Aurora Cannabis: A Trio of Writedowns Likely Awaits – Motley Fool

The past 12-plus months have not been kind to marijuana stock investors. Following many years of outperformance and a first quarter (of 2019) that saw more than a dozen popular pot stocks gain at least 70%, cannabis stocks have been stuck in a perpetual downtrend ever since. In fact, most pot stocks have lost anywhere from 50% to 95% of their value since the beginning of April 2019.

This weakness can be blamed on exorbitant tax rates in the U.S. that have made it difficult for licensed producers to compete with illicit growers, and regulatory issues in Canada that have challenged the rollout of dried cannabis and derivative products.

A handful of dried cannabis buds lying atop a messy pile of cash.

Image source: Getty Images.

Aurora Cannabis is the marijuana industry’s biggest disappointment

But there’s not a marijuana stock that’s been more disappointing than Aurora Cannabis (NYSE:ACB). At one time, Aurora was projected to produce more cannabis per year (at its peak) than any other grower, and it had access to more overseas markets than any other licensed producer. And to this day, it still remains the most-held stock on millennial-focused online investing app Robinhood.

Unfortunately, Aurora Cannabis has been a veritable dumpster fire. The company continues to lose money at an extraordinary pace, and it appears to lack the cash needed to meet its expected liabilities over the coming 12-month period. For Aurora Cannabis, issuing its stock