Written by Aditya Raghunath at The Motley Fool Canada
Aurora Cannabis (TSX:ACB) has arguably been the worst-performing marijuana stock in the last five years. Valued at $283 million by market cap, shares of the licensed cannabis producer are down 99% from all-time highs, burning massive investor wealth in the process.
Aurora Cannabis stock was trading at record highs in 2018, just before Canada legalized marijuana for recreational use. During that period, investor optimism was buoyant, resulting in steep valuations for most Canadian cannabis producers.
Aurora Cannabis and its peers plowed in capital to scale up their manufacturing capabilities and gain traction in multiple markets. Further, these companies acquired smaller competitors at a hefty premium to gain market share.
However, the cannabis market is heavily regulated, resulting in the slow rollout of retail stores in major Canadian provinces. The rapid…
