Many cannabis-sector stocks are trading down Friday. But Aurora Cannabis (NASDAQ: ACB) is leading the way after it plunged as much as 41%. As of 12:24 p.m. ET, Aurora shares were still down 38.8%. At the same time, Tilray (NASDAQ: TLRY) shares were down 3.6%, and Hexo (NASDAQ: HEXO) stock was down 5.3%.
The plunge in Aurora shares comes as existing shareholders react to a new round of financing that the company said will bring $150 million to the company. The funding comes from a bought deal financing agreement with underwriters for 61.2 million units at a share price of $2.45 per share.
The stock has only seen a level that low once this year, and it represented a drop of 10% from the share price when the deal was initially announced. The units also include one common share purchase warrant that will be exercisable at a price of $3.20 for a period of 36 months.
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Why Aurora Cannabis' 39% Drop Is Leading the Marijuana Sector Down Friday