Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud or unlawful business practices involving Canopy Growth Corporation and its officers or directors [1] Financial Performance - On February 7, 2025, Canopy Growth Corporation reported its financial results for the third quarter of fiscal year 2025, showing year-over-year declines in both net revenue and gross margin, leading to a wider-than-expected net loss for the quarter [2] - Following the financial report, Canopy's stock price dropped by $0.76 per share, or 27.34%, closing at $2.02 per share on the same day [2]

Core Viewpoint - Canadian Gold Corp. has reported significant high-grade gold drill results from its ongoing Phase 4 drill program at the Tartan Mine, indicating strong continuity of mineralization and enhancing the deposit's viability for future mining operations [1][4]. Drilling Results - The Phase 4 drill program has successfully intersected high-grade mineralization, with 90% of the 29 holes drilled yielding potentially economic results within the Main Zone [1][4]. - Notable drill results include Hole TLMZ21-03W3, which returned 11.6 grams per tonne (gpt) gold over 5.1 metres, and Hole TLMZ21-03W2, which returned 7.1 gpt gold over 6.0 metres [5][6]. Mineral Resource Estimate - The ongoing drilling will contribute to an updated mineral resource estimate, with over 23,000 metres drilled since the last estimate in 2017, expanding the vertical extent of gold mineralization by approximately 79%, from 575 metres to 1,030 metres below surface [3][10]. Future Exploration Potential - There remains significant potential for further expansion of high-grade mineralization along both the western and eastern flanks of the Main Zone, with additional drilling planned to maximize gold ounces before the updated resource estimate and mine economics study [5][6]. Company Overview - Canadian Gold Corp. is focused on expanding the high-grade gold resource at the Tartan Mine, which has a 2017 indicated mineral resource estimate of 240,000 ounces of gold at a grade of 6.32 gpt [10]. The company also holds exploration properties in Ontario and Quebec adjacent to major gold mines [10].

Core Viewpoint - Canadian Gold Corp. is experiencing positive results from ongoing exploration at the Tartan Mine Gold Project, indicating significant resource expansion and a deeper understanding of the geological potential of the site [1][2]. Exploration Results - The Phase 4 drill program has successfully targeted a large undrilled area of the Main Zone and has continued to build gold ounces along the western flank, with assays pending for deeper portions that show promise [2]. - The company has completed over 23,000 metres of drilling since the last resource estimate in 2017, expanding the vertical extent of gold mineralization by approximately 79%, from 575 metres to 1,030 metres below surface [4]. Drill Highlights - Drill hole TLMZ21-11W1 intersected a high-grade area, returning 19.4 grams per tonne (gpt) gold over 4.5 metres within a wider interval of 7.4 gpt gold over 13.5 metres, targeting a gap in the Main Zone [4][5]. - Drill hole TLMZ21-04W3 returned 8.0 gpt gold over 5.2 metres, including 12.5 gpt gold over 2.55 metres, expanding the width of the Main Zone by approximately 90% over a 50-metre stretch [4][5]. Future Plans - Additional drilling is planned to further explore the western limits of the Main Zone and to conduct deeper tests of the South Zone, aimed at maximizing potential gold ounces before updating the mineral resource estimate and mine economics study [4][2]. Company Background - Canadian Gold Corp. is focused on expanding the high-grade gold resource at the Tartan Mine, which has a 2017 indicated mineral resource estimate of 240,000 ounces of gold at 6.32 g/t and an inferred estimate of 37,000 ounces at 4.89 g/t [9]. - The company also holds exploration properties in Ontario and Quebec, adjacent to major gold mines and development projects [10].

