Shares of marijuana producer Aurora Cannabis plunge after announcing a major restructuring that involves laying off hundreds of staff and the resignation of its CEO.
Shares of marijuana producer Aurora Cannabis (ACB) – Get Report plunged on Friday after the Canadian company announced a dramatic restructuring that involves the departure of hundreds of staffers, including its CEO.
Aurora Cannabis stock was down more than 15% in premarket trading on Friday after the Edmonton-based company revealed that its CEO, Terry Booth, will retire effective immediately, and that it will eliminate some 500 staff positions, of which roughly 25% are corporate positions.
The announcement comes as cannabis and cannabis-product producers and distributors struggle with oversupply, lack of demand, and a more general distaste for all things pot-related, specifically among investors but more generally among the pot-consuming public – despite widespread legalization of the green weed in Canada in 2018 and more recent U.S. state approval of the plant last year. [Read More @ The Street]
Aurora said Executive Chairman Michael Singer has been appointed interim CEO and a search for a permanent successor is underway. Booth will remain a director and become a senior strategic adviser to the board, which will gain two new members: Lance Friedmann and Michael Detlefsen.