ACB - If You'd Invested $1000 in Aurora Cannabis in 2018 This Is How Much You Would Have Today
2023-09-22 08:35:00 ET
It has been almost five years since Canada first legalized marijuana for recreational use. At the time, you may have been tempted to invest $1,000 into a top cannabis producer such as Aurora Cannabis (NASDAQ: ACB) to see how it might do in the future given the promising growth opportunities ahead. Unfortunately, to say that things haven't gone well for Aurora -- or many other Canadian producers -- would be a huge understatement. Here's just how bad things have been since then.
If you look up Aurora's stock price on Sept. 4, 2018, some websites may say $81.60. That's adjusted for the massive reverse stock split the company made in 2020, when it consolidated 12 shares into 1. The real price as of the close on that day was $6.80.
If you'd invested $1,000 at the time, that would have given you 147 shares of the pot producer. But with the stock price in a free fall in 2019 and the start of 2020, Aurora was struggling to keep its stock price above $1. That's a key threshold it has to stay above to remain listed on the NYSE, the exchange where the stock was trading on at the time. In May 2020, in order to boost its share price, it consolidated its shares on a 12-for-1 basis. That means you would have received just 12.3 shares in return for your original 147 that you acquired.
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If You'd Invested $1,000 in Aurora Cannabis in 2018, This Is How Much You Would Have Today