Financial Data and Key Metrics Changes - Canopy Growth reported consolidated net revenue of CAD75 million in Q3, a decrease of 5% year-over-year, but an increase of 8% when excluding divested businesses [29] - Consolidated gross margin in Q3 was 32%, down from 36% a year ago, but within the target range [29] - Adjusted EBITDA loss was CAD3 million, an improvement of 61% compared to the previous year [30] - Free cash flow outflow was CAD28 million, improving by 17% compared to Q3 of fiscal '24 [40] Business Line Data and Key Metrics Changes - Canadian medical cannabis revenue was CAD41 million, up 1% year-over-year, with a 16% increase in medical revenue [31] - Adult use business revenue decreased by 10% year-over-year but increased by 15% quarter-over-quarter, driven by new product launches [32] - International cannabis net revenue was CAD12 million, up 14% year-over-year, with significant growth in Poland and Germany [34] Market Data and Key Metrics Changes - European business, particularly in Poland and Germany, saw over 70% growth, while the Australian market faced increased competition [52][54] - International markets' cannabis gross margin was 41%, up 100 basis points from the previous year, driven by higher sales in Poland [37] Company Strategy and Development Direction - The company aims to drive towards sustained profitability and positive cash generation, focusing on key areas of improvement [15][16] - Canopy is enhancing its medical cannabis business and expanding its adult use market share through innovative product launches and improved distribution strategies [20][45] - Canopy USA is positioned to capitalize on its ecosystem of brands and operations, with a focus on integration and cost synergies [23][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges in the cannabis sector, including regulatory hurdles and competition, but remains optimistic about growth opportunities [14][15] - The focus is on improving cash flow and profitability, with expectations for positive adjusted EBITDA in the coming quarters [47] Other Important Information - The company has CAD178 million in cash and short-term investments and a total principal debt balance of CAD460 million [42] - Canopy is leveraging its GMP-certified facility in Canada to support international market growth [56] Q&A Session Summary Question: Plans for international growth and asset-light model - Management highlighted strong performance in European markets, particularly Poland and Germany, and emphasized the benefits of an asset-light model for capturing market share [50][52] Question: Management and strategy philosophy changes - The new CEO expressed early impressions of the company's talent and processes, indicating a thorough analysis of current strategies [59][60] Question: Free cash flow and ATM program - Management noted significant progress in cash flow improvement and plans for continued focus on reducing leverage while reinvesting in growth opportunities [63][67] Question: Insights on the Polish market - The Polish market is experiencing strong demand exceeding supply, with the company holding a leadership position due to consistent quality and supply [70][71] Question: Involvement of Constellation Brands - Constellation Brands remains a passive shareholder, with a focus on investment rather than operational involvement [80]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Canopy Growth Corporation (CGC) came out with a quarterly loss of $0.76 per share versus the Zacks Consensus Estimate of a loss of $0.48. This compares to loss of $1.79 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -58.33%. A quarter ago, it was expected that this company would post a loss of $0.38 per share when it actually produced a loss of $0.95, delivering a surprise of -150%.Over the last four quarters, the company has ...

