Aurora is burning cash, and the company could run out of cash by the first quarter of 2020. One problem is that there's around $177 million of convertible debentures coming due in the first quarter of next year. Those debentures could be converted into Aurora stock. However, the conversion price is 13.05 Canadian dollars per share ($9.98 per share). If Aurora's share price is below that level (as it is now), the company will have to pay off this debt. There's a solid reason why investors should exercise caution with buying Aurora stock right now.
Aurora is burning cash, and the company could run out of cash by the first quarter of 2020. One problem is that there's around $177 million of convertible debentures coming due in the first quarter of next year. Those debentures could be converted into Aurora stock. However, the conversion price is 13.05 Canadian dollars per share ($9.98 per share). If Aurora's share price is below that level (as it is now), the company will have to pay off this debt.
There's a solid reason why investors should exercise caution with buying Aurora stock right now.