Aurora Cannabis Reaffirms FY24 Positive EBITDA, Plans Share Consolidation

TL;DR

**Aurora's aiming for profit and positive cash flow, but watch out for that share consolidation!**

AI Summary

Aurora Cannabis Inc. (NASDAQ: ACB) announced on January 31, 2024, that it expects to achieve positive annual Adjusted EBITDA for fiscal year 2024 and positive free cash flow in calendar year 2024. The company also revealed its intention to consolidate common shares, a move often made to increase share price and maintain NASDAQ listing requirements. This matters to investors because positive EBITDA and free cash flow signal improved financial health, while a share consolidation could impact share price and ownership structure.

Why It Matters

This filing indicates Aurora Cannabis is making progress towards profitability and financial stability, which could boost investor confidence, but the share consolidation could dilute existing shareholders if not handled carefully.

Risk Assessment

Risk Level: medium — While positive EBITDA and free cash flow are good signs, the share consolidation introduces uncertainty regarding its impact on share price and investor sentiment.

Analyst Insight

An investor should monitor the details of the upcoming share consolidation and the Q3 earnings call on February 8, 2024, to understand the potential impact on their holdings and the company's financial trajectory, especially regarding the re-affirmed positive EBITDA and free cash flow expectations.

Key Players & Entities

• Aurora Cannabis Inc. (company) — the registrant and company providing the business update
• Glen Ibbott (person) — Chief Financial Officer who signed the report
• January 31, 2024 (date) — date of the news release and filing
• February 8, 2024 (date) — date of the Q3 2024 investor conference call
• fiscal 2024 (date) — period for which positive annual Adjusted EBITDA is expected
• calendar 2024 (date) — period for which positive free cash flow is expected

Forward-Looking Statements

• Aurora Cannabis will successfully achieve positive annual Adjusted EBITDA for fiscal 2024. (Aurora Cannabis Inc.) — medium confidence, target: March 31, 2024 (end of fiscal 2024)
• Aurora Cannabis will generate positive free cash flow in calendar 2024. (Aurora Cannabis Inc.) — medium confidence, target: December 31, 2024
• The share consolidation will lead to a temporary increase in Aurora Cannabis's stock price. (Aurora Cannabis Inc.) — medium confidence, target: Shortly after consolidation

FAQ

From the Filing

0001279569-24-000088.txt : 20240131 0001279569-24-000088.hdr.sgml : 20240131 20240131072523 ACCESSION NUMBER: 0001279569-24-000088 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20240131 FILED AS OF DATE: 20240131 DATE AS OF CHANGE: 20240131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AURORA CANNABIS INC CENTRAL INDEX KEY: 0001683541 STANDARD INDUSTRIAL CLASSIFICATION: MEDICINAL CHEMICALS & BOTANICAL PRODUCTS [2833] ORGANIZATION NAME: 03 Life Sciences IRS NUMBER: 000000000 STATE OF INCORPORATION: A1 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-38691 FILM NUMBER: 24580633 BUSINESS ADDRESS: STREET 1: 2207 90B STREET SW CITY: EDMONTON STATE: A0 ZIP: T6X 1V8 BUSINESS PHONE: 604-362-5207 MAIL ADDRESS: STREET 1: 409 GRANVILLE STREET STREET 2: SUITE 1700 CITY: VANCOUVER STATE: A1 ZIP: V6C 1T2 6-K 1 aurora_6k.htm FORM 6-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of January 2024 Commission File No. 001-38691 AURORA CANNABIS INC. (Translation of registrant's name into English) 3498 63 Avenue, Leduc, Alberta, Canada T9E 0G8 (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F Form 20-F ☐ Form 40-F ☒ SUBMITTED HEREWITH Exhibits Description 99.1 News Release dated January 31, 2024 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. AURORA CANNABIS INC. /s/ Glen Ibbott Glen Ibbott Chief Financial Officer Date: January 31, 2024 EX-99.1 2 ex991.htm NEWS RELEASE DATED JANUARY 31, 2024 Exhibit 99.1 Aurora Cannabis Provides Business Update and Announces Date of Third Quarter Fiscal Year 2024 Investor Conference Call NASDAQ | TSX: ACB Re-affirms expectation of positive annual Adjusted EBITDA 1 for fiscal 2024 and Positive Free Cash Flow 1 generation in calendar 2024 Announces Intention to Consolidate Common Shares Q3 2024 Investor Conference call scheduled for February 8, 2024 at 8:00 a.m. Eastern Time EDMONTON, AB, Jan. 31, 2024 /CNW/ - Aurora Cannabis Inc. ("Aurora" or the "Company") (NASDAQ: ACB) (TSX: ACB), the Canadian-based leading global medical cannabis company, provided key business updates today and confirmed that it will release financial results and host an investor conference call for its third quarter of fiscal 2024 ended December 31, 2023, on February 8, 2024. Fiscal 2024 Update: Adjusted EBITDA 1 is expected to be positive on an annual basis in fiscal 2024. Management continues to expect that the Company will generate positive free cash flow 1 in calendar 2024. Share Consolidation Aurora also today announced that its Board of Directors has approved, subject to required regulatory and stock exchange approvals, a plan to consolidate all of its outstanding Common Shares on the basis of 1 Common Share for every 10 Common Shares currently outstanding (the "Share Consolidation"), with such Share Consolidation to be effective on or about February 20, 2024. The Company expects the Share Consolidation to restore compliance with Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement") and to ensure the Company continues to have access to a wide range of institutional investors. Further details regarding the Share Consolidation can be found below under the heading "Information Regarding the Share Consolidation Plan". "We will continue to exercise financial discipline, and do not see this share consolidation as a distraction from our target of delivering positive free cash flow 1 this calendar year," said Miguel Martin, Chief Executive Officer of Aurora. "Aurora is tak