GATINEAU, Que. — Marijuana company Hexo Corp. reported a loss of $4.3 million in its latest quarter as revenue grew to $16.2 million in its first full quarter following the legalization of recreational cannabis in Canada.
The company says the loss amounted to two cents per share for the quarter ended Jan. 31.
The result compared with a loss of nearly $9 million or 10 cents per share in the same quarter a year earlier when the company reported $1.2 million in revenue.
The company’s loss from operations in what was its second quarter increased to $6.9 million compared with a loss of $4.7 million a year earlier due to higher expenses as it prepared for the legalization of the adult-use market and stock-based compensation expenses.
The results came a day after Hexo announced a deal to buy Newstrike Brands Ltd., the cannabis company backed by members of the Tragically Hip band, in a all-share transaction valued at $263 million.
Newstrike shareholders are being offered 0.06332 of a Hexo common share in exchange for each common share held
Companies in this story: (TSX:HEXO)
The Canadian Press