Following the market close on Wednesday, Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) filed an amended report for its three and nine months financials ending December 31, 2018, and in doing so the company’s losses doubled. The report wasn’t issued until 11 pm yesterday evening.
In a company statement, Canopy said that the correction of the Adjusted EBITDA loss for the nine months jumped from C$69,006,000 to C$155,154,000. “The correction was made due to a formula error in the spreadsheet supporting the year to date Adjusted EBITDA loss calculation. The Adjusted EBITDA loss for the three months ended as December 31, 2018, was correct as reported, as were all prior quarters as released.”
An C$86 million error was blamed on a formula problem in a spreadsheet.
The net revenue for the nine months was C$132 million, but the net losses for that time period were C$349 million. The loss from operations for these nine months was C$402 million.
As of December 31, 2018, the company has cash and cash equivalents of C$4.1 million. “The increase from the end of fiscal 2018 was mainly due to the investment of an approximately $5,000,000 by Constellation Brands on November 1, 2018, issuance of convertible senior notes with an aggregate principal amount of $600,000 offset by cash used to fund operations of $294,949, cash used for the acquisition of subsidiaries and investments in facility enhancements totaling $568,236.”
Canopy did not go into any additional detail as to how such an enormous mistake could have been made. The company did say that no changes were required to Canopy’s unaudited condensed interim consolidated financial statements for the three and nine months ended December 31, 2018 (filed on February 14, 2019). The statement went on to say, “Other than as expressly set forth in the Amended MD&A, the Amended MD&A does not purport to update or restate the information in the Original MD&A or reflect any events that occurred after the date of the filing of the Original MD&A other than changes to the sections entitled Results of Operations, Third Quarter Review, and Adjusted EBITDA (Non-GAAP Measure).”