Constellation Takes $133 Million Loss On Canopy InvestmentAugust 27, 2019
Constellation will take a $133 million loss on its investment in Canopy Growth for the six months ended August 31, the company revealed in an SEC filing yesterday. That includes a $54.3 million loss for the latest three-month period. Constellation now holds a 36.5% stake in the Canadian cannabis company.
Canopy, whose lack of profitability contributed to the departure of former CEO Bruce Linton earlier this summer, took a net loss of C$1.28 billion ($960m) in the quarter ended June 30. However, C$1.18 billion ($885m) of that loss was due to an extinguishment of warrants relating to Constellation’s stake in the company. Excluding that, Canopy’s loss was closer to C$105 million ($78.8m) on net revenue of C$90.5 million ($67.9m), down slightly from C$94.1 million ($70.6m) the quarter prior.
In related news, Health Canada, the Canadian government’s public health department, has licensed Canopy Growth’s KeyLeaf extraction facility in Saskatoon, Saskatchewan. The facility will begin operations this fall and can extract up to 5,000 kg of cannabis biomass per day. It joins Canopy’s Tweed extraction facility in British Columbia and the company’s Smiths Falls headquarters as its third extraction site, and will play an important role in the production of value-added products like drinks and edibles.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.