(Reuters) - Aurora Cannabis Inc's ACB.TOACB.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.
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
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