[Q3 FY2025 Financial and Operational Overview](index=1&type=section&id=Canopy%20Growth%20Reports%20Third%20Quarter%20Fiscal%20Year%202025%20Financial%20Results) This section provides a comprehensive summary of Canopy Growth's financial performance and key operational achievements for Q3 FY2025 [Financial Highlights](index=1&type=section&id=Third%20Quarter%20Fiscal%20Year%202025%20Financial%20Summary) Canopy Growth reported a 5% net revenue decrease to $74.8 million, while significantly improving operating and Adjusted EBITDA losses by 61% | (in thousands of Canadian dollars) | Q3 FY2025 | vs. Q3 FY2024 | | :--- | :--- | :--- | | **Net Revenue** | $74,761 | (5%) | | **Gross margin percentage** | 32% | (400) bps | | **Net loss from continuing operations** | $(121,896) | 47% improvement | | **Adjusted EBITDA** | $(3,469) | 61% improvement | | **Free cash flow** | $(28,181) | 17% improvement | - **Revenue Growth (Core Business):** Excluding divested businesses, net revenue increased by **8% YoY**, driven by growth in Canada medical, international markets, and Storz & Bickel[6](index=6&type=chunk) - **Gross Margin Pressure:** Gross margin declined by **400 bps to 32%**, primarily due to costs associated with the Claybourne pre-roll launch and higher indirect costs for Storz & Bickel devices[6](index=6&type=chunk) - **Improved Profitability:** Operating loss improved by **61% YoY**, and Adjusted EBITDA loss improved by **61% YoY**, reflecting the success of the company's cost savings program[6](index=6&type=chunk) - **Debt Reduction:** Total debt was reduced from **$554 million to $442 million** during the quarter due to an early prepayment on a senior secured term loan[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Luc Mongeau emphasized sustainable profitability and value creation, while CFO Judy Hong highlighted record Adjusted EBITDA and strengthened financial position - **CEO Focus:** The new CEO is focused on achieving sustainable profitability and creating value in key markets[3](index=3&type=chunk) - **CFO Perspective:** The CFO highlighted the best Adjusted EBITDA to date, driven by revenue growth and cost discipline, which strengthens the company's financial position for future investments[3](index=3&type=chunk) [Business Highlights](index=2&type=section&id=Business%20Highlights) This section details key operational achievements and market performance across Canopy Growth's various business segments [Canada Cannabis Highlights](index=2&type=section&id=Canada%20Cannabis%20Highlights) Canada cannabis net revenue grew 1% to $41 million, driven by medical segment growth and successful Claybourne pre-roll launch - **Canada Medical Growth:** Net revenue from Canada medical cannabis increased **16% YoY**, driven by larger average customer orders[9](index=9&type=chunk) - **Canada Adult-Use Decline:** Net revenue from Canada adult-use cannabis declined **10% YoY**, though it increased **15% sequentially** from Q2 FY2025[9](index=9&type=chunk) - **Successful Product Launch:** The newly launched Claybourne brand achieved **3 market share** in the infused pre-roll category in British Columbia and Ontario within six weeks[2](index=2&type=chunk)[9](index=9&type=chunk) [International Markets Highlights](index=2&type=section&id=International%20Markets%20Highlights) International markets revenue increased 14% to $12 million, led by Poland and Germany, with gross margins improving to 41% - **Revenue Growth:** International markets net revenue grew **14% YoY**, led by strong performance in Poland and Germany[9](index=9&type=chunk) - **Margin Expansion:** Gross margins for international cannabis increased by **100 bps to 41%** compared to Q3 FY2024, primarily due to a sales mix shift to higher-margin Poland[9](index=9&type=chunk) [Storz & Bickel Highlights](index=2&type=section&id=Storz%20%26%20Bickel%20Highlights) Storz & Bickel vaporizer segment revenue grew 19% to $22 million, driven by strong holiday sales and direct-to-consumer performance - **Strong Revenue Growth:** Storz & Bickel net revenue increased **19% YoY to $22 million**, driven by holiday sales, direct-to-consumer channels, and growth in Germany[2](index=2&type=chunk)[9](index=9&type=chunk) [Canopy USA Highlights](index=2&type=section&id=Canopy%20USA%20Highlights) Canopy USA completed the Acreage Holdings acquisition, integrating U.S. assets for synergies, and