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Aurora Cannabis Sinks on Bad News Dump Analysts Fear Won’t End

  • CEO departs, 500 jobs cut, C$1b writedown, credit line reduced
  • ‘Growth-at-all-costs’ phase of industry is over, analysts say
Shoppers Inside A Hobo Cannabis Co. Store
Photographer: David Kawai/Bloomberg

Aurora Cannabis Inc. slumped as much as 19% Friday after the company dumped a kitchen sink worth of bad news on investors.

Founder and Chief Executive Officer Terry Booth is stepping down. It’s cutting 500 employees as part of a major cost-reduction effort. It will record as much as C$1 billion in goodwill writedowns and asset impairment charges in its fiscal second quarter. Its credit facility has been cut by more than one-third. And its preliminary second-quarter revenue was well below analyst estimates, with little to no growth expected in the third quarter.