Aurora Cannabis (NYSE: ACB) was once the shining star of the cannabis industry. At one point in early 2018, its shares had generated gains for investors of more than 1,200% from its predecessor company’s initial listing price on the Canadian Stock Exchange in July 2014.
Aurora, however, would go on to struggle.
In the face of a supply glut, its industry-leading cannabis production capacity became more of a burden than an asset. Aurora was forced to write down the value of many of the acquisitions it made during more optimistic times. And as its financial losses mounted, the beleaguered marijuana producer had no choice but to issue massive amounts of shares to raise the cash it needed to survive, severely diluting shareholders in the process.