MKM Partners analyst says he expects $2-billion account of writedowns
Aurora Cannabis Inc. appears to accept listed its greenhouse in Exeter, Ontario, for auction for $17 million, a move that one analyst said “implies massive writedowns” are coming.
A advertisement on Cushman & Wakefield’s website advertises a 22-acre greenhouse with a 15,000-square-foot advancement breadth on Exeter’s Airport Line, the aforementioned area as a greenhouse Aurora acquired as allotment of its $3.2 billion accretion of MedReleaf Corp. in 2018.
“This listing, for 75 per cent of above MedReleaf’s capacity, signals above writedowns ahead,” MKM Partners analyst Bill Kirk said in a agenda appear Monday. “We are additionally beat with the afterimage of Aurora’s action — investors were blind Aurora was aggravating to advertise Exeter,” admitting a accumulated amend on Dec. 23. That aforementioned day, Aurora said Chief Accumulated Officer Cam Battley would depart.
Aurora bent that the greenhouse would accept appropriate “retrofit and cogent basic advance in adjustment to accommodated Aurora’s assembly standards,” aggregation backer Michelle Lefler said in an emailed account Monday. “Aurora has taken absolute accomplish to rationalize basic expenditures and adjust our agronomics brand to accepted demand, including affairs the Exeter facility.”
Kirk said he expects $2-billion account of writedowns. Aurora’s bazaar amount was $2.8 billion at Friday’s abutting and the aggregation had $3.9 billion of amicableness and affluence on its antithesis sheet. “We accept added divestitures are likely, as Aurora has a above banknote problem, and this advertisement alone covers about two weeks of banknote burn,” he added.
The aggregation mentioned the Exeter greenhouse in its 2018 anniversary report, citation 105,000 kilograms per year of agronomics capacity. However, it wasn’t mentioned in its 2019 anniversary address and hasn’t been mentioned in any columnist releases back the MedReleaf accord closed.
“As far as we can tell, the ability was never licensed, and no artefact was anytime awash from Exeter,” said Kirk, who ante Aurora a advertise with a $2 amount target.
Aurora fell as abundant as 5.4 per cent Monday to $2.46. Shares are bottomward 65 per cent over the accomplished 12 months.
Business For Sale Edmonton – business for sale edmonton
Gallery of Business For Sale Edmonton
Related Posts for Business For Sale Edmonton
Everyone should attending advanced to activity home afterwards a continued day. You should be aflame about putting your anxiety up and adequate afterwards a arduous day at the office. However, accomplishing this beatific activity is about absurd if your home is a mess. Accomplish accepting things in adjustment your ambition this new year. There are […]
Unsurprisingly Gmail has fabricated it assimilate our list. Gmail is a badly accepted webmail account with a minimalist architecture and a convenient interface, complete with an admin animate for business users. April 2018 saw Google barrage its “biggest amend yet”, carrying added aegis controls and acute appearance for abbreviation clutter. One of the banderole appearance […]
Chances are acceptable that you fabricated some claimed resolutions for the new year. Conceivably you vowed to eat healthy, lose some weight, accompany a gym and absolutely go there two to three times a week. Or, you may be bent to analysis some items off your brazier list. Your business may allegation some absorption and […]