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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index dropped 0.77 point to 126.71 Monday, while the Canadian Securities Exchange Composite Index fell 3.75 points to 272.89. In company news, Alberta-based cannabis producer Aurora Cannabis Inc. (ACB) dropped 16 cents to $1.06 on 39.45 million shares after announcing that it would roll back its shares on a 1:12 basis. The company made the announcement as part of a lengthy update that included figures such as its cash position as of March 31 ($205-million) and updates on its plans to cut its expenses. It slipped the news about the rollback beneath these other updates, perhaps feeling a little sheepish about having to resort to a 1:12 rollback. Using today's closing price of $1.06, the rollback would have Aurora's shares trading at $12.72, but the math is rarely that simple -- more often than not rollbacks send a stock in the downward direction.
The rollback is necessary for Aurora since, on April 8, it received notice from the New York Stock Exchange that it was in violation of the exchange's continued listing standards. (Aurora trades on both the NYSE and the Toronto Stock Exchange.) The violation was that Aurora's share price had fallen below an average of $1 (U.S.) for a consecutive 30-trading-day period. The rollback, which is expected to become effective around May 11, would reduce Aurora's shares outstanding from 1.31 billion to a healthier-looking 109.45 million.
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