mobile phone text pranks Citron Research on Twitter: &quot

  • Benzinga Pro
  • Marketfy
  • Financial Data & APIs
  • Events
  • Premarket Prep
  • Contribute
  • Login
  • Join

  • News
    • Earnings
    • Guidance
    • Dividends
    • M&A
    • Buybacks
    • Legal
    • Interviews
    • Management
    • Retail Sales
    • Offerings
    • IPOs
    • Insider Trades
    • Biotech/FDA
    • Freight
  • Markets
    • Pre-Market
    • After Hours
    • Movers
    • ETFs
    • Forex
    • Cannabis
    • Commodities
    • Options
    • Binary Options
    • Bonds
    • Futures
    • Global Economics
    • Previews
    • Reviews
    • Small-Cap
    • Cryptocurrency
  • Ratings
    • Analyst Color
    • Downgrades
    • Upgrades
    • Initiations
    • Price Target
  • Ideas
    • Long Ideas
    • Short Ideas
    • Technicals
    • From The Press
    • Jim Cramer
    • Rumors
  • Tech
    • Start-Ups
  • Fintech
  • Investing
    • Best Online Brokers
    • Personal Finance
    • Compare Brokers
    • TD Ameritrade Review
    • Ally Invest Review
    • Etrade Review
    • Personal Capital Review
    • Tradestation Review
    • Forex Review
    • Binary Options Review
  • Premium


Market Overview

Citron Slams Aurora Cannabis; Company Says It Won’t ‘Lose Any Sleep On Amateurish Attack’


Elizabeth Balboa , Benzinga Staff Writer

 

 


January 03, 2018 1:45pm

 
Comments

Share:

Citron Slams Aurora Cannabis; Company Says It Wont Lose Any Sleep On Amateurish Attack

This story was updated at 5:43 p.m. ET.

After a 545-percent run the last three months, AURORA CANNABIS IN (OTC: ACBFF ) is running on fumes, according to Citron Research.

Short-seller Andrew Left warned investors in a Wednesday short thesis that the $10.80 stock is likely to concede 50 percent “when sanity sets in.”

“You must be high to be buying Aurora, which sports Enron type accounting and is the weakest player in the space,” Left tweeted  at 12:39 p.m. ET.

Aurora Cannabis announced Tuesday it sold cannabis worth $2.5 million in November, its highest ever .

By Left’s assessment, the firm has no path to profitability even without the burden of taxes and distribution, and its financing structure betrays weakness in the underlying business model.

He also expressed concerns over:

  • Its lack of intellectual property and dependence on the products of other licensed producers;
  • “irresponsible” capital allocation seen in its $600 million Cannimed acquisition amid weakening barriers to entry;
  • and its self-dealings and insider sales.

Left assured that the critique is exclusive to Aurora and isn’t a commentary on the broader cannabis industry . Recreational cannabis became legal in California Jan. 1; Canada is set to legalize the sale of recreational cannabis by July.

At time of publication, Aurora was trading up 16.5 percent at $11.05.

Aurora’s Rebuttal

Aurora rejected all claims. “This guy has no clue what he’s talking about,” Executive Vice President Cam Battley told Benzinga in a phone conversation Wednesday afternoon.

In response to the profitability remark, Battley referenced the firm’s relative youth.

“We’ve been operating commercially for less than two years, so I’m sorry if he’s angry that we’re not profitable,” he said, asserting cash in excess of $320 million and marketable securities worth $180 million .

Aurora has committed capital to strategic acquisitions and partnerships to expand its presence through Canada, Europe and Australia, capitalizing on the regulated latency of U.S. rivals.

“We have very purposely established a remarkable warchest,” Battley said.

The company’s $40 million investment in Radient Technologies, Hempco and Cann Group is now worth $180 million. It recently secured Canadian licensing for the formerly bankrupt Peloton Pharmaceuticals, which it purchased for $7 million, and it’s leveraging its recently acquired Pedanios, Europe’s largest medical cannabis distributor, to establish roots in the yet-developing European market. That $23 million deal is expected to pay off as Italy, Poland and other countries legalize marijuana use.

Battley asserted an additional path to profitability as Aurora launches operations at its third and fourth facilities in the middle of 2018. Aurora claims the third highest quarterly revenue in the sector, with the fourth quarter’s $8.25 million representing 39-percent sequential revenue growth, and it expects to boast the industry’s second highest revenue by next quarter.

