Article by BNN Bloomberg
Economic activity in Canada’s legal pot industry tripled since legalization: StatsCan
Canada’s cannabis industry generates about $8.16 billion to the country’s economy, according to latest data from Statistics Canada. The legal cannabis industry contributed about $3.96 billion to Canada’s gross domestic product as of February, StatsCan said. That’s up 215 per cent since recreational cannabis was legalized in Oct. 2018. Meanwhile, StatsCan said the illicit market is estimated to contribute $4.13 billion to the country’s economy. That’s down about 21 per cent since Oct. 2018.
Fire & Flower books Q4 loss of $22.2M through impairment, restructuring charges
Canadian cannabis retailer Fire & Flower shares closed down about 5 per cent on Thursday after the company released its fourth quarter results. The retailer said its Q4 revenue was $16.8 million, up 61 per cent from the same period a year earlier, while booking a net loss of $22.2 million. Fire & Flower also reported an impairment charge of $4.6 million in its pre-market release, while also taking a $6.5 million restructuring charge in the quarter. The company reduced its store count forecast to 78 by the end of the year, down from 85, and said it would shut three stores in Alberta due to concentrated market conditions.
Flowr shares slide after reporting $27M Q4 loss
Shares of Toronto-based cannabis producer Flowr tumbled on the TSX Venture on Thursday following the company’s fourth-quarter results, announced late Wednesday. Flowr reported a Q4 loss of $27 million, while net revenue came in at a scant $51,000, which the company attributed to lower cannabis prices and customer product returns. Flowr also booked a $5.3 million impairment charge, while noting separately that it is focused on selling more Pink Kush in Canada, which has higher THC and strong customer demand. The company reiterated its plans to be cash-flow-positive in the second half of the year.
Auxly notches just $2M in Cannabis 2.0 sales amid sizable full-year loss
Cannabis producer Auxly Cannabis Group reported a sizable $102-million net loss in its full year results on Thursday, which the company largely attributed to two separate asset impairment charges totalling $35 million. Auxly reported full-year revenue of $8.3 million, which mainly came from research revenues from its clinical trial services subsidiary. About $2 million in sales came from Cannabis 2.0 products sold in the last two weeks of 2019.