Cannabis producer Canopy Growth smoked by restructuring charge

Sales trailed Wall Street estimates of C$128.8 million.

Canopy Growth Corp.’s fourth-quarter loss widened after a C$743 million restructuring charge.

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The Ontario, Canada-based cannabis producer lost C$1.3 billion, or C$3.72 per share, as net revenue spiked 15 percent to C$107.9 million. Wall Street analysts surveyed by Refinitiv were expecting revenue of C$128.8 million.

TickerSecurityLastChangeChange %
CGCCANOPY GROWTH CORP16.45-0.02-0.12%

“I am excited to implement our strategy reset and organization redesign over the course of fiscal 2021,” CEO David Klein said in a statement.

Canopy Growth's new strategic plan aims to win in its core markets of the U.S., Canada and Germany, with a focus on recreational as well as medical sales while carving out a path to profitability.

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Canadian recreational revenue fell 28 percent from a year ago to C$49.8 million while medical sales in the country spiked 29 percent to C$14.9 million. International medical sales soared to C$20.7 million.

Canopy had $2 billion of cash on hand at the end of the three months through March, down from $2.3 billion at the conclusion of the prior quarter.

The company withdrew its previously announced financial guidance.

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Shares rose 2.99 percent year-to-date through Thursday, outperforming the S&P 500's 6.22 percent decline.