Canopy Growth lays off unspecified number of people in latest strategic review round 

Canopy Growth confirmed Thursday that it conducted another round of layoffs tied to its ongoing strategic review. Canopy spokesperson Jordan Sinclair confirmed the workforce reductions to BNN Bloomberg and said that the moves were made with the company's long term health in mind. "As we look at the organization in the context of a more focused strategy, there are teams that will grow in size and teams that will experience layoffs," Sinclair said. He declined to specify how many staffers were laid off on Thursday. Canopy has reduced its workforce by over 800 since the beginning of the year as the cannabis producer looks to focus its efforts on more profitable ventures. 

Valens Q2 revenue down 45% from prior quarter amid margin pressure

Canadian cannabis extractor The Valens Company released second-quarter results late Wednesday, reporting a sequential quarterly decline in revenue by 45 per cent to $17.6 million. The company also reported a net loss of $3.5 million in the quarter, but posted an adjusted-EBITDA profit of $2.7 million. Raymond James analyst Rahul Sarugaser said in a report to clients that the revenue decline seen from cannabis extractors recently shows that "margin compression in the pure-play extraction market is real." He added that Valens' move toward white label manufacturing and higher-margin custom manufacturing is wise given the revenue impact from its more traditional extract businesses.   

Flower One Holdings sees Q1 revenue hurt by COVID-19 impact on Nevada tourism

Toronto-based Flower One Holdings, which produces cannabis in Nevada, reported first-quarter results late Wednesday that showed the company's revenues increased by 52 per cent to US$8.8 million from the prior quarter. Flower One, which operates two cultivation facilities in Nevada, also posted a US$6.4-million net loss, which the company attributed to a inventory write-down worth US$10.6 million. Eight Capital analyst Graeme Kreindler said in a note to clients that the company was on track to deliver monthly sales records, but those were halted d as COVID-19 forced Nevada to shut down its tourism industry in late March. Revenue was in in-line with pre-released figures, while adjusted gross margin and adjusted EBITDA missed expectations, Kriendler added. 
 

DAILY BUZZ

Cannabis Canada is BNN Bloomberg’s in-depth series exploring the ongoing growth of the Canadian recreational cannabis industry. Read more here and subscribe to our Cannabis Canada newsletter to have the latest news delivered directly to your inbox every day.