SAN FRANCISCO, Nov. 18, 2019 /PRNewswire/ -- Hagens Berman urges Aurora Cannabis Inc. (NYSE: ACB) investors who have suffered losses on or before Nov. 15, 2019 to submit their loss now to learn if they qualify to recover compensable damages. The firm has opened an investigation into Aurora Cannabis and investors may have valuable claims under the federal securities laws.
The investigation centers on the accuracy of Aurora Cannabis' reported financial statements and purported progress in completing significant construction projects.
Aurora Cannabis has repeatedly referred to itself as a "global leader in cannabis revenues, cannabis production, research, innovation, and international market development" and promoted its "continued transparency and disclosure." As recently as Oct. 3, 2019, the Company provided investors a construction update on its operations and growth initiatives, including on its Aurora Sun and Aurora Nordic 2 projects, touting that Aurora continues to progress construction of the "Sky Class" facilities.
But on Nov. 14, 2019, Aurora Cannabis shocked investors when it announced wider than expected losses and that revenue had declined by 24% quarter over quarter. In addition, the cash-strapped Company disclosed it would be halting construction immediately at its Aurora Nordic 2 and Aurora Sun facilities.
MarketWatch reported, "[a]nalysts said that investors had a reason for anger and distrust." In downgrading the stock, an analyst at Jeffries reportedly noted, "With possible cash pressures evident, announcing ceased construction at facilities despite a press release just 6 weeks ago praising progression, and now EBITDA (and cash) positive looking unlikely this year, it would be fair for investors not to believe them."
This news sent the price of Aurora Cannabis shares plummeting about 17% on November 15, 2019, the largest single-day percentage decline for Aurora shares in more than five years and the lowest closing price since October 2017.
"We're focused on recovering investors' losses and whether Aurora Cannabis misled investors about its operations and growth initiatives," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Aurora Cannabis should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email mailto:[email protected].
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