appointed Brooks Jorgensen as new President - **Acreage Acquisition Completed:** Canopy USA completed its acquisition of Acreage Holdings, Inc. on **December 9, 2024**[9](index=9&type=chunk) - **Integration and Synergies:** The company is proceeding with the full integration of its U.S. assets (Acreage, Wana, Jetty) to generate cost savings[9](index=9&type=chunk) - **New Leadership:** Brooks Jorgensen was appointed President of Canopy USA in **January 2025**[9](index=9&type=chunk) [Detailed Financial Review](index=3&type=section&id=Detailed%20Financial%20Review) This section offers an in-depth analysis of Canopy Growth's revenue and gross margin performance by segment [Revenue by Segment](index=3&type=section&id=Third%20Quarter%20Fiscal%202025%20Revenue%20Review) Total net revenue decreased 5% to $74.8 million due to divestitures, with Storz & Bickel and International markets leading growth in continuing operations | (in millions of Canadian dollars) | Q3 FY2025 | Q3 FY2024 | Vs. Q3 FY2024 | | :--- | :--- | :--- | :--- | | **Canada adult-use cannabis** | $21.2 | $23.5 | (10%) | | **Canada medical cannabis** | $19.6 | $16.9 | 16% | | **Total Canada cannabis** | **$40.8** | **$40.4** | **1%** | | **International markets cannabis** | $12.0 | $10.5 | 14% | | **Storz & Bickel** | $22.0 | $18.5 | 19% | | **This Works** | $- | $8.2 | (100%) | | **Other** | $- | $0.9 | (100%) | | **Total Net revenue** | **$74.8** | **$78.5** | **(5%)** | [Segmented Gross Margin](index=14&type=section&id=Segmented%20Gross%20Margin%20Reconciliation) International markets and Storz & Bickel segments reported 41% gross margins, though Storz & Bickel's margin decreased from the prior year | Segment | Q3 FY2025 Gross Margin % | Q3 FY2024 Gross Margin % | | :--- | :--- | :--- | | **Canada cannabis** | 25% | 28% | | **International markets cannabis** | 41% | 40% | | **Storz & Bickel** | 41% | 51% | [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated balance sheets, statements of operations, and cash flows for the reporting period [Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Interim%20Consolidated%20Balance%20Sheets) As of December 31, 2024, total assets were $1.16 billion, total liabilities $572.7 million, with a significant reduction in long-term debt | (in thousands of CAD) | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $341,085 | $371,180 | | **Total assets** | $1,164,219 | $1,300,330 | | **Total current liabilities** | $97,016 | $234,715 | | **Total liabilities** | $572,744 | $799,823 | | **Total shareholders' equity** | $591,475 | $500,507 | [Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Operations) Q3 FY2025 saw net revenue of $74.8 million, with operating loss improving to $23.8 million and net loss to $121.9 million | (in thousands of CAD, except per share) | Three months ended Dec 31, 2024 | Three months ended Dec 31, 2023 | | :--- | :--- | :--- | | **Net revenue** | $74,761 | $78,505 | | **Gross margin** | $24,098 | $28,226 | | **Operating loss from continuing operations** | $(23,822) | $(60,316) | | **Net loss from continuing operations** | $(121,896) | $(230,276) | | **Basic and diluted loss per share (Continuing)** | $(1.11) | $(2.78) | [Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $132.6 million for the nine months, with $161.9 million in cash and cash equivalents | (in thousands of CAD) | Nine months ended Dec 31, 2024 | Nine months ended Dec 31, 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(132,598) | $(259,891) | | **Net cash (used in) provided by investing activities** | $(46,787) | $202,106 | | **Net cash provided by (used in) financing activities** | $164,618 | $(473,524) | | **Cash and cash equivalents, end of period** | $161,909 | $142,745 | [Non-GAAP Financial Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section explains and reconciles non-GAAP financial measures used to provide additional insights into the company's performance [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company uses non-GAAP measures like Adjusted EBITDA and Free Cash Flow to provide additional insight into operating performance and liquidity - **Adjusted EBITDA:** Calculated from net loss, excluding taxes, other income/expense, share-based compensation, depreciation & amortization, and restructuring costs to show operating performance[14](index=14&type=chunk) - **Free Cash Flow:** Calculated as