Aurora Cannabis Inc. shares rose more than 6% Tuesday after being halted for news earlier in the session. The Canadian cannabis producer announced more layoffs and facility closures, saying it expects to report positive adjusted EBITDA by next year. Aurora outlined a sweeping restructuring in February, which included the retirement of Chief Executive Terry Booth and laying off 500 full-time employees, about 18% of its workforce then. On Tuesday, the pot company said it has laid off employees and cut spending on third-party consultants, including cutting its corporate staff by about 25%, mostly immediately, and its production staff by about 30%, mostly over the next six months. The plan also includes closing operations at five smaller facilities within six months in order to focus production and manufacturing at four "larger scale and highly efficient sites," the company said. The closings will lead to impairment charges of up to $60 million in the fourth quarter of 2020, the company said. The company also expects to incur a charge of up to $140 million relating to inventory and near-term demand expectations. Aurora is expected to report fourth-quarter results in early September, it said. Shares of Aurora have lost 42% this year, compared with losses of 3% and 8% for the S&P 500 index and the Dow Jones Industrial Average . Read More...
Aurora Cannabis Inc. shares rose more than 6% Tuesday after being halted for news earlier in the session. The Canadian cannabis producer announced more layoffs and facility closures, saying it expects to report positive adjusted EBITDA by next year. Aurora outlined a sweeping restructuring in February, which included the retirement of Chief Executive Terry Booth and laying off 500 full-time employees, about 18% of its workforce then. On Tuesday, the pot company said it has laid off employees and cut spending on third-party consultants, including cutting its corporate staff by about 25%, mostly immediately, and its production staff by about 30%, mostly over the next six months. The plan also includes closing operations at five smaller facilities within six months in order to focus production and manufacturing at four “larger scale and highly efficient sites,” the company said. The closings will lead to impairment charges of up to $60 million in the fourth quarter of 2020, the company said. The company also expects to incur a charge of up to $140 million relating to inventory and near-term demand expectations. Aurora is expected to report fourth-quarter results in early September, it said. Shares of Aurora have lost 42% this year, compared with losses of 3% and 8% for the S&P 500 index and the Dow Jones Industrial Average .
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