Why Aurora Cannabis Crumbled Today
Shares of Aurora Cannabis (NASDAQ: ACB) crumbled by more than 11.7% on Monday as of noon ET amid a widespread decline in markets stemming from inflation concerns and the associated actions to control it as implemented by the Federal Reserve. With the Nasdaq falling by more than 3.7%, today's decline is only the latest rough day for the stock among many.
Growth stocks are being hit particularly hard by the downturn, and to add insult to injury, cannabis stocks haven't been performing well in at least a year, with the industry-tracking AdvisorShares Pure US Cannabis ETF falling by more than 66.6% in the last 12 months.
Aurora has issues that this decline will make worse, starting with being unprofitable and needing more cash. On June 1, it concluded a bought deal offering of 70.4 million of its units, each of which was priced at $2.45 and contains one share and one warrant. In total, the offering was worth around $172.5 million.
Source Fool.com
