- Canopy Growth (TSX:WEED) stock continued its slide after reporting its Q4 and fiscal year 2023 financial results
- The company reported a net loss of C$648 million in Q4, C$59 million more than the company sustained a year earlier
- Its net revenue for the fiscal quarter ending March 31 totalled C$88 million, 14 per cent lower than a year ago
- Canopy Growth Corp. (WEED) opened trading at $0.72 per share
Canopy Growth (TSX:WEED) stock continued its slide after reporting its Q4 and fiscal year 2023 financial results.
Canopy Growth reported a net loss of C$648 million in Q4, C$59 million more than the company sustained a year earlier. It attributed much of the loss to C$164 million in asset impairment and restructuring costs.
Its net revenue for the fiscal quarter ending March 31 totalled C$88 million, 14 per cent lower than a year ago.
Canopy Growth Corp. stock – Dec 2022 to June 2023.
The cannabis company’s stock lost more than 7 per cent in early Friday trading.
Canopy Growth stock has shed more than 98 per cent of its value since 2019.
Having closed multiple production facilities, the company’s chief executive officer, David Klein, called 2023 a “transformational year” for Canopy Growth, as the team implemented a strategy to accelerate its path to profitability and position the business to realize the opportunities ahead.
“Our actions are already yielding results and we expect to realize significant benefits from our cost reduction program in fiscal 2024. Paired with continued progress in our Canopy USA strategy which enables a fast start, the company is well positioned as it strives towards its goal of long-term North American cannabis leadership,” Klein said in a statement.
Canopy Growth is undertaking a restructuring plan that has included the departure of 800 staff, roughly 35 per cent of its workforce, since February of this year.
In other news, the company announced that it is laying off some staff at its BioSteel sports nutrition unit. Canopy Growth encountered problems with the financial results reported by its BioSteel division, claiming it made “material misstatements” in previous financial filings. Now Canopy is being investigated by the Securities and Exchange Commission.
Jakubowitz Law firm is appealing to shareholders in a securities fraud class action lawsuit, claiming that Canopy Growth issued materially false and / or misleading statements and / or failed to disclose there were material weaknesses in the company’s internal controls over accounting and financial reporting.
Headquartered in Smiths Falls, Ontario, Canopy Growth cultivates and sells medicinal and recreational cannabis, and hemp, through a portfolio of brands that include Tweed, Spectrum Therapeutics and CraftGrow. Although it primarily operates in Canada, Canopy has distribution and production licenses in more than a dozen countries to drive expansion in global medical cannabis.
Canopy Growth Corp. (WEED) opened trading at $0.72 per share.
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