Shares in Alberta-based Aurora Cannabis (ACB.C) dropped 25% over the last few weeks in the wake of a sustained sell-off/short attack.
ACB is down nearly half from it’s late November $0.74 high, but had wheeled about in the $0.55-$0.60 range until May, when the wheels fell off.
Word on the street is associates of former insider Marc Levy may be dumping their stake in the company, sticking it to ACB CEO Terry Booth after the pair ended their business relationship in less than friendly circumstances.
Levy is back in the mining business at present, while Booth has been trying to stop ACB’s wheels from spinning, to no avail. Financing would be good, but that’s going to prove a tough thing to do with stock in the company rolling downwards, day after day.
Data from the CSE shows a substantial short position forming under ACB this month, in fact the numbers show Aurora being the most shorted stock on the CSE by a wide margin, which may point to the situation being far from over.
This would normally be the point where I’d call Terry Booth and ask him about what’s going on, but I share Levy’s negative opinion on the king of the ‘tired and emotional’ 3am email and so, truthfully, I have zero shits to give about what he thinks about why his company is imploding.
That said, I’d love to know why Booth sold 3m of his own shares in the company a week ago, just a few weeks after buying 1m.
Whether Levy is orchestrating a take down or the general public has simply realized Aurora was beyond over-valued where it was, be smart and wait for a multi-day, clear base to happen before trying to catch this falling knife.
Or sell. Like the CEO did.
ADDENDUM: Spoke to someone loosely connected to both Booth and Levy, who says Levy got out of ACB a few months back. Which still leaves the question, why is Booth dumping his own stock?