Canada’s Aurora Cannabis is undertaking a reverse share split by merging its common shares on a 12-to-one basis, effective May 11, in a bid to remain listed on the New York Stock Exchange.
Aurora was warned by the NYSE in April that its shares, which have fallen below $1, do not meet the exchange’s listing standards.
The share consolidation is expected to “restore compliance with the NYSE’s continued listing standards and to continue to provide access to a broad universe of investors, access to equity capital and trading liquidity,” Aurora noted Monday in a news release.
The Edmonton, Alberta-based cannabis cultivator had 205 million Canadian dollars ($147 million) in cash at the end of March after a $400 million at-the-market offering program announced in May 2019.
Aurora plans to launch a new ATM program in the hopes of raising another $350 million.
“We are taking appropriate actions to strengthen our cash position and maintain financial flexibility as we navigate through the current environment,” interim CEO Michael Singer said in the release.
Aurora said its Canadian and international facilities remain fully operational during the COVID-19 pandemic.
The company anticipates net revenue for its third quarter to “show modest growth relative to fiscal Q2 2020.”