|Bid||3.5700 x 0|
|Ask||3.5800 x 0|
|Day's Range||3.5700 - 4.0900|
|52 Week Range||2.8200 - 13.6700|
|Beta (3Y Monthly)||1.97|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Marijuana stocks surged Thursday on promising regulatory develops in the U.S. and Canada to give one major weed ETF its best day of 2019.
TORONTO — Some of the most active companies traded Friday on the Toronto Stock Exchange:Toronto Stock Exchange (16,954.84, down 44.35 points.)Aurora Cannabis Inc. (TSX:ACB). Health care. Down 56 cents, or 13.53 per cent, to $3.58 on 20.3 million shares.The Green Organic Dutchman Holdings. (TSX:TGOD). Health care. Down 22 cents, or 18.8 per cent, to 95 cents on 13.3 million shares.Manulife Financial Corp. (TSX:MFC). Financials. Up two cents, or 0.08 per cent, to $25.80 on 11 million shares.Husky Energy Inc. (TSX:HSE). Energy. Down 18 cents, or 1.84 per cent, to $9.60 on 9.5 million shares.Bombardier Inc. (TSX:BBD.B). Industrials. Down 12 cents, or 5.58 per cent, to $2.03 on 8.6 million shares.Hexo Corp. (TSX:HEXO). Health care. Down 54 cents, or 15.93 per cent, to $2.85 on 6.8 million shares. Companies in the news:Canada Jetlines Ltd. (TSX-V:JET). Up half a cent or 11.1 per cent to five cents. Canada Jetlines Ltd. says it is suing WestJet Airlines co-founder David Neeleman in the United States for allegedly interfering in the fledgling discount carrier's efforts to get off the ground. Executive chairman Mark Morabito said it launched legal proceedings in the U.S. district court in Connecticut against Neeleman, DGN Corp. and Breeze Aviation Group, for "tortious interference with business expectancy and violation of the Connecticut Unfair Trade Practices Act." In a statement of claim, it alleges Neeleman and his affiliates embarked on "a predatory scheme" to destroy the relationship between Jetlines and an international investment bank that ultimately terminated its help in raising new capital to start the airline.Canadian National Railway Co. (TSX:CNR). Up 25 cents to $120.20. The federal government urged Canadian National Railway Co. and its striking workers to continue talks in what it believes would be the fastest way to resolve their dispute which has stopped freight trains across the country. The strike at the country's biggest railway entered its fourth day with no resolution in sight as round-the-clock negotiations continue under the watch of federal mediators. The Teamsters union said Friday that "no substantive progress has been made" since 3,200 workers hit the picket lines early Tuesday morning.MEG Energy Corp. (TSX:MEG). Down three cents to $5.60. Shares in oilsands producer MEG Energy Corp. rose by as much as 3.9 per cent Friday after it announced lower capital spending and a continued focus on debt retirement in 2020. Analysts applauded the Calgary-based company's plan to spend $250 million next year — about $20 million less than some expected — with production that is still forecast to meet expectations at between 94,000 and 97,000 barrels of bitumen per day. MEG says about $210 million of the budget is considered sustaining and maintenance capital.This report by The Canadian Press was first published Nov. 22, 2019. The Canadian Press
Aurora Cannabis (NYSE: ACB) (TSX: ACB) has named Dr. Shane Morris as chief product officer and André Jérôme as chief integration officer. Morris previously worked as senior vice president of product development and regulatory affairs, while Jérôme was senior vice president of business integrations. The appointments are effective immediately. Morris joined Aurora in January 2018 to […]The post Aurora Cannabis Names Chief Product and Chief Integration Officers appeared first on Market Exclusive.
