The world's largest pot company said on Thursday that Canadian sales of entertainment have declined since the previous quarter but continue to promise increased marijuana production to meet demand.
Canopy Growth Corp.
(19459006) + 1.44%
reported fourth quarter fiscal net losses of $ 323.4 million, or 98 cents per share, from a loss of 54.4 million US dollars, or 98 cents a share, in the previous quarter. Much of this loss – more than $ 130 million – was on paper, as Canopy had to report its share price growth in the first three months of the calendar year due to the company's convertible debt rules. However, the company claimed an operating loss of $ 1
Revenue, net of excise duties, rose to US $ 94.1 million. from $ 22.8 million in the previous period and increased consistently from $ 83 million in the third quarter. According to FactSet, analysts averaged losses of $ 95.2 million in net excise duties, analysts expect Canopy Growth to bank C $ 90.6 million in fourth-quarter earnings.
While total third-quarter earnings, when marijuana is officially legalized in Canada, holiday sales are not. Canopy said he had taken in $ 68.9 million in the quarter from sales of a leisure pot from C $ 71.6 million before the quarter when legal sales began two weeks in the quarter.
In its announcement, the company said that cannabis production is still growing to meet demand, with the crop doubled in its fiscal fourth quarter – the first quarter of the calendar – and is expected to double again in the current quarter . Canopy claims a profit of over $ 77 million in bio-assets or marijuana, which was produced in the quarter but not sold, which increases the end result.
Canopy announced the results just minutes before the end of the hours to close in the US and the shares closed the extended session by 0.7%. Shares registered in the US ended the regular session with 2.2% to $ 43.71, giving the company a market capitalization of US $ 15.1 billion in US dollars. The shares gained 62.7 percent so far this year, with the S & P 500 index
SPX, + 0.95%
increased by 17.8%.
In April, Canopy Growth said it plans to pay shareholders of the joint-stock company Holdings Inc. $ 300 million for the right to acquire an area in the future for $ 3.4 billion In stock. Shareholders of both companies approved the deal on Wednesday. Canopy said it plans to license several of its Acreage brands for the US market. Canopy Growth Quiet Chief Executive Officer for US Business Amps and More
Part of the reason Canopy Growth could make such a significant investment in the US – at a time when US multi-step cannabis companies can not easily access cash – that's Constellation Brands Inc.
STZ, + 0.77%
$ 4 billion investment in the company.
"If they did not have cash, then they would be unlikely to be able to make such a deal, as it would be very difficult to raise capital in the debt markets for the right to buy when those rights are not are sure soon, Analysts of Jeffreys Owen Bennett wrote in a note to customers when the deal was announced. For more information: For more information: Canopy Growth finds its American partner in Canvas Growth Canopy Growth
Canopy Growth advertises its investments in American hemp and cannabis or CBD operations from the farm bill last year. On Wednesday, the company said there were hemp or CBD operations in seven countries with a full capacity of 4000 acres. At present, she plans high-quality hemp plants and industrial hemp plants, suitable for textiles, proteins and bioplastics. It is not clear when US hemp operations will contribute to revenue, but it is likely that the company will easily transform such investments into marijuana production facilities if the US
In the past three months, Canopy Growth stock exchange trade declined by 7.3%, the S & P Index 500 rose by 3.6%.