Hexo says new value brand drawing ire from illicit market, books steep impairments in Q2
Hexo Corp. booked two separate impairment charges totalling $250 million when reporting its second quarter results on Monday, most of which was attributed to its Niagara facility it took over when it acquired Newstrike Brands. The impairments contributed to Hexo reporting a $289.4 million net loss in the second quarter despite an increase in revenue and cannabis production, the company said on Monday. The company also reported an adjusted negative EBITDA of $10 million in the quarter. Hexo CEO Sebastien St-Louis said the company is focusing on becoming profitable in Canada, while stating the launch of infused beverages under its Truss joint venture should come later this year.
MediPharm Labs' Q4 revenue declines due to 'oversupply' of cannabis extract
Cannabis extractor MediPharm Labs said it made $32.4 million in revenue in its fourth quarter results, down from the prior quarter of $43.4 million. The company attributes the revenue decline to an oversupply of bulk cannabis extract in the market and decline in selling price and lower volumes. MediPharm said it also booked a net loss of $2.4 million, better than the $5.4 million loss it incurred in the prior quarter. MediPharm also said it reduced its workforce by 10 per cent due to the COVID-19 outbreak and is deferring non-essential capital expenditures.
MedMen taps third CEO this year, closes US$12.5M debt facility
U.S. cannabis retailer MedMen Enterprises has a new CEO. The company announced that Tom Lynch, partner of advisory firm SierraConstellation Partners, will take over as the company’s CEO and chief restructuring officer on an interim basis. MedMen's co-founder and previous CEO Adam Bierman left the company in January, leaving COO Ryan Lissack as the interim head. MedMen also said it closed a US$12.5 million convertible debt facility led by Gotham Green Partners, one of the company's main backers.
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