net cash from operating activities less capital expenditures, representing cash available to maintain and expand the business[15](index=15&type=chunk) - **Adjusted Gross Margin:** Calculated by excluding restructuring charges and other specific items from the cost of goods sold to provide a clearer view of gross margin performance[16](index=16&type=chunk) [Adjusted EBITDA Reconciliation](index=12&type=section&id=Adjusted%20EBITDA%20Reconciliation%20(Non-GAAP%20Measure)) Adjusted EBITDA loss improved 61% to $3.5 million, reconciled from net loss by adding back non-cash and non-operating items | (in thousands of CAD) | Three months ended Dec 31, 2024 | Three months ended Dec 31, 2023 | | :--- | :--- | :--- | | **Net loss from continuing operations** | $(121,896) | $(230,276) | | Other (income) expense, net | $97,758 | $171,037 | | Share-based compensation | $5,159 | $3,693 | | Depreciation and amortization | $10,314 | $12,240 | | Loss on asset impairment and restructuring | $1,285 | $30,413 | | Other adjustments | $3,911 | $3,904 | | **Adjusted EBITDA** | **$(3,469)** | **$(8,989)** | [Free Cash Flow Reconciliation](index=13&type=section&id=Free%20Cash%20Flow%20Reconciliation%20(Non-GAAP%20Measure)) Free cash flow outflow improved 17% to $28.2 million, calculated from operating activities and capital expenditures | (in thousands of CAD) | Three months ended Dec 31, 2024 | Three months ended Dec 31, 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities - continuing** | $(26,966) | $(33,348) | | Purchases of and deposits on property, plant and equipment | $(1,215) | $(564) | | **Free cash flow - continuing operations** | **$(28,181)** | **$(33,912)** | [Forward-Looking Statements](index=4&type=section&id=Notice%20Regarding%20Forward%20Looking%20Statements) This section outlines the inherent risks and uncertainties associated with the company's forward-looking statements and future prospects [Risks and Uncertainties](index=4&type=section&id=Risks%20and%20Uncertainties) Forward-looking statements are subject to risks including regulatory changes, debt refinancing, Canopy USA integration, and going concern ability - The company cautions investors that actual results may differ materially from projections due to various factors[23](index=23&type=chunk) - Key areas of uncertainty include[24](index=24&type=chunk)[28](index=28&type=chunk)[31](index=31&type=chunk) - Changes in laws and regulations, particularly in the U.S. cannabis market[24](index=24&type=chunk)[28](index=28&type=chunk)[31](index=31&type=chunk) - The impact and integration of the Canopy USA strategy[24](index=24&type=chunk)[28](index=28&type=chunk)[31](index=31&type=chunk) - The ability to refinance debt and comply with covenants[24](index=24&type=chunk)[28](index=28&type=chunk)[31](index=31&type=chunk) - The potential for future asset impairment losses[24](index=24&type=chunk)[28](index=28&type=chunk)[31](index=31&type=chunk) - The company's ability to continue as a going concern[24](index=24&type=chunk)[28](index=28&type=chunk)[31](index=31&type=chunk)

Strong holiday sales drove Storz & Bickel net revenue growth of 19% year-over-year   Record quarter for Canada medical cannabis with net revenue increasing 16%; international markets cannabis net revenue grew 14% year-over-year    Successfully launched Claybourne infused pre-rolls across Canada, Claybourne rose to #3 market share in the infused pre-roll category in British Columbia and Ontario after 6 weeks in market1SMITHS FALLS, ON, Feb. 7, 2025 /PRNewswire/ - Canopy Growth Corporation ("Canopy Growth" or ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed interim consolidated financial statements for the period ended December 31, 2024, reflect decreased assets, a net loss, and the alleviation of going concern doubts through strategic financial actions [Condensed Interim Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Balance%20Sheets) As of December 31, 2024, total assets decreased to $1.16 billion, total liabilities significantly reduced to $572.7 million, and shareholders' equity increased to $591.5 million Consolidated Balance Sheet Highlights (in thousands of CAD) | Balance Sheet Item | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $161,909 | $170,300 | | Total current assets | $341,085 | $371,180 | | Total assets | $1,164,219 | $1,300,330 | | **Liabilities & Equity** | | | | Total