Welcome to our Cannabis Earnings series where we break down the latest earnings to help you focus on the most important topics.
Introduction
Aurora Cannabis (ACB) reported fiscal 2019 fourth-quarter results that disappointed investors, sending its share tumbling 9% that day. The company sold more cannabis in Canada than Canopy did but its EBITDA remains a negative $11 million. We think Aurora's struggle with profitability reflects the general malaise facing the entire Canadian cannabis market. A messy rollout of retail stores in Ontario and significant initial undersupply has gotten the legal market into