A page in Aurora Cannabis's (ACB 12.87%) history is turning. The company announced that co-founder and former CEO Terry Booth relinquished his seat on the board of directors effective this past Friday.
Aurora did not provide a reason for Booth's departure, nor has he made any public statements on the matter. It was not specified what he plans to do after stepping away from the company. His move comes less than two weeks after another co-founder and board member, Steve Dobler, did the same.
In the press release announcing the transition, Aurora heaped praise on Booth, saying that "[h]e helped set the table for the company to lead in Canada and globally, and we continue to execute our plan to do so profitably."
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The company hasn't generally been profitable in the past. In numerous instances, it has disappointed its investors with worse-than-expected losses and/or top-line growth. Earlier this year, Aurora posted a net loss equivalent to nearly $1 billion in the second quarter of fiscal 2020.
Although marijuana businesses have held up better than companies in other corners of the economy during the coronavirus pandemic, they are struggling with difficult conditions within their industry.
Marijuana laws in the potentially huge U.S. market are a patchwork, with only a handful of states fully permitting both recreational and medical forms of the drug. In some states, taxation is excessive, driving would-be customers into the arms of the black market. Cannabis companies are effectively prohibited by law from using even the most basic banking and financial services.
Aurora's stock inched up by 0.5% on Tuesday, lagging behind the top equity indexes' gains on the day.
