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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index edged up a fraction to 116.41, while the CSE Composite Index lost 4.34 points to 508.98. The large but troubled Canadian grower Aurora Cannabis Inc. (ACB) lost 55 cents to $5.24 on 4.69 million shares, after revealing that it needs money once again. Investors seem worried that this could mark the start of a familiar but unpleasant path.
Aurora has filed a preliminary prospectus to issue up $500-million (U.S.) worth of shares, debt and/or other securities over the next 25 months. Moreover, it has exhausted the $650-million (U.S.) at-the-market equity program that it arranged just a year and a half ago. A month ago, as of Sept. 22, Aurora said this program still had $177.8-million (U.S.), or about $234-million, left available. Now it says the program is done. What this means is that Aurora has raised nearly $9.5-million per trading day over the last month -- and yet, according to today's announcement, its cash position is still only $272-million (compared with $162-million as of June 30). This is not a flattering burn rate.
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