Regarding Left’s claims about intellectual property, Battley said the concept doesn’t apply to the cannabis industry, as plants can’t be patented. “Nobody has any proprietary strains,” he said.

Battley defended the firm’s financing as having a structure standard to Canaccord and claimed accounting practices consistent with IFRS, which requires all companies to report biological assets at the end of each quarter.

Any insider sales, he said, are unrelated to waning confidence and are instead attributable to a simple interest in profit-taking as the stock soars.

"What this is is an opportunistic run at a stock that has been rising and outperforming, nothing more," Battley said. "Hasn’t done his due diligence, doesn’t understand the cannabis sector at all, and certainly doesn’t know anything about Aurora, and we are not going to lose any sleep based on an amateurish attack like this."

The stock closed at $11.31, up 19.3 percent.

Related Links:

Citron Goes After Energous: ‘They Continue To Overpromise And Never Deliver’

Citron Covers Cryptocurrency Shorts Because ‘Easy Money Has Been Made’

Be the first to get this news with Benzinga Pro. Sign up for your free two-week trial here .

How to invest in marijuana stocks

Posted-In: Andrew Left Cannabis Long Ideas Short Sellers Short Ideas Top Stories Movers Trading Ideas Best of Benzinga

© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

 

Related Articles (ACBFF)

Canaccord Genuity Turns Bullish On The Green Organic Dutchman After Sell-Off

Pot Stocks, ETFs, Top News And Data From The Cannabis Industry This Week

Cannabis Has Dominated Over-The-Counter Trading In 2018

Cannabis Stocks Largely Down On Canadas First Day Of Legal Leaf

Cannabis Stocks Down On The Eve Of Canadian Legalization

Prohibition Partners Projects $12B Latin American Cannabis Market By 2028

View Comments and Join the Discussion!

View the discussion thread.

  • Trending
  • Recent
1 TYME, SQM: 31 Stocks Moving In Mondays Pre-Market Session
2 GM, TSLA: Elon Musk Talks GM, Marijuana And More In 60 Minutes&#039…
3 SNAP, NKE: Bulls & Bears Of The Week: Apple, Ford, Nike, Veri…
4 ASNA, CASY: 6 Stocks To Watch For December 10, 2018
5 GE, BHGE: UBS Still Bullish On GE
6 BASFY, HEINY: What Are The Biggest Int…
7 TVTY, AXON: A Peek Into Th…

1 SFIX, ASNA: 4 Stocks Moving In Mondays After-Hours Session
2 HD: A Few Key Takeaways From Home Depots Sell-Side Presentation
3 GOOGL, AAPL: Most FAANG Stocks Are In Bear Territory — But Still A G…
4 CURLF, MJ: 10 Reasons To Attend Benzingas 2019 Cannab…
5 BHGE, GE: UBS Still Bullish On GE
6 NKE, TWTR: The Most Tweeted-About Athletes…
7 Green Peak Innovations Snags 12…

Benzinga is a fast-growing, dynamic and innovative financial media outlet that empowers investors with high-quality, unique content.

Popular Channels

  • Analyst Ratings
  • ETFs
  • Economics
  • Forex
  • Hot
  • News
  • Options
  • Press Releases
  • Start-ups
  • Tech

Tools & Features

  • Affiliate Program
  • PreMarket Prep
  • Feeds
  • News Widget
  • Real Time Feed
  • Sitemap
  • Submit News Tips

About Benzinga

  • About Us
  • Licensing & Syndication
  • Market Data & APIs
  • Apps (iOS and Android)
  • Fintech Awards
  • Blog
  • In the News
  • Careers
  • Service Status
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions

Benzinga Partners

Images provided by Deposit Photos.

