2.4400 0.00 (0.00%)
After hours: 5:12PM EST
|Bid||2.4300 x 41800|
|Ask||2.4500 x 29200|
|Day's Range||2.4200 - 2.5200|
|52 Week Range||2.1400 - 10.3200|
|Beta (3Y Monthly)||1.97|
|PE Ratio (TTM)||11.30|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Deadline Reminder: Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Aurora Cannabis Inc.
CALGARY , Dec. 5, 2019 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (HITI.CN) (HITIF) (2LY.F), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, today announced that it has closed the second tranche (the "Second Tranche") of the sale of unsecured convertible debentures (the "Debentures") of the Company under the private placement (the "Offering") previously announced on November 14, 2019 . Gross proceeds from the Second Tranche were $2,115,000 .
SAN FRANCISCO, CA / ACCESSWIRE / December 4, 2019 / Hagens Berman urges Aurora Cannabis Inc. (NYSE:ACB) investors who have suffered losses in excess of $200,000 to submit their losses now to learn if they ...
NEW YORK, NY / ACCESSWIRE / December 4, 2019 / The securities litigation law firm of The Gross Law Firm issues the following notice on behalf of shareholders in the following publicly traded companies. Shareholders who purchased shares in the following companies during the dates listed are encouraged to contact the firm regarding possible Lead Plaintiff appointment. A class action has commenced on behalf of certain shareholders in ADTRAN, Inc. The filed complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: (1) there were material weaknesses in the Company's internal control over financial reporting; (2) as a result, certain E&O reserves had been improperly reported; (3) as a result, the Company's financial results for certain periods were misstated; (4) there would be a pause in shipments to the Company's Latin American customer; and (5) as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
There has been a lot of hype concerning what has been dubbed Cannabis 2.0 in Canada, as the country legalized a variety of derivatives that are expected to boost revenue and earnings of companies successfully navigating the new waters.The first thing to keep in mind concerning Cannabis 2.0 is that even though it went into effect in Canada in October, a required 60-day notice sent to Health Canada announcing intent of companies to sell the derivatives means they won't be allowed to start selling until the last couple of weeks of December. That means there won't be a lot of impact or feedback on the potential of derivative products until the end of the first calendar quarter of 2020.Another thing to take into account is with the legalization of recreational pot in Canada in 2018, it only included legal sales of sprays, oils, and dried flower. With the launching of Cannabis 2.0, it includes vapes, edibles (like chocolates, cookies and gummies), and infused beverages like juices and beer, among other product lines.Over time, this should produce a significant increase in revenue and earnings because of wider margins associated with these products.A key thing to consider here is that the introduction of legal recreational pot sales in Canada appealed to long-term cannabis users. With the advent of new consumption options, it should attract new users that weren't comfortable with the way illegal pot had been consumed, even though it has been legalized.While it'll take time to prove my thesis, I think edibles will probably be the largest contributor to the improved performance of Canadian cannabis companies, including the big three being covered in this article.In this article we'll look at the three largest cannabis producers in Canada, and what to expect from them in regard to the potential impact on their top and bottom lines.Aurora Cannabis (ACB)As with most cannabis companies, Aurora Cannabis has been under enormous pressure since early 2019; that's especially true of companies competing in Canada, because of the low number or retail outlets to sell their product out of. That's changing, but it'll take time for enough stores to open to make a big difference in the performance of Aurora.Consequently, the company has halted construction on a couple of its facilities until there are enough stores opened that can meet demand. The overall issue hasn't been too much supply, but not enough places to sell legal pot out of.For that reason, the black market continues to thrive in Canada, and will until legal outlets provide more competition.As Aurora starts to sell its line of derivatives, and the number of stores grow, it'll have a strong impact on revenue and earnings.Concerning production capacity, it can quickly finish off its facilities and ramp up capacity to over 700,000 kilograms annually. Based upon its existing assets, it could do more than that if demand justifies it.I believe as demand grows for derivatives, the market will want reliable and consistent sources of supply in order to have predictable product available at the retail