Federally licensed producer Hexo recorded net revenue from cannabis of 14.5 million Canadian dollars ($11 million) in its most recent quarter, down slightly from the previous quarter’s CA$15.4 million.
The Gatineau, Quebec-based company’s net loss widened to CA$62.4 million in the period ending Oct. 31 from CA$56.7 million in the last quarter.
About three-quarters of the 4,009 kilograms of adult-use cannabis shipped in the quarter went to Quebec’s monopoly cannabis retailer – Société québécoise du cannabis (SQDC) – the company said.
The Quebec company disclosed an error related to a deferred tax liability for the fiscal year ended July 31, 2019 – resulting in the net loss for the year ended July 31, 2019 was overstated by CA$14.3 million.
Hexo did not state when it plans to resume production at its Niagara facility, which it suspended in an effort to “rightsize its operations” and focus on profitability.
In a regulatory filing, Hexo’s management said its working capital (CA$150 million) along with a recently completed financing (CA$70 million private placement) “sufficiently provides the level of funding required for current expansion projects and meet contractual obligations for the next 12 months.”