Canopy Growth Corp. shares were down more than 10 per cent Thursday after the cannabis producer reported first quarter results that widely missed analysts’ expectations.
Canopy reported Wednesday it lost $1.28 billion during the three months ended June 30, its fiscal first quarter of 2020, compared with a loss of $91 million in the first quarter of fiscal 2019.
The loss equalled $3.70 per share, compared with a loss of 40 cents per share in the prior year.
The Smith Falls, Ont.-based company said the increased loss is mainly due to a non-cash loss of $1.18 billion on the extinguishment of warrants held by alcohol giant Constellation Brands Inc., which invested $5 billion last November.
The company generated $90.5 million in net revenues, up from $25.9 million a year earlier, before recreational marijuana was legal in Canada.
Analysts had predicted the company would book a loss of 70 cents per share on $107.1 in revenue, according to financial data firm Refinitiv.
Canopy shares were down $4.45, or 10.45 per cent, at $38.12 in mid-morning trading on the Toronto Stock Exchange, the lowest level since January.
In July, the company’s co-chief executive and board member Bruce Linton was pushed out a week after Constellation Brands it was “not pleased” with Canopy’s recent year-end results.
Canopy appointed Mark Zekulin CEO and said he will work with the board to begin a search to find a new leader to guide the company in its next phase.