Canopy Rivers lays off four, aims to cut costs by as much as 35%  

Canopy Rivers said Thursday it would look to reduce operating costs by at least 35 per cent in a move aimed at generating positive cash flow from operations during its next fiscal year. The cannabis venture capital firm also stated it will continue its plan to buy back up to 10 per cent of its stock. Canopy Rivers previously announced in March plans to buy back as much as 10.4 million shares over the next 12 months. A company spokesman said that four staff was let go as a result of its cost cuts. Canopy Rivers reports its next quarterly results on June 3.  

MedMen shares slump after reporting US$20.7M net loss in Q3\

Shares of U.S. cannabis retailer MedMen plunged on Thursday following the Wednesday release of company's third quarter results. MedMen reported an adjusted EBITDA loss of US$20.7 million in the quarter, better than the US$35.1-million loss in the prior quarter. The company's revenue was US$45.9 million in its Q3, up a modest 4.1 per cent from the prior quarter. Sales were impacted by an 8.6-per-cent decline from MedMen's California stores, although its new Illinois retail shops offset declines with US$6.7 million in revenue. Cowen analyst Vivien Azer said in a research note that MedMen's lack of gross margin growth will continue to "make profitability elusive.”  

Analysts expect Canopy Growth to report $222M net loss in Q4, $128.9M in revenue

Canopy Growth, the world's biggest cannabis company by market capitalization, reports its fourth quarter results early Friday with analysts expecting a net loss of about $222 million. The company's revenue is expected to rise about five per cent from the prior quarter to $128.9 million, Bloomberg data shows. Canopy is also expected to provide an update on the company's "strategic review" which was enacted by new CEO David Klein following a steady string of quarterly losses. The review has already led to the closure of several of Canopy's facilities, the departure of about 800 staff, and approximately $700 million to $800 million in impairment charges. 
 

DAILY BUZZ

Cannabis Canada is BNN Bloomberg’s in-depth series exploring the stunning formation of the entirely new – and controversial – Canadian recreational marijuana industry. Read more from the special series here and subscribe to our Cannabis Canada newsletter to have the latest marijuana news delivered directly to your inbox every day.