(Bloomberg) -- The bear market in pot stocks has left billions in convertible debentures underwater, meaning cash-starved companies may have to “creatively restructure” their debt or pay a bill they didn’t expect would come due.Cannabis companies hopped into convertibles in the last three years when their stock prices were soaring and traditional debt markets were largely closed to the untested, unprofitable and stigmatized sector. Issuers that tapped the U.S. markets included Canadian pot giants Canopy Growth Corp., Aurora Cannabis Inc., Tilray Inc. and Aphria Inc.Converts are a form of interest-paying debt that can be converted into stock at a set price. Investors generally buy them on the assumption that shares will appreciate, giving them the opportunity to convert at a discount. If they choose not to convert, companies have to repay the principal when they mature.That was appealing when stocks were appreciating, but the recent rout in what had been high-flying marijuana stocks has left the shares far below the conversion price -- at just the time when cash-strapped companies are finding it tough to raise capital.“We expect more companies with near-term maturities to attempt to creatively restructure their converts if they can,” said Neil Selfe, founder and CEO of Infor Financial Group Inc., a Canadian investment bank that’s active in the cannabis industry. “We are very busy on a number of restructuring and debt-related files given that the equity markets are closed.”When Tilray announced its $475 million bond in October 2018, its conversion price of $167 -- when the embedded stock option would get triggered -- wasn’t far off from where shares were trading, roughly in the $140-$150 band. Its stock has since fallen 87% to $21, meaning investors hoping to convert are banking on a more than 700% rally.Tapping the convertible market in the U.S. gave cannabis companies two significant advantages: a “quantum of capital” and access to an institutional investor base, said Iain Franks, head of convertible and equity-linked products at Cowen Inc. The convertible market in Canada is primarily driven by retail investors.“Cross-listing equities to a U.S. exchange and tapping the U.S. institutional market provides issuers and investors with certain validation that the cannabis sector is real and investable,” Franks said.There was a natural demand for cannabis convertibles in the U.S., especially from hedge funds that were quick to snap up the stocks, according to bankers familiar with the matter, who requested anonymity due to sensitivities surrounding the marijuana market.But cannabis companies’ high-risk credit profiles meant terms were generally less favorable than other issuers, at a time when the pricing environment had been stronger than ever.The summer of convertibles in 2019 meant tech companies like Snap Inc. or industrial issuers such as Fortive Corp. could get sub-1% coupons and 40%-plus conversion premiums. Meanwhile, cannabis convertibles -- many of which aren’t due to mature until 2023 -- have had 4%-plus coupons and sub-25% conversion premiums.“For investors, given how far out-of-the-money the notes are and current trading prices, the securities trade more as a fixed-income substitute with higher yield,” Franks said. “For the issuing companies, unless the valuations recover to 2018 levels, it means the securities will need to be refinanced at some future point.”Last week, Aurora became the first big cannabis company to restructure its converts. It had C$230 million of 5% notes maturing in March 2020 with a conversion price of C$13.05 per share. Shares were trading at C$4.38 when it announced that holders could convert early at a 6% discount to its recent trading price. Holders of 94% of the securities took them up on the offer.“The market was concerned about where we would get that cash to settle that liability in March,” said Aurora Chairman Michael Singer. “That’s gone a long way to strengthen our balance sheet.”However, Aurora’s shares tumbled 29% in the two days after it announced the early conversion, which will dilute its share count by approximately 6%.“Financings like this at these levels are massively dilutive to existing shareholders and it isn’t a surprise that they would react negatively,” said Infor’s Selfe.The average retail investor was probably unhappy at the dilution but it provided an appealing option for institutional holders, who can see long-term value in a company that may otherwise have run out of cash, according to Cowen analyst Vivien Azer.“Ultimately what will benefit these retail investors is more institutional money coming into these stocks and driving down volatility and making more capital available to drive share prices higher,” Azer said. “If this is what needs to happen to clean up these stories so we can get incremental institutional capital in these names, everyone benefits.”To contact the reporters on this story: Kristine Owram in New York at email@example.com;Crystal Kim in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Scott Schnipper, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Top cannabis players have lost 75% in market value over the last year. Here's why investors can expect weakness to continue in the short-term.
