Shares of Aurora Cannabis Corp. (NYSE: ACB) closed at $0.67 on Friday. Following a 12-for-1 reverse stock split, that stock will begin trading Monday morning at $8.06. The reverse split was necessary in order to maintain Aurora’s listing on the New York Stock Exchange.

Aurora has been making other moves, including at-the-market (ATM) share offerings and changing its chief executive. Trouble is, reducing the share count doesn’t really fix anything.

Aurora has been able to slow its cash burn. At the end of March, the company reported cash of around $205 million.

The ATM prospectus allowed for the sale of up to $400 million of common shares by registered dealers on behalf of Aurora through the New York Stock Exchange at prevailing market prices at the time of sale. The company has exhausted this source.

Last November, holders of some C$227 million in near-term debt converted their debt to common stock. At the end of 2019, just C$2.3 million had not been converted. Aurora also listed its grow facility in Exeter, Ontario, for sale at C$19 million (since reduced to C$17 million). The facility was a major part of its MedReleaf acquisition.

In March, the company reduced its term loan facility by C$96.5 million. It did so by eliminating its undrawn capacity and using C$45 million to repay a portion of its draw on that loan.

Following these changes, C$50 million remains in the company’s revolver, as well as C$507 in senior secured term loans and senior unsecured convertible debt. Aurora does not want to borrow more.

Aurora has indicated that it plans to offer another $350 million in new shares in small ATM offerings.

Aurora Cannabis stock traded up about 2.6% at $8.27 in Monday’s premarket session. On a pre-split basis, Aurora’s 52-week range is $0.60 to $9.00.

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