Aurora Cannabis Inc. appears to have listed its greenhouse in Exeter, Ont. for sale for $17 million, a move that one analyst said “implies massive writedowns” are coming.

A listing on Cushman & Wakefield’s website advertises a 22-acre greenhouse with a 15,000-square-foot propagation area on Exeter’s Airport Line, the same location as a greenhouse Aurora obtained as part of its $3.2 billion acquisition of MedReleaf Corp. in 2018.

“This listing, for 75 [per cent] of former MedReleaf’s capacity, signals major writedowns ahead,” MKM Partners analyst Bill Kirk said in a note published Monday. “We are also discouraged with the visibility of Aurora’s strategy — investors were unaware Aurora was trying to sell Exeter,” despite a corporate update on Dec. 23. That same day, Aurora said Chief Corporate Officer Cam Battley would depart.

Aurora didn’t immediately respond to a request for comment.

Kirk said he expects $2 billion worth of writedowns. Aurora’s market value was $2.8 billion at Friday’s close and the company had C$3.9 billion of goodwill and intangibles on its balance sheet. “We believe more divestitures are likely, as Aurora has a major cash problem, and this listing only covers about two weeks of cash burn,” he added.

The company mentioned the Exeter greenhouse in its 2018 annual report, citing 105,000 kilograms per year of cultivation capacity. However, it wasn’t mentioned in its 2019 annual report and hasn’t been mentioned in any press releases since the MedReleaf deal closed.

“As far as we can tell, the facility was never licensed, and no product was ever sold from Exeter,” said Kirk, who rates Aurora a sell with a $2 price target.

Aurora closed Friday at $2.60, down 63 per cent over the past 12 months.

Cannabis Canada is BNN Bloomberg’s in-depth series exploring the stunning formation of the entirely new — and controversial — Canadian recreational marijuana industry. Read more from the special series here and subscribe to our Cannabis Canada newsletter to have the latest marijuana news delivered directly to your inbox every day.