Article16 Aurora Cannabis Predicts Nearly $2B In Write-Downs, Appoints New CEO
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By RJ Balde
As Aurora Cannabis Inc. warns investors to expect declines in quarterly revenue, the company has promoted Miguel Martin to CEO.
Martin, former CEO of the hemp company Reliva, acted as chief commercial officer at Aurora when it purchased Reliva earlier this year.
Aurora Cannabis has also informed investors that the company is expected to see up to 1.8 billion Canadian dollars worth of write-downs in the next quarter.
“Ultimately, Aurora believes that it is capable of supporting significantly higher levels of net revenue in the future without a corresponding level of growth in (selling, general and administrative expenses),” Aurora Cannabis said in a statement.
The company predicts somewhere between $70 million to $72 million in fourth-quarter revenue, a dip from the $75.5 million in prior quarter revenue. The company has also said that it is restructuring its credit facilities to better suit its internal modifications.
Marijuana Business Daily reports that in addition to growing Aurora’s international medical cannabis business and building leading CBD brands under the Reliva name, Martin’s leadership is expected to focus on expanding market share “in key profitable Canadian consumer categories.”
“I am excited to step into the role of CEO at this inflection point in Aurora's business,” Martin said in a statement.
“In my early days, I have seen the tremendous potential of this organization firsthand – a combination of deep industry knowledge, commitment to quality, great brands and a passion for patients and consumers that is truly differentiated. I am confident that we have the infrastructure and capabilities for long-term success in the global cannabinoid industry.”
Martin assumes the CEO role following the departure of Michael Singer, who took an interim CEO position in February of this year after co-founder Terry Booth left the company. In an interview with BNN Bloomberg, Singer said that Martin was hired after an extensive, six-month-long search. Singer hopes that Martin’s leadership and management style will bolster Aurora’s recreational cannabis commercialization efforts.
“We're going to focus on high-margin categories and products that are going to drive profitability,” Singer said.
According to Singer, the wave of news from Aurora is part of a tactical strategy that includes sharing its long-term plans to investors soon.
"This is about cleaning up the past," Singer said. "We've set a solid foundation to deliver strong performance going forward."
Singer noted that “very little competition” in Canada’s premium recreational cannabis market might assist Aurora in focusing on a wider array of products, such as pre-rolls and vapes.