Marijuana companies are fast falling out of favour.
A year ago they were the darlings of the investment community.
Today they are struggling.
The latest big company to hit the skids is Aurora Cannabis Inc. of Edmonton, the second-largest marijuana grower in Canada.
This week its chief executive officer Terry Booth revealed he is stepping down and 500 employees are losing their jobs, including 25 per cent of the corporate staff.
The company also announced it expects to take a $740-million to $775-million reduction on goodwill, and an impairment charge of between $190-million and $225-million.
The moves are being done “to rationalize the cost structure and balance sheet going forward,” the company said in a statement.
Mr. Booth has led Aurora since 2013.
Canopy Growth, Canada’s largest marijuana producer in the former Hershey’s chocolate plant at Smith’s Falls, soared to a stock-market value of $14 billion by Oct.5, 2018, but last year its share prices plunged by 32 per cent and it changed chief executive officers twice – in July and December.
On Tuesday, Tilray announced it is laying off 10 per cent of its employees. Its stock price fell by 78 per cent last year.
