- The company posted a net loss of $1.33B, largely connected to the cost of shutting down two Tweed facilities in BC. It also wrote off $132M in “obsolete” packaging, dry-flower, and biomass.
- REC revenue for Canopy (including business-to-business transactions) declined 28% from last quarter to $49M.
Canopy has lost REC market share (from low 20%s to above 15%), and CFO Mike Lee acknowledged “missed opportunities” in not shifting more quickly to value products.
MJ Biz Daily
- CEO David Klein praised competitor Aurora’s Daily Special as “a good product at a really good price.”
- The slow rollout of 2.0 products also hobbled revenues.
- “Regardless of who’s in the White House,” Klein predicted the US “will have something akin to federal permissibility, maybe in 2022, possibly 2025 at the outside.”
Canopy’s investment arm Canopy Rivers also announced plans to “optimize its organizational structure, streamline operations, and preserve and maximize cash-on-hand” by cutting expenditures 35%. As part of those cuts, they closed The Rise, the cannabis-business publication the company launched six weeks ago on 4-20.
NewsWire, Twitter–@JamesonBerkow, @BePartoftheRise