Aurora Cannabis today announced that Steve Dobler, one of its co-founders would retire from his position as company president and board member on June 30. Dobler has been with the company since 2006 and was appointed as a director in December 2014. The move comes as the company reorganizes its management team after its stock fell drastically since 2019.
Aurora Cannabis share price
The company’s shares posted gains and were up 0.30% to trade at $13.69 in New York premarket session following the announcement.
Long-term investors in the stock have seen the value of their holdings fall from a high of $123 in March 2019 as the 2018 rally in Cannabis stocks faded amid industry-wide deterrents. The shares have been on a freefall since then and have broken below levels once deemed impossible.
The cannabis company has been making changes to its management team as part of a restructuring plan that saw Terry Booth retire from his CEO position in February.
The firm is yet to appoint a substantive CEO given that Micheal Singer the executive chairman is acting as CEO.
However, given that Aurora Cannabis is trading at $13 means that the downside on the company’s shares is quite minimal given that it once traded at as high as $150 during the 2018 rally.
The company has since written off over $1 billion of receivables and has laid off hundreds of employees in a bid to stay afloat.
The latest move may be a step in the right direction although I’m concerned that the company is yet to appoint a new CEO four months after Booth stepped down.
The future prospects for the Cannabis industry are still positive and Aurora is well-positioned to capitalise on the legalisation trend in most developed countries.
I cannot predict when Aurora Cannabis will embark on another major rally similar to 2018’s, but its current price is quite attractive to long-term investors and swing traders.