Aurora Cannabis has promoted Miguel Martin to CEO, while warning investors to expect declining quarterly revenue and write-downs of up to 1.8 billion Canadian dollars ($1.37 billion) when it reports fourth quarter results in two weeks.
Martin, former CEO of hemp company Reliva, joined Aurora as chief commercial officer after it acquired Reliva earlier this year.
In a business update, the cannabis producer signaled that it expects net revenue for its fourth quarter to fall from CA$75 million in the third quarter to between CA$70 million and CA$72 million for the quarter ended June 30.
Aurora now anticipates positive adjusted EBITDA in the second quarter, after Aurora had assured investors earlier this year it was “on a path to be EBITDA positive in Q1.”
Under Martin’s leadership, Aurora said it expects to focus on:
- Growing market share “in key profitable Canadian consumer categories.”
- Protecting and enhancing “Aurora’s leading market share in Canadian medical (marijuana).”
- Growing its international medical marijuana business.
- “(Building) leading brands under Reliva in the US CBD market.”
“Ultimately, Aurora believes that it is capable of supporting significantly higher levels of net revenue in the future without a corresponding level of growth in (selling, general and administrative expenses),” the company said.
Upcoming impairment charges announced Tuesday by Aurora will range from CA$1.6 billion to CA$1.8 billion, including charges of up to CA$90 million for “production facility rationalization” and CA$140 million in inventory, mostly cannabis trim.
Aurora is among a number of Canadian cannabis firms unloading greenhouses after years of over investment.
The company also said it was mutually terminating its partnership with mixed martial arts fighting league UFC, for a cost of $30 million.
The company also said it had amended its senior secured debt, reducing adjusted EBITDA milestones and downsizing its revolving credit facility from CA$43 million to CA$15 million.
Aurora said it had CA$160 million of cash on hand as of June 30.
The Edmonton, Alberta-based company will report its fourth quarter results after markets close on Tuesday, Sept. 22.