The Edmonton, Alberta, cannabis company at last check was off 8.1% to $7.41. Aurora is scheduled to report fiscal-third-quarter earnings on Thursday.
Aurora proposed the reverse split in April. It made the move after the shares traded below $1 each for more than 30 days, threatening its listing on the New York Stock Exchange.
Analysts at Cowen updated their model on the company to reach a C$12 (US$8.55) price target on the shares trading on the Toronto Stock Exchange. At last check Aurora shares were down 5% to C$10.37 in Toronto trading.
"We have a market perform rating on ACB. With one of the largest production capacities among the LPs, ACB has gotten off to a solid start in the Canadian adult use cannabis industry (an estimated C$12 billion by 2025)," analyst Vivien Azer wrote.
"However, cost overruns and missed targets have resulted in notable management turnover and the need to refinance debt with strict mandates around -profitability."
Holders of Aurora now own one share for every 12 they had previously. The split consolidated the total shares outstanding to 110 million from more than 1.3 billion at 12 times the previous share price.
The company then further diluted the shares by issuing more stock.
Meanwhile, after the closing bell Monday, peer cannabis company Canopy Growth (CGC) - Get Report is scheduled to report earnings after the bell Monday. TheStreet's Bret Kenwell analyzes the charts for Canopy Growth.