There's been nothing but bad news for Aurora Cannabis lately. The Canadian cannabis producer posted dismal fiscal 2020 Q2 results in February. Its longtime CEO stepped down. Aurora laid off staff. Its stock is down more than 60% year to date.
And now the picture for Aurora just got bleaker. One of the biggest problems for the company in 2019 became worse over the weekend.
Aurora Cannabis hasn't been shy in the past at pointing the finger at Ontario's inadequate number of retail cannabis stores as a big reason its revenue growth hasn't been as high as it expected. For at least the next couple of weeks, the big province won't have any retail cannabis stores open. Aurora's only venue for selling cannabis products in the province will be online through the Ontario Cannabis Store.
Obviously, the situation in Ontario affects many other Canadian cannabis producers as well. But it will hit Aurora especially hard. Aurora is already burning through cash quickly, even with its efforts to reduce capital spending and cut back staffing costs. The company had a little over $201 million Canadian in cash, cash equivalents, and restricted cash at the end of 2019. That's not enough to fund operations for very long, and particularly with what's sure to be lower cannabis sales in Ontario with the retail store closures.
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