ACB stock price after consolidation of shares.

I only recently got into trading.. thinking this dip in the markets is my time to start investing. I had $2250 to spare so I bought around $150 ACB shares at a $1.. with minimum research i saw only good things about ACB and that with time this will turn into a good investment (it's weed, after all). But lesson learned.. never did I come across a reverse stock split news and I hadn't even heard of the term before waking up this monday morning to see N/A next to the ACB holding (i use wealthsimple) - my shares went from 150 to 12 and some cash.

I sold my ACB shares at the highest price possible the next day and have put my money some other places, like Manulife.

I want to know, what's the best way to keep up to date on companies and such major decisions? I may not have the time to read full reports but want to bring something like a reverse stock split to my attention before this happens again. I don't necessarily want "buy" or "sell" alerts, just something that is news that I should be aware of if I've invested in a company.  How do you keep track of all the companies in your portfolio? Just go with the news? Yahoo finance, company website, etc?

thanks!

Stephen,

I will also add that a stock split changes nothing about the company. Fundamentals remain the same, the only effect will be psychological one. In the case of reverse splits, it is usually a negative impact.

Bottom line - never make a decision based on a stock split alone. It does not change the fundamentals of the company.

Mat

And actually Stephen, from the press release on Aurora's split, you'll be rounded down or up in terms of shares, not given cash:

"The Company will not be issuing fractional post-Consolidation Common Shares in connection with the Consolidation. Where the Consolidation would otherwise result in a shareholder being entitled to a fractional Common Share, the number of post-Consolidation Common Shares issued to such holder of Common Shares shall be rounded up or down to the nearest whole number of Common Shares."

I didn't edit my first answer as a lot of companies do give you cash for excess shares. So it's good to leave that in there as some knowledge, but just know in this case, you'll be rounded.

Hey Stephen. This will have a pretty drastic effect on the company's share price.

Aurora is doing this because exchanges require a minimum share price. Aurora is far off its highs of $12 back in 2019, and is trading right now for under $1.

To keep the explanation simple, I'm going to say that Aurora trades at exactly $1. If you hold 12 shares of the company, after this reverse stock split, you'll now own 1 share at $12.

If you own 15 shares of Aurora, you'll receive 1 share and cash for the remaining 3 shares.

Reverse stock splits don't change the value of the underlying company, but they're generally signs of troubling times for the company ahead.

Hope that helped you, let me know if you need any other information.