(Reuters) - Aurora Cannabis Inc’s (ACB.TO) (ACB.N) U.S.-listed shares fell nearly 14% in morning trade on Monday after the Canadian pot producer renewed an at-the-market offering under which it can raise as much as $350 million in equity capital.
The company said its board also approved a reverse stock split of 1:12 to boost its share price above $1, the minimum required to maintain a listing on the New York Stock Exchange.
Aurora’s U.S.-listed shares were last trading below 80 cents.
Companies in the nascent marijuana industry had a rough 2019 and things are worsening this year, with many running out of cash at a time when the coronavirus pandemic has investors on the sidelines across all sectors.
Producers CannTrust Holdings Inc (TRST.TO) and James E Wagner Cultivation Corp JWCAh.V filed for bankruptcy protection two weeks earlier.
Edmonton, Alberta-based Aurora said on Monday it had about C$205 million ($146.8 million) cash as of March 31, including all the money it raised under the original at-the-market offering announced in May 2019.
Shares of other cannabis companies were also down on Monday with Tilray Inc (TLRY.O) down more than 8%, Hexo Corp (HEXO.TO) off 5% and Cronos Group Inc (CRON.TO) and Canopy Growth Corp (WEED.TO) down over 3%.
Reporting by Shariq Khan in Bengaluru; Editing by Shounak Dasgupta