Is Hexo Buying Aurora Sun Instead of Zena?Or is it just a rumour? But then again, it would be cheaper than the $235 million they're paying for Zena, so who knows?
"....The S&P/TSX Cannabis Index added 1.79 to 234.22, while the CSE Composite Index lost 20.43 to 854.40. Canadian cannabis grower Aurora Cannabis Inc. (ACB) edged up one cent to $12.16 on 5.5 million shares. The stock has given back all of the gains it enjoyed in the first six weeks of the year, when it doubled to $24 from $12, thanks to retail investors who went piling into all manner of cannabis stocks. The Aurora euphoria was cut short after the company released disappointing financials on Feb. 11. This weekend brought an unflattering postscript, related to Aurora's massive unfinished, unused Sun greenhouse in Medicine Hat, Alta.
Near the end of the quarter, in mid-December, Aurora announced that the Sun facility was closing indefinitely. This decision turned Sun into one of the more painful casualties of the earlier greenhouse craze. Many cannabis companies invested heavily in growing capacity throughout 2017 and 2018. In 2019, they realized their estimates of market demand were wildly inflated, and several had to sell facilities at steep losses. Aurora was initially reluctant to give up on Sun, which at 1.6 million square feet was hyped as one of the largest greenhouses-to-be in the world, but in late 2019, the company surrendered to market realities. It suspended construction and slashed its estimate of Sun's useful growing capacity to just 238,000 square feet. Then came the indefinite closure in 2020....."