In a detailed description of Aurora’s 2020 (non?) efficiency amongst different issues they are saying…. What a firm! What a mess.

If Aurora Cannabis has taught buyers something, it’s that low cost shares are normally low cost for a motive. We’ve additionally realized that not all shares in a high-growth business might be winners.

Aside from persevering with to dilute its shareholders at a rare tempo, poor choices by administration have additionally proved how little they care about their investors.

In fiscal 2020, Aurora Cannabis reported a CA$3.Three billion internet loss, which was magnified by greater than CA$2.Eight billion in writedowns and impairment prices. While a few of these prices had been tied to the closure of the corporate’s smaller cultivation amenities and to layoffs, most relate to the corporate’s grossly overpriced acquisitions.

For instance, Aurora paid a jaw-dropping CA$2.64 billion in an all-share deal to accumulate licensed producer MedReleaf in 2018. The expectation when this deal closed was that MedReleaf would assist 140,000 kilos of annual marijuana manufacturing. Ultimately, Aurora offered the Exeter facility (which was by no means retrofit for pot manufacturing) for a meager CA$8.6 million. It was anticipated to yield 105,000 kilos of the 140,000-kilo estimate. The smaller Markham facility (7,000 kilos a 12 months) additionally bought the ax. Aurora successfully paid a internet of CA$2.63 billion for 28,000 kilos of annual output and a handful of proprietary manufacturers. Decisions like this have doomed the corporate’s shareholders.

Management additionally received hefty pay raises in 2020 for assembly a number of the firm’s key efficiency indicators for the 12 months. That’s proper — as Aurora’s future stays doubtful and the corporate continues to promote its personal inventory on the detriment of shareholders to lift capital, it’s elevating its executives’ pay.

What a firm! What a mess.

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