1 (877) 440-9464 (ZING)
© Copyright Benzinga




The Housing Industry: Checking In Ahead Of Q4 Earnings Reports

Aecom, Fluor Are Buys In The Engineering And Construction Space, Baird Says

  • Benzinga Pro
  • Marketfy
  • Financial Data & APIs
  • Events
  • Premarket Prep
  • Contribute
  • Login
  • Join

  • News
    • Earnings
    • Guidance
    • Dividends
    • M&A
    • Buybacks
    • Legal
    • Interviews
    • Management
    • Retail Sales
    • Offerings
    • IPOs
    • Insider Trades
    • Biotech/FDA
    • Freight
  • Markets
    • Pre-Market
    • After Hours
    • Movers
    • ETFs
    • Forex
    • Cannabis
    • Commodities
    • Options
    • Binary Options
    • Bonds
    • Futures
    • Global Economics
    • Previews
    • Reviews
    • Small-Cap
    • Cryptocurrency
  • Ratings
    • Analyst Color
    • Downgrades
    • Upgrades
    • Initiations
    • Price Target
  • Ideas
    • Long Ideas
    • Short Ideas
    • Technicals
    • From The Press
    • Jim Cramer
    • Rumors
  • Tech
    • Start-Ups
  • Fintech
  • Investing
    • Best Online Brokers
    • Personal Finance
    • Compare Brokers
    • TD Ameritrade Review
    • Ally Invest Review
    • Etrade Review
    • Personal Capital Review
    • Tradestation Review
    • Forex Review
    • Binary Options Review
  • Premium


Market Overview

Citron Slams Aurora Cannabis; Company Says It Won’t ‘Lose Any Sleep On Amateurish Attack’


Elizabeth Balboa , Benzinga Staff Writer

 

 


January 03, 2018 1:45pm

 
Comments

Share:

Citron Slams Aurora Cannabis; Company Says It Wont Lose Any Sleep On Amateurish Attack

This story was updated at 5:43 p.m. ET.

After a 545-percent run the last three months, AURORA CANNABIS IN (OTC: ACBFF ) is running on fumes, according to Citron Research.

Short-seller Andrew Left warned investors in a Wednesday short thesis that the $10.80 stock is likely to concede 50 percent “when sanity sets in.”

“You must be high to be buying Aurora, which sports Enron type accounting and is the weakest player in the space,” Left tweeted  at 12:39 p.m. ET.

Aurora Cannabis announced Tuesday it sold cannabis worth $2.5 million in November, its highest ever .

By Left’s assessment, the firm has no path to profitability even without the burden of taxes and distribution, and its financing structure betrays weakness in the underlying business model.

He also expressed concerns over:

  • Its lack of intellectual property and dependence on the products of other licensed producers;
  • “irresponsible” capital allocation seen in its $600 million Cannimed acquisition amid weakening barriers to entry;
  • and its self-dealings and insider sales.

Left assured that the critique is exclusive to Aurora and isn’t a commentary on the broader cannabis industry . Recreational cannabis became legal in California Jan. 1; Canada is set to legalize the sale of recreational cannabis by July.

At time of publication, Aurora was trading up 16.5 percent at $11.05.

Aurora’s Rebuttal

Aurora rejected all claims. “This guy has no clue what he’s talking about,” Executive Vice President Cam Battley told Benzinga in a phone conversation Wednesday afternoon.

In response to the profitability remark, Battley referenced the firm’s relative youth.

“We’ve been operating commercially for less than two years, so I’m sorry if he’s angry that we’re not profitable,” he said, asserting cash in excess of $320 million and marketable securities worth $180 million .

Aurora has committed capital to strategic acquisitions and partnerships to expand its presence through Canada, Europe and Australia, capitalizing on the regulated latency of U.S. rivals.

“We have very purposely established a remarkable warchest,” Battley said.

The company’s $40 million investment in Radient Technologies, Hempco and Cann Group is now worth $180 million. It recently secured Canadian licensing for the formerly bankrupt Peloton Pharmaceuticals, which it purchased for $7 million, and it’s leveraging its recently acquired Pedanios, Europe’s largest medical cannabis distributor, to establish roots in the yet-developing European market. That $23 million deal is expected to pay off as Italy, Poland and other countries legalize marijuana use.

Battley asserted an additional path to profitability as Aurora launches operations at its third and fourth facilities in the middle of 2018. Aurora claims the third highest quarterly revenue in the sector, with the fourth quarter’s $8.25 million representing 39-percent sequential revenue growth, and it expects to boast the industry’s second highest revenue by next quarter.

Regarding Left’s claims about intellectual property, Battley said the concept doesn’t apply to the cannabis industry, as plants can’t be patented. “Nobody has any proprietary strains,” he said.

