Canopy Growth to focus on core markets, looks to win back market share amid steep Q4 loss

Canopy Growth is trying to turn itself around to profitability, but it appears it will take a little longer than earlier expected to get there. The Smiths Falls, Ont.-based company announced disappointing fourth-quarter results on Friday, with revenue declining 13 per cent from the prior quarter and a steep $1.3-billion loss. The results caused Canopy's stock to plunge by more than 20 per cent in trading on the TSX. Canopy CEO David Klein spoke to BNN Bloomberg and acknowledged the company had several "missed opportunities" in the Canadian market due to quality and inventory issues with certain products. In an earlier call with analysts, Klein said he expects the next year to be "transitional" for the company as it shifts its focus to its core markets of Canada, the U.S. and Germany.

CannTrust gets licence reinstated from regulators to grow, sell cannabis again

CannTrust got its licence back. The beleagured cannabis company said Friday that Health Canada has reinstated the licence for its Fenwick, Ont. facility after addressing the company's "regulatory deficiencies," clearing the way to resume operations at that location. CannTrust said it has started to cultivate cannabis at that facility, while it still awaits an update from federal regulators on its Vaughan, Ont. processing plant. Health Canada suspended CannTrust's licences in September after an inspection earlier that year uncovered thousands of kilograms of pot grown in unlicensed rooms.   Household spending on pot rises 5.5% to $7.26B in Q1, StatsCan says
Canadians keep snapping up cannabis. Household expenditures on cannabis totaled $7.26 billion in the first quarter of the year, up 5.5 per cent from the prior quarter, according to Statistics Canada. The increase can likely be attributed to the initial sales of so-called "Cannabis 2.0" products such as edibles and vapes to the Canadian recreational pot market. Cannabis joins other consumer products that saw spending increases in the first quarter of the year, as food spending rose 7.2 per cent and alcohol up about 6 per cent.

Organigram restructures debt deal with BMO, lenders

Organigram Holdings said Friday it struck a deal with the Bank of Montreal to modify the terms of some of its debt. Organigram has a $115-million term loan and $25-million credit facility with BMO as well as three other lenders, the company said in a statement. The new agreement extends the final draw deadline for the term loan to the end of July, adjusts certain financial ratios the company needs to adhere to, and removes the option to increase the loan by an additional $35 million. Raymond James analyst Rahul Sarugaser said in a report that Organigram will remain "unhindered" by the new lender adjustments given the company's "very positive current trajectory."

TerrAscend reports profitable U.S. business, $34.8M in total revenue in Q1 results

Toronto-based cannabis producer TerrAscend said late Thursday that its first quarter revenue was $34.8 million while booking $4.9 million in positive adjusted EBITDA. The company, which said it remains focused on its U.S. expansion strategy, said its Canadian business posted a quarterly loss, while its U.S. arm remains profitable. TerrAscend provided an outlook for its next quarter, stating it anticipates sales will rise by about 30 per cent to $45 million. AltaCorp analyst Kenric Tygne said in a report that TerrAscend's cost management is "impressive" and its margin growth should expand further this year.
 

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