Aurora Cannabis Inc. CEO Terry Booth announced that he is retiring amid “sweeping changes” for the Canadian cannabis (ACB) - Get Report producer, the latest pot company to make changes amid a cash crunch in the sector.
In a statement, Aurora outlined a "business transformation plan" that detailed cutting jobs and making cuts in the valuation of assets, that the company will recognize when it reports 2nd quarter 2020 results later this month.
U.S.-listed shares of the company fell more than 16% in premarket trade Friday, tracking their late-Thursday losses, which came after being halted for news Thursday afternoon while down 5.6%.
The company said it has eliminated about 500 full-time staff positions or roughly 17% to 18% of its workforce. Aurora has lost 74% of its value in the past 12 months, after continuing to fail to meet the targets that it set for itself.
The U.S. cannabis market size was valued at $11.3 billion in 2018 according to MarketWatch. The market has seen huge growth despite its questionable legal status and companies are trying to keep up with its growing demand and frequent legal hurdles.
The marijuana market has grown significantly over the past few years as more states have legalized it. As of 2019, 33 U.S. states and the District of Columbia have legalized marijuana for medical, recreational or both purposes.
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