Battley defended the firm’s financing as having a structure standard to Canaccord and claimed accounting practices consistent with IFRS, which requires all companies to report biological assets at the end of each quarter.

Any insider sales, he said, are unrelated to waning confidence and are instead attributable to a simple interest in profit-taking as the stock soars.

"What this is is an opportunistic run at a stock that has been rising and outperforming, nothing more," Battley said. "Hasn’t done his due diligence, doesn’t understand the cannabis sector at all, and certainly doesn’t know anything about Aurora, and we are not going to lose any sleep based on an amateurish attack like this."

The stock closed at $11.31, up 19.3 percent.

Related Links:

Citron Goes After Energous: ‘They Continue To Overpromise And Never Deliver’

Citron Covers Cryptocurrency Shorts Because ‘Easy Money Has Been Made’

Be the first to get this news with Benzinga Pro. Sign up for your free two-week trial here .

How to invest in marijuana stocks

Posted-In: Andrew Left Cannabis Long Ideas Short Sellers Short Ideas Top Stories Movers Trading Ideas Best of Benzinga

© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

 

Related Articles (ACBFF)

Canaccord Genuity Turns Bullish On The Green Organic Dutchman After Sell-Off

Pot Stocks, ETFs, Top News And Data From The Cannabis Industry This Week

Cannabis Has Dominated Over-The-Counter Trading In 2018

Cannabis Stocks Largely Down On Canadas First Day Of Legal Leaf

Cannabis Stocks Down On The Eve Of Canadian Legalization

Prohibition Partners Projects $12B Latin American Cannabis Market By 2028

View Comments and Join the Discussion!

View the discussion thread.

  • Trending
  • Recent
1 TYME, SQM: 31 Stocks Moving In Mondays Pre-Market Session
2 GM, TSLA: Elon Musk Talks GM, Marijuana And More In 60 Minutes&#039…
3 SNAP, NKE: Bulls & Bears Of The Week: Apple, Ford, Nike, Veri…
4 ASNA, CASY: 6 Stocks To Watch For December 10, 2018
5 GE, BHGE: UBS Still Bullish On GE
6 BASFY, HEINY: What Are The Biggest Int…
7 TVTY, AXON: A Peek Into Th…

1 SFIX, ASNA: 4 Stocks Moving In Mondays After-Hours Session
2 HD: A Few Key Takeaways From Home Depots Sell-Side Presentation
3 GOOGL, AAPL: Most FAANG Stocks Are In Bear Territory — But Still A G…
4 CURLF, MJ: 10 Reasons To Attend Benzingas 2019 Cannab…
5 BHGE, GE: UBS Still Bullish On GE
6 NKE, TWTR: The Most Tweeted-About Athletes…
7 Green Peak Innovations Snags 12…

Benzinga is a fast-growing, dynamic and innovative financial media outlet that empowers investors with high-quality, unique content.

Popular Channels

  • Analyst Ratings
  • ETFs
  • Economics
  • Forex
  • Hot
  • News
  • Options
  • Press Releases
  • Start-ups
  • Tech

Tools & Features

  • Affiliate Program
  • PreMarket Prep
  • Feeds
  • News Widget
  • Real Time Feed
  • Sitemap
  • Submit News Tips

About Benzinga

  • About Us
  • Licensing & Syndication
  • Market Data & APIs
  • Apps (iOS and Android)
  • Fintech Awards
  • Blog
  • In the News
  • Careers
  • Service Status
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions

Benzinga Partners

Images provided by Deposit Photos.

1 (877) 440-9464 (ZING)
© Copyright Benzinga




The Housing Industry: Checking In Ahead Of Q4 Earnings Reports

Aecom, Fluor Are Buys In The Engineering And Construction Space, Baird Says

Press J to jump to the feed. Press question mark to learn the rest of the keyboard shortcuts

log in sign up Visit Old Reddit
Posts Rules

Newbie Guide
New to Reddit? New to r/weedstocks? Want to trade?

Wiki

1

Posted by

u/bluejeanbetty

4 years ago

Archived

Andrew Left of Citron Research Says $CANN is Complete BS

SEC is investing OTC MJ companies. Tread carefully

comment

100% Upvoted
This thread is archived
New comments cannot be posted and votes cannot be cast
Sort by

no comments yet

Be the first to share what you think!

