3 Red Flags for Aurora Cannabis' Future

Canada-based Aurora Cannabis (NYSE: ACB) had a disastrous 2019. Its stock price slid so far that the company risked being delisted from the New York Stock Exchange (which will boot a company if its price stays below $1 for long enough). Only a 1-for-12 reverse stock split in May saved it from that fate.

Of course, that financial sleight of hand did nothing to address its core issues. And despite some intense efforts in 2020, the company has failed to bounce back. Aurora's consistent inability to achieve positive earnings before income, tax, depreciation, and amortization (EBITDA) has left investors skeptical. Management did announce a new series of business transformation efforts in June to cut costs and conserve cash, but while those changes have helped bring costs down, they haven't been sufficient to make the company profitable yet.

Image source: Getty Images.

Source Fool.com