Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Aphria Inc. APHA

Aphria, which is headquartered in Ontario, produces and sells medicinal and recreational cannabis. The company operates through retail and wholesale channels in Canada and internationally. Aphria is a main distributor of medical cannabis to Germany and has operations in over 10 countries outside of Canada. However, it does not have exposure to the U.S. CBD or THC markets due to the constraints of federal prohibition. It has some U.S. exposure through the acquisition of SweetWater, a craft brewer


NDAQ:APHA - Post by User

Comment by Ventura2020on Oct 27, 2020 6:43pm
163 Views
Post# 31793008

RE:Cheese and Rice. ACB getting Smacked today...

RE:Cheese and Rice. ACB getting Smacked today...
Ventura2020 wrote: with the news release of completed ATM. 


Interesting

So what

Early Tuesday morning -- about two and a half hours before Cantor issued its downgrade -- Aurora announced that it only has about $272 million left in proceeds from its previous "at the market" stock sale. To refill its coffers, the company is proposing to sell another $500 million worth of "common shares, preferred shares, warrants, subscription receipts and debt securities" over the next 25 months.  

Cantor Fitzgerald was not at all pleased to hear this, observing that "contrary to expectations and guidance," says TheFly, the company appears to have burned through "what was left of the $183M equity facility in the last 30 days."

Now what

Now, Aurora needs more money, and to raise it, the company is issuing new stock, debt, warrants -- everything it thinks it might be able to sell, kitchen sink included. Notably, Aurora Cannabis's current stock is only valued at $505 million in total (plus another $275 million in net debt) so the sales it just announced that it's planning hold the potential to dilute existing shareholders' ownership stakes in the company by 50%.

https://www.fool.com/investing/2020/10/27/why-aurora-cannabis-stock-just-tanked-6/
<< Previous
Bullboard Posts
Next >>