Aurora Cannabis Inc. shares sank to a two-year low Friday after its revenues missed expectations and the pot producer announced it was halting construction at one production facility and pausing work at another to save more than $190 million in planned expenses.The Edmonton-based company's shares fell to a low of $3.57 and closed down 79 cents or 18 per cent to $3.59 in trading on the Toronto Stock Exchange.Aurora announced after markets closed on Thursday that it will immediately cease construction of its Aurora Nordic 2 facility in Denmark to save about $80 million over the next year, as well as indefinitely defer completion of construction and commissioning at its Aurora Sun facility in Alberta to conserve $110 million."We're making sound decisions in reducing capex based on global demand," founder and CEO Terry Booth said during a conference call.The company said it is adjusting the construction timeline for both facilities to more closely align with its expectations for the timing of increasing Canadian and international demand."The past few months have been challenging for the broader cannabis industry between issues of governance, evolving consumer demand and provincial retail bottlenecks, there's been no shortage of negative news," added chief corporate officer Cameron Battley."That said, I want to reiterate that our view of the opportunity in the Canadian and global cannabis industry is still extremely robust. It's important to remind ourselves that the Canadian consumer market is just over a year old. These issues will take a little time to resolve. But in the end, we'll be a stronger business because of it."The construction decisions come as the company reported net income of $10.4 million for the quarter ending Sept. 30, compared with net income of $104.2 million for the same quarter last year.Aurora missed expectations as its adjusted earnings before interest, depreciation and amortization (EBITDA) was negative $39.7 million for its first quarter of fiscal 2020. That compared with a loss of $67.6 million a year earlier and a loss of $11.7 million the fourth quarter ended in June.Revenues were $75.3 million in the first quarter, up from $29.7 million for the same quarter last year, but down from the $94.6 million in the prior quarter.Analysts had expected adjusted EBITDA loss of $18.6 million and revenue of $93.31 million, according to financial markets data firm Refinitiv.While medical marijuana sales grew three per cent from the fourth quarter as the number of patients hit a record 91,000, consumer cannabis sales dropped 33 per cent on slowing demand from provinces as they work through high inventory levels.Analyst John Chu of Desjardins Capital Markets slashed his target price for Aurora by more than half to $6.50 per share after cutting his sales and EBITDA forecasts following Aurora's release of its first-quarter results."We still believe there remains tremendous growth in the sector and have maintained similar year-over-year sales growth rate estimates for our fiscal year 2021-2023 forecast periods, but operating off a lower base following the soft first quarter results," he wrote in a report, adding that he's maintaining his buy rating."Aurora is generating industry-leading gross margins, improving cost per gram and has award-winning strains that should continue to resonate with consumers."Despite some of the negative results, Battley said its cash cost to produce fell 25 per cent to 85 cents per gram, the average net selling price per gram was up seven per cent, kilograms produced climbed 43 per cent to 41,436 kilograms and its gross margin was stable at 58 per cent "which is head and shoulders above our peers."Based on these returns, Aurora says it would need to generate $130 million of revenue to become profitable, less than half the total that would be required by a comparable company earning lower margins.The company said it is preparing to supply new products, referred to as Cannabis 2.0, that have recently become legal that it says will help to reduce the illegal market.I'm excited as hell about 2.0," said Booth. "I know I'm supposed to be told be conservative, Terry, but I really am pumped about how Aurora has done its job and getting ready for 2.0. And all indicators from our retailers, from our provinces, from Health Canada and all the little hints that you hear says that Aurora is at the top of that pack as well. So we're pretty pumped."This report by The Canadian Press was first published Nov. 15, 2019.Companies in this story: (TSX:ACB) Ross Marowits, The Canadian Press
While some market analysts point to a blue wave being value destructive to the overall market, it could boost cannabis stocks, says CFRA's Garrett Nelson.
Could this be the best time to buy Aurora Cannabis's (TSX:ACB)(NYSE:ACB) stock cheap as sentiment worsens for the marijuana industry?
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) reported its financial and operational results for the three and nine months ended September 30, 2019. The company experienced a loss of C$20.1 million for the third quarter. The important move TGOD made in the quarter was entering the recreational market with a small pilot in Ontario. […]The post Cannabis Stock News Roundup November 15 appeared first on Market Exclusive.
Alibaba, Now May Not Be the Best Time to IPO in Hong Kong Alibaba (NYSE:BABA) is going public in Hong Kong with a $13.4 billion listing, and it’s putting extra stress on the Hong Kong banking system specifically at a time when the island is on the verge of exploding in cacophonous riots leading to […]The post Market Morning: Alibaba Goes Hong Kong, Uber Dump, Alzheimer's Hope, Cannabis Collapse appeared first on Market Exclusive.
The pot producer has announced plans to shore up its balance sheet that include halting construction plans at facilities in Alberta and Denmark.
Ask Benjamin Witte about Recess, and one of the first places he’ll send you is the company’s Instagram page.
The following items require special investor focus in the upcoming quarterly earnings of Aurora Cannabis (TSX:ACB)(NYSE:ACB).
Aphria’s stock price has risen 8.9% since reporting its Q1 earnings on October 15. The cannabis sector's weakness offset some of these gains.