Thursday, August 15, 2019

Canopy Growth loses $1.28-billion in fiscal Q1 - WEED

Canopy generated $90.5m in net revenue for its first fiscal quarter of 2020, versus $94m in its previous quarter. Expectations were of at least $110m in net revenue. A $1.176 billion loss was attributed to a non-cash extinguishment of warrants held by Constellation Brands. This adjustment came from Canopy Growth's deal to acquire U.S.-based cannabis operator Acreage Holdings.
Canopy promises an annualized revenue of CA$1b by the end of fiscal year 2020 and to become profitable within the next three to five years. Investors have every right to be skeptical about such predictions.