Aurora Cannabis Inc.’s U.S.-listed shares slid 8% Monday, after the company announced the exit of a key executive, amid insiders selling stakes, dilutive financing moves and questions about the company’s path to profitability.
The Canadian company, which is the most widely held stock ACB, -4.50% ACB, -4.58% on trading platform Robinhood, said late Saturday that Cam Battley, its chief commercial officer and the man widely viewed as the face of the company, was leaving. Battley had been with Aurora since 2016 and will remain on the board of MedReleaf Australia, a private cannabis company in which Aurora owns a stake.
Jefferies downgraded the stock to hold from buy following the news.
“It is clear to us that the market is lacking conviction in Aurora, and this update will do little to help that,” Jefferies analyst Owen Bennett wrote in a note to clients as he lowered his stock price target to C$3.00 ($2.28) from C$7.00.
Aurora shares have lost 24% of their value in the past month, battered by negative sell-side reports, a controversial convertible bond exchange that was highly dilutive for shareholders and news that Director Jason Dyck had sold more than 1 million of his shares, equal to 57% of his holdings.