Here’s what Aurora Cannabis shareholders need to know about the planned reverse stock split…

Aurora Cannabis Inc. (NYSE: ACB) just announced that it is conducting a 1-for-12 reverse stock split, which is currently scheduled for May 11.

The company’s shares have traded below $1 for 30 days, which puts it at risk of being delisted from the New York Stock Exchange (NYSE). If it gets delisted, it will start trading in the OTC markets.

Now, if you still own the company when the Aurora reverse stock split happens, it may appear that your shares of ACB are more valuable. But that’s not what will happen when the Aurora reverse stock split takes place.

For every 12 shares of ACB that you own right now, you will receive 1 new share after the reverse stock split. So, if you own 12 shares right now, when the reverse stock split occurs, you will receive 1 share that is priced at $9.12.

And that is where it’s easy to get confused.

If you currently own 12 shares of ACB and they are each trading for $0.76, your total ACB shares are worth $9.12. When those 12 shares get traded in for 1 new share, the stock price will trade for $9.12, but your 12 shares will still only be worth $9.12.

The only real change you’re going to see is that the stock price will look like it’s higher.

Many people will wake up after the split and see the “surging” Aurora stock price.

“It went from $0.80 to $9!”

But now you’ll know what’s really going on.

The Aurora stock price did not magically jump from $0.80 to $9 in just one day.

Of course, before that happens on May 11, shareholders have a tough decision to make. They are asking themselves what they should be doing with their shares of Aurora.

Well, we have the answer…

What to Do Before the Aurora Reverse Stock Split

While Aurora was never in any of our model portfolios, we realize that a lot of our members own shares of ACB.

And it’s obviously been difficult to watch the share price plummet in value, especially for those who bought in around the $9 to $11 price range.

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Even with the reverse stock split, when shares start trading in the $8 to $10 range again, Aurora will still not be worth owning.

That’s why we sent out this warning in March.

While Aurora started out as a promising cannabis company, it has never developed a long-term vision or plan to win the Canadian cannabis market.

It’s just too steep of a hill for Aurora to recover.

You can access the full analysis in this free report.

Take care,


Comments

24 responses to “The May 11 Aurora Cannabis Reverse Stock Split”

    • Hi Kenneth,

      We do not buy or sell stocks, but many of our members use the brokerage accounts below. We have also included their customer service numbers:
      eTrade 1 (800) 387-2331
      Fidelity – 1 (800) 343-3548
      TDAmeritrade – 1 (800) 669-3900

    • Robinhood is a good place to look for pot stocks, easy to use and they provide links for research articles about each stock you are looking at. Also they have made it possible to purchase various crypto currencies.

    • I purchased 200 shares or Aurora several years ago @ $3.04 a share, the closing price(after mkt. trading) on Friday was .71, …. I believe part of the issue as to why this cannabis company crashed, was that it was announced that a class action lawsuit had been filed, due to manipulating investors with false statements and figures. What, if anything do you know about this occurring. I like many of your readers am looking to purchase more shares at rock bottom prices, that being said, should I wait to see where the price goes just before May 12th, or do you think .68 to .71 will be the low, and I should p/u another 200 shares or so now to better my position?

    • I got stuck with Schwab when they bought the broker I used. Not happy at all. They’re a blue chip company and don’t seem interested in tracking or keeping OTC and penny stocks or Canadian stocks up to date especially when it comes to splits and mergers. It seems to take 2 weeks to a month to update these stocks and you lose access to them during that period and by the time you can access them the opportunity to trade the volatility for profit is past and usually left in a bad position. Plus my account is not kept up to date. Right now I have two stocks with missing ticker symbols and missing links with no explanation on why and can not trade them, but I can access them in other ways just not through my account. When I send emails I swear they don’t even read them. It takes three or more times to explain what I wrote in the first email and then they give you an answer that has nothing to do with the first question. I have never received an valid answer to any thing I’ve inquired about. I am tempted to change brokers but have a lot of stocks to transfer and I am not sure where or how that would work. So I just keep dealing with it. I’ve heard the ones listed NICI above are good and Roadrunner also. I would avoid Charles Schwab if I were you!!!
      Always have a great trade!!
      Waltrek

  1. perhaps i’m just a little dense but i didn’t figure out just what it is those of us who still have acb ‘should’ do prior to the split – i understand that let’s say you have 25 shares, you will be ‘awarded’ 2 stocks with a value of $18+ but the aforementioned 25 would still only be valued at .76 for a total of $19, if one sells before the split you’ll get the .76 depending on the day and what it’s trading at, AFTER the split, are they tagged differently? if one sells post split they’ll still only sell for 76c, but if you sell the 2 awarded they’ll be $9?
    thanks

  2. So would a 1 day call option trade be good to take advantage of the people who wake up thinking the stock has surged? 😜🤷🏻‍♂️

  3. How do I buy into the Canadian marijuana market and us market sometimes I can’t get in or it says we are not trading with this company or it is not on their list I also trade ( myself) no brokers

  4. I lost $14,000.00 on this stock in 1 yr. I am out of all positions. It is hopeless to stay in a stock if it is going to have a reverse stock split, especially to that magnitude. History has shown that 90% or more Company that has reverse stock split has all ended up in Bankruptcy.
    It may start out at 9.00 /sh but will end up again below $1.00, so that will equate to .01 /share.

  5. I have about 200 shares of aurora stocks that I paid about $132 for what do I do with them when I wake up Monday morning I’m kind a new don’t really understand all of it just trying to find a way to let my money make money for me

    • Hi Muhammad,

      You will not have to do anything when the stock split officially happens. We just wanted to make sure our members know that while the stock price itself will be trading at a higher price, the value of your shares will stay the same.

  6. I am interested in buying some cannabis stock. However, I don’t know which stock to to buy at this time… so I am asking for your help making a decision, can you help?

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