current liabilities | $97,016 | $234,715 | | Long-term debt | $438,404 | $493,294 | | Total liabilities | $572,744 | $799,823 | | Total shareholders' equity | $591,475 | $500,507 | [Condensed Interim Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For Q3 2024, net revenue decreased 5% to $74.8 million, while net loss from continuing operations improved to $121.9 million, reflecting a similar trend for the nine-month period Q3 & Nine-Month Performance (in thousands of CAD, except per share data) | Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net revenue | $74,761 | $78,505 | $203,964 | $224,358 | | Gross margin | $24,098 | $28,226 | $68,967 | $65,414 | | Operating loss from continuing operations | $(23,822) | $(60,316) | $(98,873) | $(121,975) | | Net loss from continuing operations | $(121,896) | $(230,276) | $(382,637) | $(389,007) | | Basic and diluted loss per share (Continuing ops) | $(1.11) | $(2.78) | $(4.15) | $(5.56) | [Condensed Interim Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended December 31, 2024, net cash used in operating activities improved to $132.6 million, while financing activities provided $164.6 million, leading to a net decrease in cash Cash Flow Summary (Nine months ended Dec 31, in thousands of CAD) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(132,598) | $(259,891) | | Net cash (used in) provided by investing activities | $(46,787) | $202,106 | | Net cash provided by (used in) financing activities | $164,618 | $(473,524) | | **Net decrease in cash and cash equivalents** | **$(8,391)** | **$(534,262)** | [Notes to the Condensed Interim Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Statements) The notes detail accounting policies and significant events, including the alleviation of going concern doubts, deconsolidation of Canopy USA and BioSteel, and debt restructuring - Management concluded that substantial doubt about the Company's ability to continue as a going concern has been alleviated through balance sheet actions, cost-savings, and additional financing, including the ATM Program[31](index=31&type=chunk)[33](index=33&type=chunk) - Canopy Growth deconsolidated Canopy USA's financial results on April 30, 2024, to comply with Nasdaq listing rules, derecognizing **$384.7 million** in net assets and recognizing an equity method investment and loan receivable[54](index=54&type=chunk)[58](index=58&type=chunk)[72](index=72&type=chunk) - The BioSteel business unit was placed under CCAA proceedings and deconsolidated effective September 14, 2023, with its results now classified as discontinued operations[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - The company established an at-the-market (ATM) equity program in June 2024, selling **39.5 million** common shares for gross proceeds of **$256.0 million** during the nine months ended December 31, 2024[141](index=141&type=chunk)[142](index=142&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 FY2025 performance, noting a 5% net revenue decrease, reduced operating expenses, improved gross margin, and successful alleviation of going concern risk through strategic financial actions [Results of Operations](index=66&type=section&id=Results%20of%20Operations) Q3 FY2025 net revenue decreased 5% to $74.8 million, driven by divestitures, while operating expenses dropped 46% and Adjusted EBITDA loss improved to $3.5 million Q3 FY2025 Net Revenue by Segment (in thousands of CAD) | Segment | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | Canadian adult-use cannabis | $21,153 | $23,490 | (10%) | | Canadian medical cannabis | $19,575 | $16,894 | 16% | | International markets cannabis | $12,024 | $10,527 | 14% | | Storz & Bickel | $22,009 | $18,453 | 19% | | This Works | $- | $8,165 | (100%) | | **Total Net Revenue** | **$74,761** | **$78,505** | **(5%)** | - Operating expenses for Q3 FY2025 decreased by **46%** to **$47.9 million** from **$88.5 million** in Q3 FY2024, driven by a **96%** reduction in asset impairment and restructuring losses and a **24%** decrease in SG&A[264](index=264&type=chunk) Adjusted EBITDA (Non-GAAP) Reconciliation (Q3, in thousands of CAD) | Line Item | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net loss from continuing operations | $(121,896) | $(230,276) | | Adjustments | $118,427 | $221,287 | | **Adjusted EBITDA** | **$(3,469)** | **$(8,989)** | [Financial Liquidity and Capital