By Aurora Cannabis Inc. (ACB) has received approval to transfer its U.S. listing from the Nasdaq Global Select Market to the Nasdaq Capital Market, effective today. This strategic move allows the company an additional 180 days to regain compliance with the Nasdaq’s minimum bid price requirement of $1.
In recent months, Aurora’s stock has closed below $1 for 30 consecutive business days. As part of its effort to strengthen its financial position, the company has also announced the repurchase of CAD13 million ($9.6 million) of convertible senior notes, leaving a total outstanding debt of $29.2 million.
A statement from Aurora highlighted that the purpose of the notes repurchase is to further reduce the company’s debt and annual cash interest costs. By doing so, Aurora is reinforcing its commitment to achieving positive free cash flow by the end of calendar year 2024.
To date, Aurora has successfully bought back approximately $316 million in principal amount of notes, resulting in significant savings of about $24.1 million in cash interest since December 2021.
Despite challenges in the cannabis market, the Canadian company remains resilient. While Aurora’s stock has experienced a 6% decline year-to-date, it showed a slight increase of 0.6% in premarket trading. By comparison, the AXS Cannabis ETF (THCX) has fallen by 18%, while the S&P 500 (SPX) has gained 16%.
Aurora Cannabis continues to prioritize financial stability and strategic initiatives to navigate through market fluctuations and position itself for long-term success.
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