Aurora taps hemp veteran as new CEO, signals revenue decline and massive write-downs

(A version of this story first appeared on Marijuana Business Daily.)

Aurora Cannabis has promoted Miguel Martin to CEO, while warning investors to expect declining quarterly revenue and write-downs of up to 1.8 billion Canadian dollars ($1.37 billion) when it reports fourth quarter results in two weeks.

Martin, former CEO of hemp company Reliva, joined Aurora as chief commercial officer after it acquired Reliva earlier this year.

Under Martin’s leadership, Aurora said it expects to focus on:

• Growing market share “in key profitable Canadian consumer categories.”
• Protecting and enhancing “Aurora’s leading market share in Canadian medical (marijuana).”
• Growing its international medical marijuana business.
• “(Building) leading brands under Reliva in the US CBD market.”

“Ultimately, Aurora believes that it is capable of supporting significantly higher levels of net revenue in the future without a corresponding level of growth in (selling, general and administrative expenses),” the company said.

The Edmonton, Alberta-based company trades as ACB on the Toronto Stock Exchange and the New York Stock Exchange.