Aurora names Miguel Martin CEO with immediate effect, to book up to C$1.8 billion in impairment charges

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Canada’s Aurora Cannabis Inc. said Tuesday it has named Miguel Martin chief executive with immediate effect, replacing Interim CEO Michael Singer who will remain executive chairman. Martin is a former CEO of Reliva, who assumed the role of chief commercial officer of Aurora in July. Before that, the executive was president of Logic Technology, a maker of e-cigarettes. He has also done stints at Altria Inc. . Aurora also offered a business update, forecasting fiscal fourth-quarter revenue of C$70 million to C$72 million, which compares with a FactSet consensus of C$77 million. The company will record up to C$1.8 billion in goodwill impairment charges in the quarter, it said. The charges relate to fixed asset impairment charges of up to C$90 million, a charge of about C$140 million in the value of certain inventory, mostly trim. “Although the business prospects for Aurora remain strong, under IFRS, management is required to recognize the impact of overall industry risk, and to consider the book value of the Company relative to current market capitalization,” Aurora said in a statement. “Accordingly, the Company expects to recognize a non-cash write-down of goodwill and intangible assets in the range of $1.6 to $1.8 billion.” The company will also book a charge of $30 million to terminate its contract with the UFC, which is expected to avoid charge of more than C$150 million in fees, research costs and marketing costs over the next five years. U.S.-listed shares were slightly lower premarket, but have fallen 67% in the year to date, while the Cannabis ETF has fallen 24% and the S&P 500 has gained 6%.
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