Canadian producer Aurora Cannabis said it plans to consolidate its shares to restore compliance with Nasdaq's minimum bid price requirements and ensure continued access to a wide range of institutional investors.
Alberta-based Aurora said in a news release Wednesday that it plans to consolidate its outstanding common shares on a one-for-one basis for every 10 currently outstanding common shares, subject to regulatory and stock exchange approvals. announced that the Board of Directors had approved it.
Under the proposed plan, Aurora's outstanding shares would be reduced from 475,903,822 shares to 47,590,382 shares.
Aurora expects the reverse stock split to take effect on or about February 20th.
“We continue to maintain financial discipline, and this reverse stock split deviates from our goal of achieving positive free cash flow this calendar year,” CEO Miguel Martin said in a statement. I don't think it will.”
“Aurora is taking the necessary steps to comply with Nasdaq's listing rules so that we can maintain the financial flexibility necessary to continue pursuing profitable international growth.”
Nasdaq requires a minimum bid of $1 for listed stocks.
The exchange considers a company to be in violation of its buy price rules if its stock price falls below $1 for 30 consecutive business days.
Aurora shares were trading at 38.7 cents on the Nasdaq late Wednesday morning.
Aurora said in its fiscal 2024 update that it still expects to have positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and positive free cash flow in the calendar year.
Aurora is one of a number of cannabis companies currently on Nasdaq's Nonconforming Companies List.
Others include:
Agrify Corp. was added to the Nonconforming List on December 1, 2023 due to stock-related deficiencies. BYND Cannasoft Enterprises was listed in violation on January 5, 2024 due to an incomplete bid price. Clover Leaf Capital Corp. has shareholder-related deficiencies issued on August 31, 2023 and annual shareholder meeting deficiencies from January 23, 2024. Flora Growth Corp. has been deficient since December 5, 2023. Regarding the composition of the audit committee. Greenlane Holdings has been in violation since August 3, 2023 regarding the Nasdaq deficit issue related to the market value of publicly traded stocks, and since August 21, 2023 due to the low stock price. Hempacco Co. is listed as non-conforming due to bid price (April 6, 2023), Audit Committee composition (November 15, 2023) and Annual General Meeting (January 9, 2024) . IM Cannabis Corp. is in violation starting August 1, 2023 due to low stock price. InMed Pharmaceuticals has been in violation since September 19, 2023 due to its stock price. Leafly Holdings was added to Nasdaq's nonconforming list on January 3, 2024 due to deficiencies in the composition of its audit committee.
Matt Lamers can be reached at matt.lamers@mjbizdaily.com.
