Canadian cannabis giant Aurora yesterday announced plans to enact a 1:10 stock consolidation in order to avoid delisting from the NASDAQ stock exchange.
In March 2023, Aurora received a warning from the exchange that its share price had fallen below the minimum bid price requirement of $1 for more than 30 days.
Initially it was given until September 20, 180 days, in order to regain compliance, which required its share price to come above $1 for at least 10 days.
While its share price rallied in early September on the news that the federal rescheduling of cannabis had been recommended by the HHS, topping $0.98, Aurora failed to bring its share price back above the $1 threshold.
Now Aurora is understood to be planning a share consolidation, reducing the 475,903,822 common shares it has in circulation to 47,590,382, this artificially boosting its share price.
The move has reportedly been approved by the company’s board of directors, and ‘subject to the required regulatory and stock exchange approvals’, will take effect ‘on or about February 20’.
“We will continue to exercise financial discipline, and do not see this share consolidation as a distraction from our target of delivering positive free cash flow1 this calendar year,” said Miguel Martin, Chief Executive Officer of Aurora.
“Aurora is taking the required steps to comply with Nasdaq’s listing rules so that we can maintain the financial flexibility needed to continue our pursuit of profitable international growth.”
The announcement came as the company announced that it would host its Q3 investor conference call on February 08, and that it remains confident of posting a positive EBITDA for the 2024 fiscal year.
It joins a slew of other NASDAQ listed cannabis companies currently in breach of its minimum bid-price requirements, including Akanda, Agrify, IM Cannabis and Leafy Holdings.
