06:03:55 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Aurora Cannabis Inc
Symbol ACB
Shares Issued 958,920,188
Close 2018-10-22 C$ 11.42
Market Cap C$ 10,950,868,547
Recent Sedar Documents

Globe says Aurora, others hear DBRS's skepticism

2018-10-23 08:50 ET - In the News

Also In the News (C-HMMJ) Horizons Marijuana Life Sciences Index ETF
Also In the News (C-WEED) Canopy Growth Corp

The Globe and Mail reports in its Tuesday edition that debt rating agency DBRS has issued a warning about the financial strength of Canadian cannabis companies, arguing that even the biggest among them should have "junk" ratings and that many licensed producers are likely to fail. The Globe's Tim Kiladze writes that on Monday, coinciding with the worst day of trading this year for pot stocks, DBRS released an analysis of the cannabis sector's credit risk that provides a sober look at the industry. "Although the development of the sector may benefit all licensed producers [LPs], not all will perform equally and many will fail," the agency wrote, adding that the sector's credit quality is currently low. "At the outset, DBRS believes that the largest LPs in the cannabis sector exhibit characteristics consistent with the low, non-investment-grade [junk] range of the credit ratings spectrum -- in the B range." The Globe notes that a "B" rating is two notches below investment grade. Cannabis stocks tumbled sharply on Monday: Aurora shares sank 12.2 per cent, Canopy dropped 11.2 per cent and Tilray fell 15.6 per cent. DBRS also believes it that is far too early to determine which companies will thrive.

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