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Aurora Cannabis Inc (NYSE:ACB) Announces Impairment Charges Of $752.79 Million: Michael Singer Becomes Interim CEO: Downsizes Workforce

Amid increasing expenses by almost four times the sales, Aurora Cannabis Inc (NYSE:ACB) downsizes the workforce and assumes impairment charges of $752.79 million. The company has cut 500 jobs that include 25% of the corporate positions.

Aurora Cannabis maintains 3,400 employees in 34 nations worldwide. A majority of the announced job cuts are from the contract workforce. The company expects to save $9 million CAD through cost-cutting measures. Aurora Cannabis has posted an EBITDA loss of $40 million CAD in Q1 2020. The company has to post quarterly revenues of $140 million CAD to reach the breakeven. According to analysts, Aurora Cannabis may reach the breakeven by Q4 2021.

Michael Singer becomes an interim CEO

Terry Booth, the present chief executive officer of Aurora Cannabis, will retire, and Michael Singer will act as an interim CEO. Singer assumed the role of executive chairman last year. Co-founder, Booth will act as an advisor and continues on the board. The company is searching for a permanent CEO. Its shares declined by 13% in the after-hours trading.

The net revenues of Aurora Cannabis in Q2 is expected to be in the range of CAD 50 million and CAD 54 million. Its revenues in the same period last year are CAD 54.2 million.

Aurora Cannabis made changes to certain credit facilities that include removing some covenants and options for refinancing at maturity. According to analysts, the company may not be able to pay the loan of CAD 360 million, which is due in August 2021. Aurora Cannabis is criticized for aggressive expansion worldwide amid uncertain demand. The company has not set any timeframe when it will become profitable.

Executive changes at other firms 

Aurora Cannabis joins the league of companies (Sundial Growers, Supreme Cannabis, and Canopy Growth) that made executive change. The change is on the backdrop of disappointing sales and mounting costs.

An analyst at New York based O’Neill, Andrew Kessner, said we need not expect a major change from Singer as an adviser because he is already at the helm of the company. It is only an indication to the market that the company is making changes.

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Puration Inc (OTCMKTS:PURA) Targets $4 Million Sales For CBD Infused Beverages And Complements Aurora Cannabis Inc (NYSE:ACB) For Its Strategy To Focus On Legal Hemp-Derived CBD in The US

Puration Inc (OTCMKTS:PURA) has given a pat on the back of Aurora Cannabis Inc (NYSE:ACB) for its decision to focus on the legal hemp-derived CBD in the US. The company has already established its name in the sports market of the US.

Aurora Cannabis enters a pact with UFC

Aurora Cannabis has already signed an accord with Ultimate Fighting Championship (UFC) to advance clinical research on athlete wellness and recovery and hemp-derived cannabidiol products. It is a multi-year, exclusive, and multi-million dollar partnership. This pact helps to expedite the development of CBD products and focus on education. UFC broadcasts its program to more than 170 nations worldwide. It commands viewership of 300 million. More than 1 billion households watch programmes in 40 different languages.

Aurora plans to use CBD to treat sports-related pains and helps quick recovery. On the other hand, PURA focuses on sports nutrition market with its EVERx CBD Sports Water. The brand worked with Cee Jay Hamilton and Juliana Penna, prominent fighters of the UFC. PURA has an exclusive license to the patented cannabis extraction process of Kali-Extracts. Further, it also gets access to R&D on various applications of CBD. The company has participated in Arnold Sports Festival to market its EVERx CBD Sports water worldwide.

PURA will launch a campaign this week in Barcelona, Spain to market its EVERx CBD products in Europe. The company views the strategy of Aurora Cannabis as the validation of its long term strategy.

PURA plans $4 million worth CBD beverages

The production of CBD Beverages at the facility of PURA exceeded $1 million in 2018. PURA has already produced more than $1 million worth CBD in H1 of 2019. The company plans to manufacture CBD beverages worth $4 million in 2019.

According to Goldman Small Cap Research, investors indulged in the speculative buy of PURA and set a target of $0.25 PPS. It is on the background of the announcement of market survey results of CBD infused beverages and the expansion plans of these beverages. PURA is poised in the market with its CBD beverages. It is on the proposed expansion of CBD Infused tea that has anti-inflammatory and anti-anxiety properties.

