Recent Aurora rebound looks good alongside plans to start Hat facility up in June
By COLLIN GALLANT on May 16, 2020.
cgallant@medicinehatnews.com@CollinGallant Shares in Aurora Cannabis stock shot up by 75 per cent on Friday, the day after it bucked the trend with positive financial news among struggling pot producers. City officials as well as investors are buoyed by the company’s news this week that it plans to open part of the Aurora Sun greenhouse this summer and vows to meet profit goals later this year. The Edmonton-based company that slashed workforce, capital spending and aggressive expansion plans this winter trimmed its costs and reported growing revenue. It committed to a previously announced plan to commission 240,000 of the 1.6 million square feet initially planned at Medicine Hat. That space could be commissioned and licensed in June, according to the company’s officers speaking on a conference call. Mayor Ted Clugston told the News that the earnings report and construction progress is welcome after uncertainty over the winter and current worry about the general economy. “I’m optimistic that there is a little light at the end of the tunnel,” Clugston told the News on Friday. “Obviously it’s not the 500 to 600 jobs (in the company’s initial plan) right away, but it’s positive news.” Aurora stock had hovered under $1 for several weeks this spring, and on Monday was consolidated 12 to 1 early to be revalued at about $10. It fell leading up to Thursday’s quarterly financial release, but rose $6.65 on Friday with heavy volume to finish the week at $15.89. It follows an extremely cold winter for companies and investors in the 18-month-old legal cannabis industry, which features plummeting share values as market demand grew much more slowly than predicted. 11-10
