Canadian marijuana producer Hexo Corp. reported a web loss of 170 million Canadian {dollars} ($127 million) for its fourth quarter, ending its 2020 fiscal year with a CA$546 million loss.

The quarterly loss accounts for stock write-downs (CA$42 million), impairment (CA$46 million) in addition to a CA$54 million loss on the inducement of convertible debentures.

The Ottawa, Ontario-based firm’s web income for the quarter ended July 31 was CA$27 million, up nearly 23% from the earlier quarter.

That was principally pushed by gross sales of drinks, which reached CA$2.4 million, in addition to the graduation of worldwide gross sales, which got here in at CA$1.3 million.

However, Hexo seems to be producing considerably extra hashish than it’s promoting.

In the quarter, the corporate offered about half the 16,540 kilograms (36,464 kilos) of hashish it produced.

Hexo additionally introduced a proposed consolidation of its widespread shares on an 8-to-1 foundation in a bid to stay listed on the New York Stock Exchange.

In April, the corporate was warned by alternate that its shares, which have fallen under $1, don’t meet itemizing requirements.

Hexo has till Dec. 16, 2020 to regain compliance.

Shareholders will vote on the share consolidation plan on Dec. 11.

Hexo ended the interval with CA$184 million in money after holding two financing rounds within the quarter.

The firm’s shares commerce as HEXO on the New York Stock Exchange and Toronto Stock Exchange.



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