they didn’t buy as much.” Additionally, Aurora’s Chief Corporate Officer stated “[w]hat we’re seeing is that we obviously moved an awful lot of product in the previous quarter and so it takes time for them to work through the inventories.” On this news, Aurora’s stock price fell $0.56 per share, or 17.02%, to close at $2.73 per share on November 15, 2019.