On Tuesday, Aurora Cannabis (NYSE:ACB) announced a potentially massive 1.8 billion CAD ($1.37 billion) write-down for Q4. Simultaneously, the Canadian marijuana company announced it has chosen a new CEO, its Chief Commercial Officer Miguel Martin. The market reacted with shock, sending ACB stock down 12% before recovering.
But it’s a trick that other companies have long used.
When struggling companies need to offload past bad decisions, they throw the old CEO under the bus. Hewlett Packard (NYSE:HPQ) famously did that in 2012 when they fired CEO Leo Apotheker while writing off $8.8 billion on its failed Autonomy acquisition. It cleans the slate for the new CEO.
Aurora Cannabis, however, will need far more than blame-shifting to survive. Here’s what Aurora stock investors need from the next CEO.
ACB Stock: The Weakest Link in the Promising Cannabis Industry
Readers will know that I have long eyed the legal cannabis industry. Americans spend…