Pot producer Canopy Growth reports grim results, stocks drop 13%

(Reuters) – Pot producer Canopy Growth Corp reported a larger fourth quarter loss on Friday caused by non-cash charges of $ 743 million related to recent restructuring and asset impairment.

The company’s US-listed stocks fell over 13% in premarket trading, dragging other industry stocks down between 2% and 5%.

Medical cannabis was the only bright spot, while Canopy’s revenue from leisure markets in Canada and internationally declined double-digit.

The COVID-19 pandemic, which upset the financial markets, was supposed to give cannabis companies a boost as customers had pot brownies and other products in stock to deal with lockdowns.

However, Canopy struggled to close most of its retail stores temporarily in mid-March and underwent a massive restructuring program that included divestitures and layoffs in its pursuit of profitability.

The Ontario-based Ontario-based Canopy Growth net loss increased from $ 379.5 million, or $ 1.10 per share, to $ 1.30 billion ($ 946.21 million) or 3 in the quarter ended March 31 , 72 CAD per share.

($ 1 = 1.3739 Canadian dollars)

(Reporting by Arunima Kumar and Shariq Khan in Bengaluru; editing by Maju Samuel)

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