level. Aurora will be one of the leaders in that regard. (See Aurora stock analysis on TipRanks)Canopy Growth (CGC)Canopy Growth has the potential to reach production capacity of a little over 500,000 kilograms annually, and so is well positioned to capture meaningful market share of the Canadian cannabis derivative market.A concern with Canopy remains its lack of a permanent CEO, which to me has resulted in a lack of focus, which has produced weak results. For example, it made a poor decision in relationship to what types of CBD oils to sell, which didn't perform near to expectations in the latest quarter.The big mistake made by Canopy in the first couple of quarters after recreational pot legalization in Canada was that consumers preferred to go with softgels and oils. The thinking was because many medical cannabis users preferred those means of consumption, so would recreational users. The company was wrong. Product returns and huge discounts on recreational oils has resulted in hot of over C$40 million over the last couple of reporting periods.Assuming Canopy can get its act together, it does have the production capacity base to take some market share in derivatives, but it has to make decisions based upon much more accurate research and data in order to improve its performance.The idea of it having a lot of cash to back it up is getting old; after all, how much has it helped its performance so far? Being able to survive longer than many of its peers is much different than growing and taking market share on a sustainable basis. (Discover how the overall price target for Canopy breaks down on TipRanks here)Aphria (APHA)Aphria, the third-largest Canadian cannabis company as measured by production capacity, will be able to, with the combination of Aphria One, Broken Coast, and Aphria Diamond, produce up to 255,000 kilograms of cannabis annually.With that capacity, it could generate up to $700 million of sales in fiscal 2020.With most of its performance coming from non-operational sources, the company has yet to prove it can be profitable from cannabis sales alone. For that reason, it's not as strong as has been suggested in the financial media, and needs to show stronger operational results in the quarters ahead.Aphria does have a strong balance sheet of cash and cash equivalents of about $464.3 million, which will allow it to not only survive, but potentially thrive if it's able to build out a solid distribution network over the next year. (See Aphria stock analysis on TipRanks)ConclusionThere is no doubt Aurora Cannabis, Canopy Growth and Aphria will be able to generate a significant amount of cannabis supply going forward. The major issues will include the pace of the roll out of license retail stores, how quickly market demand for derivatives will grow, and the amount of black market share these companies will win.On the positive side, I see many smaller companies dropping by the wayside in 2020, bringing more opportunity for these big three Canadian producers to grab more market share.Assuming the black market starts to shrink, that will remove a lot of lower-cost recreational pot from the market as well.For these reasons, I see the big three Canadian producers turning things around in 2020. What investors should take into account is this isn't going to happen in the first quarter, it's going to take at least to the second calendar quarter before we get a clear look at what is and isn't working with derivatives.We also have to see how accurately the marketing teams of these companies identify what consumers want. Canopy Growth has proven you can miss big in a segment of the market that was expected to do very well for the company.Last, I believe retailers will increasingly look to suppliers that can consistently deliver quality product on time. Aphria, Canopy Growth and Aurora Cannabis shouldn't have problems achieving those results.Cannabis 2.0 has the potential to be a real game changer for these three companies. If they deliver the goods, by the end of 2020 it should find them all reaching sustainable profitability for long into the future.To find good ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Bernstein Liebhard LLP announces that class action complaints have been filed on behalf of shareholders of ACB and ZYNE. If you wish to serve as lead plaintiff, you must move the court by the lead plaintiff deadlines listed below. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
NEW YORK, NY / ACCESSWIRE / December 4, 2019 / Pomerantz LLP is investigating claims on behalf of investors of Aurora Cannabis Inc. ("Aurora" or the "Company") (ACB). Such investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, ext. The investigation concerns whether Aurora and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
NEW YORK, NY / ACCESSWIRE / December 3, 2019 / The Law Offices of Vincent Wong announce that class actions have commenced on behalf of certain shareholders in the following companies. If you suffered a ...
