Thursday, November 14, 2019

Canopy Growth - WEED.t loses $374m

Canopy Growth (WEED.TO) reported a $374.6m net loss in Q2, more than double expectations. The company was hit with millions in charges related to product returns and price changes. It was a $32.7m charge for returns, return provision and pricing allowances for its line of softgels and oils, as well as a $15.9m charge for a new packaging and marketing strategy. The combined charges amount to $48.6m.

Our 'take-a-way' hasn't changed. Oils and extracts aren't selling whatsoever and there is roughly 5 times more pot being produced than can be sold.