Aurora CEO to retire, take on adviser role as pot firm cuts 500 jobs
TORONTO Aurora Cannabis co-founder and chief executive Terry Booth will retire and step down from the marijuana producer, with executive chairman Michael Singer becoming interim CEO, the company said in a statement on Thursday.
The company has also cut about 500 jobs, including about 25 per cent of corporate positions, and will cut capital expenditures in the second half of fiscal 2020 to bring them to below $100 million, it said in the statement.
Aurora’s U.S. listed stock fell 13 per cent in after-hours trading. The shares were halted pending news released earlier on Thursday.
Booth will remain on Aurora’s board and will become a strategic adviser to the company, Aurora said, confirming an earlier Reuters story.
“I don’t think we’re going to see some sort of major strategic change, because Singer has been involved with the company and they’re keeping Booth on as an adviser,” said Andrew Kessner, an analyst at William O’neill in New York. “This is to signal to the market that they are making changes.”
The executive change makes Aurora the latest in a string of Canadian cannabis companies to change leadership as soaring costs and disappointing sales prompt concern from investors sitting on billions of dollars in losses.
Singer has been on the board of the Alberta-based company since May 2016. He takes leadership of Aurora as the company is facing criticism for its aggressive global expansion amid uncertain demand. Aurora has stopped estimating when it will become profitable after missing its own guidance.
Aurora also said it had made amendments to its secured credit facilities, including removal of some covenants.
Aurora has begun a formal search for a permanent CEO, Booth said in the memo without providing a time frame.