Smok­ing sec­ond quar­ter

Ottawa Sun - - NEWS - VITO PILIECI

Mar­i­juana pro­ducer Canopy Growth Corp. re­ported Tues­day that sales more than dou­bled in its fis­cal sec­ond quar­ter.

The com­pany, which is based in Smiths Falls and pro­duces mar­i­juana un­der a num­ber of brands, in­clud­ing Tweed, said sales for the three-month pe­riod be­tween July and Septem­ber hit $17.6 mil­lion, a 107% in­crease over the same pe­riod one year ear­lier when sales to­talled $8.5 mil­lion.

In the first six months of the com­pany’s fis­cal year, from April to Septem­ber, sales to­talled $33.4 mil­lion, more than dou­ble the $15.5 mil­lion it re­ported in sales dur­ing the same pe­riod last year.

How­ever, the boom­ing sales weren’t enough to push Canopy to prof­itabil­ity, as in­creased spend­ing to ex­pand the fledgeling firm and keep it ahead of emerg­ing com­peti­tors saw it post a net loss dur­ing the quar­ter of $1.6 mil­lion, or $0.01 per ba­sic and di­luted share. A year ear­lier, the com­pany posted net earn­ings of $5.4 mil­lion.

“We re­main fo­cused on the ex­pan­sion of our cul­ti­va­tion ca­pac­ity, ex­trac­tion plat­form and fin­ished branded prod­ucts pro­grams,” said Bruce Lin­ton, chair­man and chief ex­ec­u­tive of Canopy Growth.

“The his­toric cannabis sup­ply (mem­o­ran­dum of un­der­stand­ing) that we signed dur­ing the sec­ond quar­ter with the prov­ince of New Brunswick con­firmed our longheld be­lief that in­vest­ment in brands, qual­ity and scale cou­pled with in­vest­ing in the peo­ple and com­mu­ni­ties we be­lieve in across Canada would leave us well po­si­tioned to serve provin­cial sup­ply needs.”

The com­pany an­nounced it was adding 1.3 mil­lion square feet of green­house space in Bri­tish Columbia, with an op­tion for an ad­di­tional 1.7 mil­lion square feet, to ex­pand mar­i­juana pro­duc­tion. It also an­nounced that it has launched a strate­gic part­ner­ship in the Ja­maican cannabis mar­ket as part of an in­ter­na­tional ex­pan­sion.

Canopy Growth re­cently re­ceived a $245-mil­lion in­vest­ment from Con­stel­la­tion Brands, a bev­er­age maker best known for the Modelo and Corona beer brands and wine brands such as Ruffino and Robert Mon­davi, among oth­ers.

The in­vest­ment gives Con­stel­la­tion a 9.9 per cent own­er­ship in the Smiths Falls firm and opens the com­pany to po­ten­tial new col­lab­o­ra­tions that could see its mar­i­juana re­fined and used in Con­stel­la­tion brand bev­er­ages.

JUSTIN TANG

A man smokes a joint on Par­lia­ment Hill.

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