We are in the throes of earning season and in the midst of all this information, the broader market went into a tailspin as equities slid over 800 points one day and bonds signaled recessionary fears.
It wasn’t much better over in the cannabis sector either.
Canopy Growth Corporation (CGC) stock dropped over 10% after the company announced first quarter with net losses of C$1.28 billion which dwarfed last year’s losses of C$91 million. The loss was attributed to a non-cash charge of $1.2 billion in Canopy’s extinguishing warrants related to the Constellation Brands Inc. (NYSE: STZ) investment.
Zenabis Global Inc. (TSX:ZENA) (OTC: ZBISF) reported that its second-quarter net revenue rose 78% to $25 million from last year’s $4.1 million but The company also delivered a net loss of $18.5 million. Zenabis said that it expected net cannabis revenue to be in the range of $10 to $12 million but the actual net cannabis revenue for the period was $7,2 million.
Charlotte’s Web Holdings, Inc. revenue grew 45% to $25 million over last year’s $17.2 million for the same time period. Unfortunately, the net income fell to $2.2 million from last year’s $3.7 million
Tilray’s second-quarter revenue increased 371.1% to $45 million but the company reported a net loss of $35.1 million compared to a loss of $12.8 million last year.
MedMen (MMNFF) reported that its revenue rose 15% sequentially to $42.0 million not counting pending acquisitions. The company also had to amend its deal with Gotham Green to reflect the company’s much lower stock price.
One of the brightest earnings for the week was Trulieve which reported revenue of $57.9 million, an increase of 30% sequentially and net income of $57 million. Not a net loss!
CannTrust said it received a report from Health Canada telling the company that “Its manufacturing facility in Vaughan, Ontario has been rated non-compliant with certain regulations.” The stock is dropped over 25% on the news that the company has continued to have issues with facilities failing inspections.