Mr. Jordan Sinclair reports
CANOPY GROWTH CORPORATION FILES AMENDED AND RESTATED FISCAL YEAR 2017 FINANCIAL RESULTS
Canopy Growth Corp. has filed its amended and restated consolidated financial statements and amended and restated management's discussion and analysis for the year ended March 31, 2017, on SEDAR.
The restatement accounts for the following.
(i) The understated fair value of approximately 11-per-cent equity interest and options held by the company in AusCann Group Holdings Ltd. by $18.3-million and $5.7-million, respectively, at March 31, 2017, which was previously carried at its cost base of nil being the consideration paid for the minority interest.
The company has classified its equity interest in AusCann as an available-for-sale financial asset, an international financial reporting standard term. The options represent a derivative financial instrument that is initially recognized at fair value and subsequently remeasured to its fair value at the end of each reporting period. Prior to Feb. 3, 2017, the AusCann shares did not have a quoted market price, the fair value of its equity interest and options in AusCann could not be reliably measured, and the equity interest and options were carried at their cost amount of nil.
In the quarter ended March 31, 2017, AusCann completed a capital reorganization and became listed on the Australian Stock Exchange. Following the initial public offering, the company's shares and options were all placed in escrow until Feb. 3, 2019.
(ii) The correction of an immaterial non-cash error in the valuation of biological assets at March 31, 2017, as previously disclosed in the condensed interim consolidated financial statements for the first quarter ended June 30, 2017.
As a result of the restatement, the company's reported net loss was reduced from $16.7-million to a net loss of $7.6-million.
Details of the changes are fully described in Note 2 to the amended and restated consolidated financial statements for the year ended March 31, 2017, as filed on SEDAR on Nov. 13, 2017.
About Canopy Growth Corp.
Canopy Growth is a world-leading diversified cannabis company, offering distinct brands and curated cannabis varieties in dried, oil and capsule forms. Through its wholly owned subsidiaries, Canopy Growth operates numerous state-of-the-art production facilities with over 500,000 square feet of GMP-certified indoor and greenhouse production capacity, all to an unparalleled level of quality assurance procedures and testing. Canopy Growth has established partnerships with leading sector names in Canada and abroad, with interests and operations spanning four continents. The company is proudly dedicated to educating health care practitioners, providing consistent access to high-quality cannabis products, conducting robust clinical research and furthering the public's understanding of cannabis.
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