Canopy Growth Corp. reported a net loss of nearly $1.3 billion as higher expenses offset revenue growth in the first quarter.
Canopy reported Wednesday it lost $1.28 billion during the three months ended June 30, its fiscal first quarter of 2020, compared with a loss of $91 million in the first quarter of fiscal 2019.
The loss equalled $3.70 per share, compared with a loss of 40 cents per share in the prior year. The surge in revenue was offset by a 215 per cent increase in operating expenses to $229.2 million.
The company based in Smith Falls, Ont., said the increased loss is mainly due to a non-cash loss of $1.18 million on the extinguishment of warrants held by alcohol giant Constellation Brands Inc., which invested $5 billion last November.
It also saw a significant decrease in quarter-over-quarter gross margins, or the spread between sale price and costs, as the company has been focused on investing in rapid expansion.
Gross margin before fair value impacts in cost of sales in the quarter was $13.2 million, or 15 per cent of net revenue. In the same quarter of 2019, that metric amounted to $11.1 million, or 43 per cent of net revenue.
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