Aurora Cannabis Inc.  (NYSE: ACB) officially its final short form base shelf prospectus and suggested that its revenue will be at the high end of the previous guidance. The company said that following the divestiture of non-core subsidiaries during fiscal 2020, net revenue for the three months ending September 30, 2020, is expected to be comprised almost entirely of cannabis net revenue and expected to be at the high end of our previously announced $60 million to $64 million range.

This is still a sequential decline from the $67.5 million in the fourth quarter, which declined 3% from the prior quarter. The company has continued to see its revenues fall.

Aurora stock was falling over 4% to lately sell at $3.92. It’s a far cry from the 52-week high of $47. The new offering, which could deliver as much as 100 million new shares, will dilute the current shares. Aurora Cannabis already had over 120 million shares outstanding and 19% of those shares are shorted – meaning those traders are betting the price per share will fall.

Aurora also said it expects adjusted gross margin before fair value adjustments on cannabis net revenue to be at the high end of its previously announced 46%-50% range. SG&A costs (including R&D) for the three months ended September 30, 2020, are expected to be in the low $40 million range after excluding certain one-time contract and employee termination costs. Aurora continues to expect to achieve positive adjusted EBITDA in the second quarter of fiscal 2021.

The filing of the shelf prospectus is expected to provide financial flexibility to execute against previously stated business objectives. The company expects to be in full compliance with all financial covenants as of September 30, 2020, under our amended and restated credit facility. Aurora’s relationship with the lending syndicate remains strong and there are no new obligations to repay any portion of the credit facility until its stated maturity date.