17.4 C
Thursday, September 21, 2023

Cannabis Weekly Round-Up: HEXO Posts C$690.2 Million Quarterly Loss

A new cannabis company with an international focus reached the NASDAQ this past week with the backing of a US-based company in the space.

Also during the five day period, HEXO (NASDAQ:HEXO,TSX:HEXO) promised investors that its turnaround plans are working despite some critical losses in the most recent quarter.

Keep reading to find out more cannabis highlights from the past five days.

Halo spinoff reaches NASDAQ with promise of international moves

Halo Collective (NEO:HALO,OTCQB:HCANF) spinoff Akanda (NASDAQ:AKAN) was originally launched last summer, when Halo decided to break its international ventures off into a new company.

Some time after Akanda’s launch, CEO Tej Virk spoke with the Investing News Network about why he believes having an international focus creates investment potential.

In its NASDAQ debut this week, Akanda raised gross proceeds of US$16 million from an offering of 4 million common shares priced at US$4 each.

After a few healthy peaks in its trading value throughout the week, the company’s share price settled below US$10. As of 12:00 p.m. EST on Friday (March 18), Akanda was down 7.83 percent for a price per share of US$7.47.

“We believe Akanda is well-positioned to be one of the world’s leading platforms for medical cannabis, just as several international countries, including Germany, are moving increasingly toward legalization,” Kiran Sidhu, Halo’s CEO, said. “Halo is proud to be Akanda’s largest shareholder.”

​HEXO shares financial results, promises upside coming soon

Following the release of its Q2 2022 financial results, shares of Canadian cannabis producer HEXO opened on Friday in New York at US$0.57, lower than the company’s previous daily close.

As of 11:00 a.m. EST, HEXO was down in value by 0.32 percent and trading at a price of US$0.61.

The company reported a net loss of C$690.2 million for the quarter thanks in part to a one time impairment loss of C$616 million, attributable to a writedown geared at providing “a clean slate for future growth.”

HEXO reported a net revenue line of C$52.7 million, which represents an uptick from the previous quarter, when the company reported C$49.9 million for that line item.

Scott Cooper, president and CEO of HEXO, said he has prioritized cleaning up a “very challenged balance sheet.” The executive said he thinks the company has a strong foundation, which will lead the firm to “become a cash flow positive business within the next four quarters.”

HEXO finds itself in a difficult position, with its shares currently still infringing on the minimum share price rules for the NASDAQ. But Cooper and the rest of the executive team are betting on a turnaround thanks to a new strategic alliance agreement with Tilray Brands (TSX:TLRY,NASDAQ:TLRY).

​Cannabis company news

  • TerrAscend (CSE:TER,OTCQX:TRSSF) released its Q4 and year-end financial results for 2021. Jason Wild, executive chairman, highlighted the company’s results in Pennsylvania and New Jersey. The company reported a net loss for its Q4 period of US$5.9 million, but for the entire year TerrAscend was able to produce net income of US$6.1 million.
  • Flora Growth (NASDAQ:FLGC) informed shareholders it has received an export quota of 43,600 kilograms of THC cannabis product from the Colombian government. “We wish to thank the Colombian government, partners and regulators for working with Flora to build a framework for long term success in medical cannabis,” CEO Luis Merchan said said.
  • Tilray Brands confirmed the launch of EU GMP medical cannabis oil products in Malta. Denise Faltischek, Tilray’s chief strategy officer and head of international business said the demand for medical cannabis in Malta is “growing rapidly.”
  • Ayr Wellness (CSE:AYR.A,OTCQX:AYRWF) shared its financial results for Q4 and the full 2021 fiscal year. The company reported a net loss of US$16.9 million, despite posting Q4 net income of US$23.7 million. “Following this transformative year for our operating footprint, we are now squarely focused on making 2022 a transformative year for Ayr’s earnings power,” CEO Jonathan Sandelman said.

Don’t forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Source link

Related Articles

Latest Articles