Aurora Cannabis Inc. has announced that it is promoting Miguel Martin to be the company’s chief executive officer. This comes at a time when the company is planning massive write downs meant to clean its past.
The company warned that its net revenue could plunge from the CA$75 million recorded in the third quarter to anywhere between CA$70 million and CA$72 million for the last quarter that ended on June 30 this year.
The new CEO takes the reins from the company’s Executive Chairman and now former interim CEO, Michael Singer. In a statement, Singer said that he was happy to hand over the top seat. He also acknowledged that he was confident that the company is now in a better position to prosper under its new CEO.
Singer has been Aurora cannabis’s interim CEO since February this year after the departure of the company’s founder Terry Booth. He lauded Miguel‘s strong commercial background as the reason he has risen to the helm. He also said that his resume stood out from all that had applied for the top job.
Miguel joined Aurora Cannabis after it bought his company earlier this year. Before the promotion, he was the chief commercial officer in charge of the company’s US operations.
The company predicted impairment charges of between $1.6 billion to $1.8 billion when it would table its fourth-quarter results on September 22. The impairment includes “production facility rationalization charges of up to CA$90 million and an inventory worth CA$140 million, mostly made of cannabis trim.
The company also announced the termination of its partnership with the Ultimate Fighting Champion league. The termination will cost it $30 million.
Aurora Cannabis is among several other cannabis companies currently scaling down their growth after years of overinvestment.