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Why Aurora Cannabis Stock Sank Today

TheMotleyFool

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Shares of Aurora Cannabis (NYSE: ACB) fell 7% on Monday after the marijuana company conducted a reverse stock split.

After brutal losses in recent months, Aurora's stock price fell below $1 per share. In order for its shares to continue trading on the New York Stock exchange, Aurora needed to take action to boost its stock price. That action came in the form of a reverse stock split, which resulted in shareholders receiving 1 share for every 12 they owned.

The popular pot stock has fallen on hard times. Mounting operating losses and dwindling cash reserves have investors concerned that Aurora could run out of cash before it reaches sustained profitability.

Source Fool.com

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