Even prior to the horrible September quarterly report, analysts were questioning the cash position of Aurora Cannabis (ACB). A big part of the problem was a large convertible debt due in March hanging over the stock. The recent decision for substantially all of the debtholders to convert into common shares was a painful dilution for existing shareholders, but necessary in order for Aurora Cannabis to attract new investors. The company still has more work to improve the balance sheet before the stock becomes a buy, but this convertible debt conversion was a key step.Convertible Debt ConversionAurora Cannabis announced that 99% of the company's C$230 million, 5% unsecured, convertible debentures due March 9, 2020 voluntarily elected to convert to common shares. As a result, the Canadian cannabis company will issue an aggregate of 69,135,117 common shares at a conversion price of C$3.2837.The company already had a diluted share count above 1.1 billion shares. This conversion places the diluted share count above 1.2 million shares.For investors not paying attention to this logical conclusion, the dilution is painful considering the stock once topped $10 earlier this year. At a stock price of $2.50, the fully diluted market cap is ~$2.6 billion.Still Needs More CashThe big question is where Aurora Cannabis goes now with the stock beaten down to $2.50 and the crucial convertible debt handled. The biggest remain hiccups are the operating losses combined with still large capital spending requirements despite halting the spending on their two primary facilities.On the FQ1’20 earnings call, management still outlined the following quarterly capital spending requirements for the rest of this fiscal year ending next June: * FQ2 - C$108 million * FQ3 - C$70 million * FQ4 - C$50 millionAurora Cannabis ended the September quarter with C$153 million in cash on the balance sheet. When combined with already completed at-the-market equity offerings, the company has raised enough cash to fund these remaining large capital spending plans for the year.The problem remains the ongoing operating losses must be completely funded. The company has plenty of options including selling assets with C$973 million in facilities and property and another C$115 million in investments or completing further equity offerings via the ATM, amongst other options. Of course, the other option is to cut the adjusted EBITDA losses from the large C$34 million loss in FQ1 to reduce funding requirements. This likelihood of cutting losses appears small in the near term as Aurora Cannabis invests for the Cannabis 2.0 rollout in Canada and the CBD market in the U.S.The requirement to raise more funds while these convertible debt holders are allowed to immediately unload their new shares will pressure the stock. A potential investor can wisely wait on the sidelines until further financing is resolved and the Canadian market rationalizes more supply while demand catalysts as Cannabis 2.0 take fold.Analyst Commentary * CIBC's John Zamparo: "Aurora has unveiled a promising array of items which should allow the company to maintain its market share leadership. The conversion of its 2020 debentures and $190MM reduction in capital spending on production reduce worries over the company's liquidity, though ongoing dilution still presents an impediment to owning shares. Net, we continue to view Aurora as fairly valued, as its strong Canadian performance is weighed against its balance sheet and lack of U.S. presence or strategic partners [...] Our price target falls to $5 (was $7), and Aurora remains Neutral rated. (To watch Zamparo's track record, click here) * MKM's William Kirk: "When a company shifts so rapidly toward conserving capital at the expense of diluting existing shareholders, one would normally start to look toward solvency concerns. However, at odds with recent trends, management sounded very confident about Aurora's strategy and viability, and its strong gross profit margin makes funding (which Aurora still needs) a bit easier to obtain. Kirk rates the stock a "sell" along with a C$3.00 price target. (To watch Kirk's track record, click here)Overall, Wall Street is pretty evenly split between the bulls and those choosing to play it safe. Out of 12 analysts tracked by TipRanks in the past 3 months, 5 say "buy," 5 suggest "hold," while 2 recommend "sell." However, the 12-month stock-price forecast stands tall at $4.96, marking nearly 100% in upside potential from where the stock is currently trading. (See Aurora stock analysis on TipRanks)TakeawayThe key investor takeaway is that Aurora Cannabis has made several smart moves to position the company for a bright long-term future in the cannabis market. Unfortunately, the company still needs to fund ongoing capital losses while facing a tough competitive situation in the Canadian market.The best move for investors is to continue waiting for further weakness in the shares while awaiting more clarification on the dilutive impacts of additional capital raises.To find good ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
NEW YORK, NY / ACCESSWIRE / December 3, 2019 / Levi & Korsinsky, LLP announces that class action lawsuits have commenced on behalf of shareholders of the following publicly-traded companies. To determine ...
German pharmacies were recently asked to stop the sale of Aurora Cannabis (NYSE: ACB) products, according to Marijuana Business Daily. The products are awaiting for inspection by health authorities due to a proprietary step in Aurora’s production process, the publication said. Until the review is complete, the products will remain unavailable.
Glancy Prongay & Murray Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Aurora Cannabis Inc.
NEW YORK, NY / ACCESSWIRE / December 2, 2019 / The securities litigation law firm of The Gross Law Firm issues the following notice on behalf of shareholders in the following publicly traded companies. Shareholders who purchased shares in the following companies during the dates listed are encouraged to contact the firm regarding possible Lead Plaintiff appointment. A class action has commenced on behalf of certain shareholders in iRobot Corporation.
NEW YORK, NY / ACCESSWIRE / December 2, 2019 / The Law Offices of Vincent Wong announce that class actions have commenced on behalf of certain shareholders in the following companies. If you suffered a ...
NEW YORK, Dec. 02, 2019 -- Rosen Law Firm, a global investor rights law firm, announces it has filed a class action lawsuit on behalf of purchasers of the securities of Aurora.
