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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index fell 15.76 points to 159.43 Friday, while the Canadian Securities Exchange Composite Index gained 2.11 points to 383.7. Much of the S&P/TSX Cannabis Index's fall was from Canopy Growth Corp. (WEED), which sank $6.36 to $24.21 on 10.36 million shares after reporting its fiscal Q4 and full-year 2020 results for the period ended March 31. Evidently, the results disappointed the market. For one, Canopy had an adjusted EBITDA loss of $102-million in fiscal Q4, worse than its fiscal Q3 adjusted EBITDA loss of $92-million and much worse than analysts' expectation of $88.6-million. Canopy's selling, general and administrative (SG&A) expenses also rose 17 per cent from Q3 to Q4. Over all, Canopy recorded a whopping loss of $1.3-billion in Q4, which included $743-million in impairment charges.
Further, Canopy reported Q4 revenue of just $107-million, again much worse than both its Q3 revenue ($123-million) and analyst expectations ($128-million). For Canopy shareholders, the declining revenue came with little explanation. The company simply said the lower revenue was primarily because of a drop in its revenue from recreational sales in Canada.
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