Over the course of the past year or so, Aurora Cannabis (ACB – Free Report) has been in a fair share of trouble. This week the troubles in the company came out into the open. The marijuana penny stock, which has been struggling with a plummeting stock price and severe liquidity issues, announced that its Chief Executive Officer is going to depart.
Another Setback For This Marijuana Penny Stock
In addition to that, Aurora announced that its credit facility had been reduced significantly. Now, the company has also had to let go of as many as 500 employees.
CEO Terry Booth, who had founded Aurora back in 2013, is going to leave. However, he remains a director on the company’s board. The company has named Michael Singer as the interim CEO. The series of the announcement was not well received by the market, and the stock plunged by as much as 17% in the pre-market session.
Over the course of the past 12 months until today’s close, Aurora stock has lost 76%. Furthermore, from 2019’s high of $10.32, ACB stock is down more than 80%. Among the 500 employees who are going to be laid off, many of them are in corporate positions. Reports suggest that corporate positions are set to be reduced by as much as 25%.
On the other hand, Aurora also announced that it expects a write-down in its goodwill for between C$740 million to C$775 million. The second-quarter financial results are expected to include impairment charges between C$190 million and C$225 million as well. Aurora provided a preliminary update with regards to its fiscal 2020 second-quarter earnings.
The company expects revenues for the quarter to be in the C$62 million and C$66 million range. That represents a decline in revenues from the previous quarter when the company generated revenues of C$70.8 million.
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In this regard, it should also be noted that analysts’ were expecting Aurora Cannabis to generate revenues of C$78.8 million in the quarter. Following a flurry of analyst downgrades, will Aurora be able to recover after this or are new lows in the cards next week?