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/