Aurora Cannabis (NYSE:ACB) has lost a bit of corporate stardust. Buried in an update about its upcoming annual general meeting, the marijuana grower revealed that billionaire investor Nelson Peltz has resigned as a senior advisor to the company.
The press release included no details nor any specific reasons for his departure. In an email to Marijuana Business Daily, Aurora said without much elaboration that “[t]his change is a direct result of Mr. Peltz’s decision to pursue other commitments.”
Peltz himself has not commented on the resignation.
The veteran investor’s tenure with Aurora did not last long. The company brought him on board to much fanfare in March 2019, in a move that was seen at the time as lending legitimacy to the marijuana sector.
Upon his appointment, Aurora wrote that it and Peltz “will work collaboratively and strategically to explore potential partnerships that would be the optimal strategic fit for successful entry into each of Aurora’s contemplated market segments.” But the persistent challenges in the cannabis market and the disruptions of the coronavirus pandemic didn’t give the company much scope for this.
Aurora, one of the more high-profile marijuana companies on the market, is struggling and in flux. In early September, it named a new CEO, Miguel Martin, and last week it delivered a deeply disappointing earnings report for its fiscal fourth quarter. For the period, which ended June 30, revenue dipped 5% quarter over quarter and 27% year over year, its net loss from continuing operations was a canyon-sized 1.9 billion Canadian dollars ($1.4 billion), and management offered weak top-line guidance.
The market’s unfavorable response to the Peltz news should not come as a surprise. Aurora’s shares closed Tuesday down by nearly 2.1%, a steeper decline than that posted by the S&P 500 index.
This article originally appeared in the Motley Fool.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.