10:38:48 EDT Tue 22 Sep 2020
Enter Symbol
or Name

Login ID:

Cannabis Summary for March 30, 2020

2020-03-30 19:39 ET - Market Summary

This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

The S&P/TSX Cannabis Index dropped 8.36 points to 134.12 Monday, while the Canadian Securities Exchange Composite Index fell 2.18 points to 280.08. Sebastien St-Louis's Quebec-based cannabis producer Hexo Corp. (HEXO) sank 43 cents to $1.10 on 11.79 million shares after releasing its fiscal second quarter results, which were prepared "on a going concern basis." The company lost an eye-popping $298-million in the second quarter, $250-million of which was from impairment charges.

A little over half of the impairment charges relate to the company's decision to list its Niagara facility, which was acquired in Hexo's acquisition of Newstrike Brands Ltd., for sale. (Hexo paid $263-million for its acquisition of Newstrike.) The company ran "impairment testing" and concluded that an impairment charge of $138-million was required. The rest was a $111-million impairment charge to goodwill that Hexo says was caused by slow store openings and regulatory delays for cannabis 2.0 products in Canada.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS

© 2020 Canjex Publishing Ltd. All rights reserved.

Reader Comments - Comments are open to paying subscribers of Stockwatch and unmoderated, although libelous remarks, obscene language and impersonations may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
For information regarding Canadian libel law, please view the University of Ottawa's FAQ regarding Defamation and SLAPPs.