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UFC And Aurora Cannabis Inc (NYSE:ACB) To Work Jointly To Improve Safety And Wellness Of Athletes Using Advanced CBD Products

UFC has signed a multi-million dollar, multi-year exclusive global partnership accord with Aurora Cannabis Inc (NYSE:ACB). As per the terms of the deal, the companies will engage in R&D of CBD products derived from hemp and target the athletes for their wellness and quick recovery benefits. They will also strive to educate the users about the benefits of advanced CBD products for injury prevention and to provide nutrition. The users will also know about the health and wellness benefits of using CBD products.

Clinical study of CBD products

Both Aurora and UFC have chosen Las Vegas, Nevada based UFC’s Performance Institute to conduct the research involving athletes and sports performance team of UFC. The focus of the study includes the application of CBD products to mitigate inflammation, pain, quick recovery from exercises, and injuries. Professor of the University of Alberta, Dr. Jason Dyck will lead the research of Aurora’s products.

Dana White, President of UFC, said the main aim of Performance Institute is to provide best nutrition, training, and recovery services to UFC athletes. The pact with Aurora is an extension of this target, and the company is looking for innovative ways to improve the safety and health of the athletes competing in the UFC.

Chief Executive Officer of Aurora, Terry Booth said the partnership mainly concentrates on wellbeing and health of the trained and talented athletes. The UFC-Aurora R&D partnership will introduce a global platform for awareness and educational campaigns. It will generate a myriad of opportunities for the growth of CBD products.

UFC fan base

UFC holds a fan base of over 300 million across the world in more than 170 nations and territories. The performance institute established in the year 2017 in Las Vegas provides educational services and support to athletes on nutrition, wellbeing, and health and injury prevention.

Aurora targets Germany

Aurora is targeting Germany in a big way to boost sales of cannabis. The company derived revenues of CAD 4 million through selling dried cannabis in EU. It accounts for 7% of the revenues. The company is streamlining distribution and production and with that revenues are expected to soar. It will post better earnings from these markets.

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Aurora Cannabis Inc (NYSE:ACB) Wins A Second Order From Luxembourg Healthy Ministry To Supply Medical Cannabis To de la Pharmacie et des Medicaments

Aurora Deutschland, a subsidiary of Aurora Cannabis Inc (NYSE:ACB), has bagged a second order from Luxembourg Health Ministry. Under this exclusive deal, the company will supply medical cannabis to de la Pharmacie et des Medicaments, a division of Luxembourg. The company is proud to win this order in a public tender.

The second order confirms the trust reposed in Aurora as a supplier of quality cannabis. It shows the commitment of Aurora to work with regulators and local governments in the restricted markets.

Chief Global Business Development Officer, Neil Belot of Aurora said the company is pleased to get selected as an exclusive supplier of medical cannabis to the Luxembourg government. Another milestone to its credit includes recent selection as one of the three firms to begin manufacture of cannabis in Germany.

Access to high quality cannabis

Associate Director (Business Development) of Aurora, Maximilian Weinberg said the company is well positioned to capitalize on the growing demand with early mover advantage to grow medical cannabis. He is proud of the efforts put in by the team to accomplish the goal. The company is looking forward to provide access to good quality medical cannabis to the Luxembourg patients.

Tight trading range

The stock of Aurora is moving in a tight trading range. The company expects to release Q1 earnings on May 14, 2019 and the stock could see some action. It provides a critical update on the prospects of Aurora to investors.

Aurora is expected to post a robust growth in revenues in Q1 2019 backed by the execution of medical and cannabis strategies. The catalysts to the growth include the introduction of value added derivative products, and the launch of derivative products in the global markets. It supports growth in revenues and better margins.

Aurora achieved significant progress in clinical case studies. The company expects to begin 40 medical case and clinical trials. It is also progressing seven preclinical trials. The outcome of the clinical trials expects to strengthen the position of Aurora as a leader in medical space in the international and in the domestic markets. It expects to capture a major market share in the international and in Canadian markets.

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