Even as the overall cannabis industry has been getting bigger and earning more enthusiasm from investors, Canadian marijuana company Aurora Cannabis stock has done poorly.
And while the company is focused on improving its bottom line, it booked an an adjusted EBITDA loss of CA$24 million — even steeper than the loss of CA$16.8 million it took in fiscal Q2 2021.
As bearish a forecast as that may be, it still wouldn’t put the share price anywhere near the lows it hit in October 2020 when it fell below $4 on the NASDAQ.
Better numbers would help the stock gain some traction, and also lessen the need for management to continually issue new shares to raise cash.
In the past 12 months, Aurora Cannabis burned through CA$280 million for its operating activities, and raised CA$714 million through stock offerings.
Aurora has been a chronic underperformer, and as tempting as it might be to roll the dice on the stock and bet that the company will turn things around, that would be a dangerous tactic.
All of that bullishness faded within days, but it’s a reminder of just how quickly some positivity can send Aurora’s share price soaring.
Unless you’re the gambling type, I would stay away from Aurora’s stock — it just isn’t worth the risk.