Aurora Cannabis

Historical capital allocation destroyed value via overbuilt capacity and acquisitions that led to large impairments.

Recent moves are more disciplined: a strategic focus on high‑margin medical, exit of certain Canadian consumer markets, and a pending Bevo transaction to deconsolidate plant propagation in exchange for preferred shares, dividends and a share of cash flows.

However, reliance on non‑GAAP metrics, recurring “business transformation” adjustments, and launching a sizable ATM limit our enthusiasm. Until the company demonstrates sustained positive TTM FCF and refrains from equity issuance except for truly accretive uses, we judge capital allocation as below average.