pot stock money

.This pot stock is planning to dispose of its remaining interest in Green Organic Dutchman Holdings (TGODF Stock Report). AuroraCannabis (ACB Stock Report) preparing to sell its shares of TGODF at a 14.5% discount to its closing price. The news has led to questions regarding the cash position of the giant marijuana company.pot stocks to watch: Aurora Cannabis (ACB)

Aurora Covering Their Losses

At the end of March, the company reported a fair value $139 million on its 28.8 million share position in Green Organic Dutchman. Aurora has however agreed to dispose the stock at $86.5 million to a group of bankers. It seems like the management was not ready to wait for TGOD stock to recover to prevent a loss.

There is a possibility that Aurora may need cash. However, the shares they held from TGOD were not held for strategic purposes. This is because there was some clear intention late last year to liquidate the investment as well as a reclassification to marketable securities.  Therefore the shares of this pot stock could be sold anytime the company considered necessary.

This Pot Stock is in need of capital

However, there are signs that Aurora may need cash to meet its contractual obligations. This marijuana stock had cash and cash equivalents of $390 million at the end of March 2019 and needed $730 million to see it to march 2020

Aurora has a huge investment portfolio of marketable securities that it could sell to generate cash from time to time. The investments were valued at $273 million in March. The TGOD stake was part of it and it is no surprise that the company chose to dispose of it. TGODF-Pot Stock

The company has continued to generate inspiring revenue growth. Back in June of 2019, the company gave guidance for positive adjusted EBITDA. Going forward operating with cash is likely to reduce as revenue growth continues in the recreational and medical front with strong export sales performance. As things start to balance out momentum should build back for this pot stock to watch 

[Read More] Is it the Right Time to Buy This Pot Stock?

Aurora may require cash but the situation is not that dire. Its growth projects such as the need to have a facility in Germany may require cash. In Auroras recent news they release they announced that they has scheduled a conference call to discuss the results for its fourth quarter and fiscal year ended June 30, 2019. This call will take place on Thursday, September 12th, 2019 at 9:00 a.m. Eastern TimeTerry Booth, Chief Executive Officer, Glen Ibbott, Chief Financial Officer, Cam Battley, Chief Corporate Officer, and Michael Singer, Executive Chairman, will host the call and a question and answer period. The Company will report its financial results for the fourth quarter and fiscal year end after the close of markets on Wednesday, September 11th, 2019.

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