Aurora Cannabis has been approved to sell CBD oil drops in Ireland. Marijuana stocks fell despite the news, with Aurora Cannabis stock reversing lower.
Cannabis stocks fell for a third straight day Monday, weighed down by the industry’s continued weak fundamentals with companies still posting losses as they struggle to generate revenue.
If you take a look at a recent chart for Aurora Cannabis (NYSE:ACB), it actually looks like what happened with the dot-coms during 2000-2001 - that is, an ugly grinding bear move. It's one of those things that seem to have no end, shaking just about everyone's confidence.Of course, with the dot-coms, there were some huge opportunities as seen with Amazon (NASDAQ:AMZN) and Booking Holdings (NASDAQ:BKNG), formerly known as Priceline.So then, with Aurora Cannabis, might we be seeing something similar? Could this be the time to make a buy? Or, could this be more like a situation of eToys or Pets.com?InvestorPlace - Stock Market News, Stock Advice & Trading TipsWell, I'm in the optimist camp. * 7 Entertainment Stocks to Buy to Escape Holiday Blues True, this is not to ignore the nagging problems. And yes, they are considerable. The legalization of cannabis in the Canadian market has not lived up to the lofty expectations (again, this is a parallel to the dot-com glory days). Keep in mind that governmental authorities have been agonizingly slow, especially with licensing of retail outlets. To make up for this, black market activities have become a major factor.As for Aurora Cannabis in particular, the company has had some of its own self-inflicted wounds. Let's face it: management has been too aggressive with its spending. It also looks like it has missed opportunities to strike strategic financings.However, while all these are serious problems, the markets have been factoring all this into Aurora's stock price. The result is that the market cap is a much more palatable $2.6 billion, which is not bad for a premier company in the space. Aurora's AdvantagesEven with the challenges in the Canadian market, it is still a nice source of growth. In the latest quarter, revenues for Aurora spiked by nearly 140% to $22.4 million. The company also has a decent amount of cash in the bank at $316 million.But next year there will be another catalyst for growth in the Canadian market - that is, Cannabis 2.0. This is when it will be legal to sell hemp-based edibles.Now the predictions are wide, with some estimates at over $2 billion. But even if it is half this, it should provide a nice opportunity for Aurora.The company is prepared for this, having invested in offerings like vapes, gummies, chocolates, mints, cookies and so on. There should also be help from Aurora's strategic advisor, Nelson Peltz, who is one of the world's top investors for consumer stocks. Some of his positions are in companies like Procter & Gamble (NYSE:PG), Mondelez (NASDAQ:MDLZ), and Wendy's (NASDAQ:WEN).It also should be noted that Aurora is not just in the recreational cannabis space. The company actually has a diverse platform, which should help it deal better with market conditions. For example, Aurora has been able to build a strong medical business, with more than 40 researchers who have conducted a long list of clinical trials and case studies. The company currently serves about 84,000 patients and has a global platform that which reaches about 25 countries. Bottom Line on Aurora StockOn the latest earnings call, Aurora CEO Cam Battley had this to say: "The past few months have been challenging for the broader cannabis industry, between issues of governance, evolving consumer demand, and provincial retail bottlenecks. There's been no shortage of negative news. That said, I want to reiterate that our view of the opportunity in the Canadian and global cannabis industry is still extremely robust."I think he is spot-on. Taking the long view of things is the way to approach companies like Aurora. This means there will continue to be lots of stomach-churning volatility. But we are still in the early days with cannabis - and more importantly, Aurora is positioned to be a winner.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Things to Watch for into 2020 for Safer Income & Growth * 7 Entertainment Stocks to Buy to Escape Holiday Blues * 5 "Strong Buy" Biotech Stocks With More Than 80% Upside The post Aurora Stock: An Interesting Speculation for 2020? appeared first on InvestorPlace.
With long lines forming outside Michigan's first recreational marijuana dispensaries Sunday, investors and consumers alike are closely following followed the evolving legal landscape of the state's multibillion-dollar cannabis market. From designated consumption establishments to recreational events, a litany of business opportunities have opened up in Michigan. Marijuana activist John Sinclair, who was notoriously sentenced to up to 10 years in jail in 1969 for giving two joints to an undercover cop, was the first to make a recreational purchase at one Ann Arbor dispensary Sunday, according to The Detroit News.
NEW YORK, NY / ACCESSWIRE / December 2, 2019 / The Klein Law Firm announces that class action complaints have been filed on behalf of shareholders of the following companies. There is no cost to participate ...