KushCo Holdings (OTCMKTS:KSHB) announced that they increased the size of the Board from five directors to six directors and appointed Pete Kadens as a new director, effective as of June 1, 2020 . Now that is going to push the stock to the moon, right?
For his service, Mr. Kadens will receive compensation commensurate with that received by the Company’s other non-employee directors, including an annual retainer of $50,000 paid in four equal quarterly installments. Additionally, the Board approved a one-time grant to Mr. Kadens of 30,000 restricted stock units (“RSUs”) as of the Effective Date, 10,000 of which vest on the first anniversary of the Effective Date, with the remaining 20,000 to vest in equal monthly installments over the following 24 months. In addition, the Board approved a grant to Mr. Kadens of $75,000 of RSUs, which will vest in equal monthly installments over a twelve-month period.
On the other side of the coin, with the latest quarterly report, Aurora Cannabis (NYSE:ACB) has finally provided more positive news. Business was extremely good in the early months of the coronavirus pandemic. Aurora said the company had sales of $ 78.4 million, an 18 percent increase over the previous quarter. Analysts had only expected Canadian $ 66.7 million to grow. Sales of recreational marijuana developed particularly strongly, increasing by 24 percent. Medical cannabis sales climbed 13.5 percent. The cash burn rate also developed very positively. This was only $ 154.5 million in the reporting quarter. In the previous quarter, it was $ 273 million in Canada.
But ACB share price is also going down for a couple of days already. The reason might be (besides common sense) the fact that Jefferies analyst Owen Bennett downgraded stock on May 22nd. Bennett sees persistent challenges that ACB continue to face , but Bennett raised his price target on ACB from $8.40 to $10 due to “longer-term optimism.” So, if the stock is now $15 he expect it to go 50% down. What a wonderful news.