RE:Misleading Results And Mismanagement (I)
- Aurora Cannabis is one of the largest marijuana companies in Canada, and it depends on marijuana legalization for production scale.
- However, scale is not the company's primary problem. Aurora cant even generate gross profit on current sales, and fixed expenses are ballooning.
- Aurora's financial statements are misleading, and the company looks badly managed. Expect a huge amount of equity issuance.
Aurora experiences mismanagement, significant cash burn from operations, and what look to be misleading financial statements. The company can't even manage to generate gross profit, and its operating expenses are unjustifiably high compared to its sales performance. Many of these expenditures are discretionary because they relate to employee compensation, and this calls management priorities into question.