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
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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.