Edition:
India

Canopy Says Achieving Q4 Fiscal 2020 Net Revenues Of C$250 Mln Increasingly Unlikely


Thursday, 14 Nov 2019 

Nov 14 (Reuters) - Canopy Growth Corp ::CANOPY GROWTH EXEC- MARKET OPPORTUNITY TODAY IS NOT LIVING UP TO EXPECTATIONS - CONF CALL.CANOPY GROWTH - PLEASED TO SEE RECENT ANNOUNCEMENT THAT ONTARIO HAS MADE A COMMITMENT TO MOVE TOWARDS AN OPEN ALLOCATION OF RETAIL LICENSES.CANOPY - UNLESS THERE IS AN ORDERLY STORE ROLLOUT THE SECTOR CANNOT REACH ITS FULL SALES POTENTIAL & CONVERT CONSUMERS FROM ILLICIT MARKET INTO LEGAL MARKET.CANOPY - ACHIEVING CO'S Q4 FISCAL 2020 NET REVENUES MILESTONE OF C$250 MILLION IS INCREASINGLY UNLIKELY.CANOPY - IS CONTINUING TO EXPLORE A VERY SHORT LIST OF CEO CANDIDATES AND EXPECTS TO MAKE A FURTHER ANNOUNCEMENT WITHIN THE COMING WEEKS.CANOPY - IN Q2, CONTINUED TO SEE A DISCONNECT BETWEEN INVENTORY LEVELS AND THE RATE OF SALE FOR CERTAIN PRODUCTS IN THE MARKET.CANOPY - RECREATIONAL OIL AND SOFTGEL PRICING ADJUSTMENTS OF C$10.3 MILLION ARE REQUIRED TO ESTABLISH CO'S NEW PRICING ARCHITECTURE`.CANOPY - TO DATE, HAVE TAKEN ACTUAL RETURNS OF C$20.5 MILLION FROM THE PROVINCES & EXPECT ANOTHER C$6.4 MILLION TO BE RETURNED FOR A TOTAL OF C$26.9 MILLION IN PRODUCT RETURNS.CANOPY - IDENTIFIED C$15.9 MILLION OF PRODUCTS THAT HAVE BEEN DUE TO EXCESS OR OBSOLETE AND THIS CHARGE HAS BEEN RECORDED IN COST OF SALES.CANOPY - FROM G&A EXPENSES, C$10.8 MILLION PERTAINS TO A LEGAL DISPUTE WITH A 3RD-PARTY HEMP FARMER IN THE U.S., FOR WHICH CO IS SEEKING REMEDY FOR BREACH OF CONTRACT.CANOPY - CAPITAL SPENDING WILL BE MUTED OVER THE NEXT 12 TO 18 MONTHS.