Jefferies reiterated its underperform rating on the stock of Aurora Cannabis Inc. /zigman2/quotes/210559470/composite ACB +5.20% /zigman2/quotes/203734337/delayed CA:ACB +5.16% on Thursday, after the company filed a shelf registration with the Securities and Exchange Commission to issue up to $1 billion of securities. "We had recently flagged the need for additional capital for a US push and therefore, given how critical the US is, this announcement should be viewed as welcome," analyst Owen Bennett wrote in a note to clients. "What it does confirm, however, is the disconnect between the Aurora, and broader Canadian, valuations and reality. The current multiple already arguably reflects some degree of US success, but that success has to be won first." Bennett had written recently that Aurora needed more cash to compete in the U.S. CBD space, never mind the U.S. THC space, and said he expected institutional investors would avoid the stock in favor of U.S. multi-state operators, given the growing expectations of reforms of the U.S.' strict cannabis laws. "We would suggest that this $1bn shelf, viewed alongside a recent $2bn shelf announced by Canopy /zigman2/quotes/200603886/composite CGC +3.74% /zigman2/quotes/202205609/delayed CA:WEED +3.51% , confirms the task at hand for Canadian operators to be able to establish a strong US foothold," he wrote. "We would also note here that Canopy already has a cash balance of C$825mn. While Aurora had a cash balance of C$565mn as end of Q2, it has debt of C$187.6mn due <12 months, and another C$144mn 1-3 years." Aurora shares were up 2.3% premarket, but have fallen 4.4% in the last 12 months through Wednesday, while the Cannabis ETF /zigman2/quotes/213173823/composite THCX +3.81% has gained 151% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.74% has gained 42%.