The Globe and Mail reports in its Friday edition that Hexo expects fourth quarter sales to be much lower than previously estimated. The Globe's Niall McGee writes that Hexo shares shed $1.12 to close at $3.76. Hexo expects to sell about $15.5-million worth of product in the quarter ending July 31 -- 40 per cent less than previously forecast. As recently as June, it predicted $26-million in sales. Hexo also withdrew its previously predicted $400-million sales forecast for next year and did not provide a new estimate. Chief executive officer Sebastien St-Louis blamed the bleak sales forecast on a number of macro headwinds, including "slower than expected store rollouts, a delay in government approval for cannabis derivative products and early signs of pricing pressure." Hexo's warning had a negative impact on the entire sector. Canopy Growth, Aurora Cannabis and Aphria shares were down Thursday. Hexo is the latest Canadian cannabis company to blindside investors in the past few months. In August, Canopy posted a significantly bigger loss than expected in its latest quarter and pushed out the timeline to achieve profitability. Canaccord's Matt Bottomely says, "We're in a really turbulent patch right now."