Community Details

r/weedstocks

80.7k

Subscribers

629

Online

Business news, resources, research, and investment discussion for publicly traded cannabis related stocks.

Create Post
Welcome to r/weedstocks!
  • New to Reddit? Read This .
  • New to r/weedstocks ? Read This .
  • Want to start trading? Read This .

  • Use the search bar before posting. All questions that can be answered by these resources may be removed.

r/weedstocks Rules
1.
Be respectful and kind
2.
No click-bait titles
3.
No off-topic discussion
4.
All posts must have appropriate flairs
5.
No low-effort content/pumping/bashing
6.
Press releases must link from appropriate sites
7.
No generic meme or reaction gifs/videos
8.
No self promotion, spam, or product reviews
9.
No posting simple/vague/common questions
10.
No re-posts
Upcoming Events

Submit upcoming events/earnings/conference calls to the mods (with relevant sources) so we can post them here. Please note: earning report dates are usually estimates.

Company (Tickers)InfoDate (m/d/y)
OrganiGram (OGI/OGRMF)Financials (Q4)~11/30/18
Afzal Hasan – President, Origin House (OH/ORHOF)AMA12/14/18
KushCo Holdings (KSHB)Financials (Q1 10-Q)01/14/19
Aphria (APHA)Financials (Q2)01/19/19
Liberty Health Sciences (LHS/LHSIF)Financials (Q3)01/29/19
Aurora Cannabis (ACB)Financials (Q2)02/14/19
Canopy Growth Corporation (CGC)Financials (Q3)02/14/19
Supreme Cannabis Co. (FIRE/SPRWF)Financials (Q2)03/01/19
Canopy Rivers (RIV/CNPOF)Financials (Q3)03/01/19
Charlotte’s Web (CWEB/CWBHF)Financials (Q4)04/30/19
Emblem Corp. (EMC/EMMBF)Financials (Q3)04/30/19
TerrAscend (TER/TRSSF)Financials (Q4)04/30/19
r/weedstocks discord channel

Join us in our chat on Discord.

Investing References

Investing References (USA-based):

  • US Operators: Market Cap & Geographic Footprint — by /u/j0dd

  • US Operators: Geographic Footprint — by /u/170807

  • Making the Case for Investment in the U.S. Cannabis Industry — by /u/jdcyclist

  • State-by-state Cannabis Policies


Investing References (Canadian-based):

  • Canadian Cannabis Stocks Spreadsheet

  • List of Canadian Licensed Producers


Investing References (General):

  • North American Marijuana Index

  • A Guide to Pre-IPO Cannabis Investing by /u/tippytaps_happydance

AMAs
  • AMA Archive (2016-2017)

  • Mike Gorenstein from Cronos — 2/21/18

  • James West & Ben Smith from Midas Letter — VOD — 7/13/18

  • Nick Dean from Emblem — 8/14/18

  • Hadley Ford from iAnthus — 9/4/18

  • Mitch Baruchowitz from Merida Capital — 9/18/18

  • Chris Naprawa from Khiron — 9/20/18

  • Brayden Sutton from 1933 Industries (TGIF) — 9/28/18

  • Charlie Bachtell from Cresco Labs — 10/3/18

  • Josh Rosen and Kris Krane from 4Front — 10/10/18

  • Bob Groesbeck from Planet 13 — 10/26/18

  • Matei Olaru from Lift & Co. — 11/13/18

  • Peter Horvath from Green Growth Brands — 11/21/18

  • Vicente Fox from Khiron — 12/04/18

Guides and Market Resources
  • A Beginner’s Guide to Investing

  • The Intelligent Investor

  • Investopedia

Investing Disclaimer

The information on this sub is entirely the opinion of the user member and should not be considered investment advice under any circumstances. Any investment is subject to normal market fluctuations and there can be no assurance that an investment will return its value or that appreciation will occur. /r/weedstocks does not endorse any of the opinions solicited on this sub.

Moderating Disclaimer

Breaking any of the community rules is grounds for having your post/comment removed, ban warning, and/or banned.

Current banning guideline:

  1. Warning
  2. Three day ban
  3. Permanent ban

We reserve the right to moderate at our own discretion .

about careers press
advertise blog help
the reddit app reddit coins reddit premium reddit gifts
content policy | privacy policy
user agreement | mod policy
© 2018 Reddit, Inc. All rights reserved