Resources](index=84&type=section&id=Financial%20Liquidity%20and%20Capital%20Resources) The company alleviated going concern doubts, reduced total debt to $441.6 million, and raised $256.0 million through its ATM program, improving free cash flow to a $140.3 million outflow - Management concluded that substantial doubt about the company's ability to continue as a going concern has been alleviated through balance sheet actions, including debt reduction and equity financing[314](index=314&type=chunk)[316](index=316&type=chunk) - Total debt was reduced by **$155.6 million**, from **$597.2 million** on March 31, 2024, to **$441.6 million** on December 31, 2024[333](index=333&type=chunk) - The company raised **$256.0 million** in gross proceeds from its ATM program and received **$68.3 million** from a convertible debenture exchange and subscription agreement in the nine months ended December 31, 2024[314](index=314&type=chunk)[317](index=317&type=chunk)[328](index=328&type=chunk) Free Cash Flow (Non-GAAP, in thousands of CAD) | Period | 9 Months 2024 | 9 Months 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(132,598) | $(205,961) | | Purchases of PP&E | $(7,724) | $(3,200) | | **Free cash flow** | **$(140,322)** | **$(209,161)** | [Quantitative and Qualitative Disclosures About Market Risk](index=94&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency exchange rates, interest rates, and equity prices, with hypothetical 10% USD and EUR changes impacting net assets by $9.4 million and $20.5 million respectively - A hypothetical **10%** change in the U.S. dollar against the Canadian dollar would affect net assets by approximately **$9.4 million**[358](index=358&type=chunk) - A hypothetical **10%** change in the euro against the Canadian dollar would affect net assets by approximately **$20.5 million**[358](index=358&type=chunk) - The company is exposed to equity price risk through its holdings of shares, warrants, options, and other financial assets and liabilities measured at fair value[365](index=365&type=chunk) [Controls and Procedures](index=97&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of December 31, 2024, the company's disclosure controls and procedures are effective[369](index=369&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[370](index=370&type=chunk) [PART II. OTHER INFORMATION](index=98&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=98&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ongoing legal proceedings, including dismissed U.S. class actions, ongoing Canadian class actions, and an SEC investigation related to BioSteel - A U.S. securities class action related to BioSteel was dismissed with prejudice, and the subsequent appeal was voluntarily dismissed and closed as of October 9, 2024[375](index=375&type=chunk) - Putative class action lawsuits are ongoing in Ontario and British Columbia alleging misrepresentations in public disclosures[377](index=377&type=chunk)[379](index=379&type=chunk) - The company is subject to an ongoing SEC investigation following its self-reporting of an internal review of BioSteel Canada's financial reporting matters[381](index=381&type=chunk) [Risk Factors](index=100&type=section&id=Item%201A.%20Risk%20Factors) A material risk factor concerns Acreage Holdings, Inc.'s going concern doubts, which could negatively impact Canopy USA's operations and Canopy Growth's US$106 million debt investment - Acreage Holdings, Inc.'s financial statements express substantial doubt about its ability to continue as a going concern, posing a significant risk to Canopy USA's business and Canopy Growth's U.S. strategy[385](index=385&type=chunk) - Canopy Growth holds approximately **US$106 million** of Acreage's debt, subordinate to **US$65 million** owed to another lender, risking total loss if Acreage fails[387](index=387&type=chunk)[388](index=388&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=102&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the period - No unregistered sales of equity securities occurred[390](index=390&type=chunk) [Defaults Upon Senior Securities](index=102&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the period - No defaults upon senior securities occurred[391](index=391&type=chunk) [Other Information](index=102&type=section&id=Item%205.%20Other%20Information) No director or officer reported adopting or terminating a Rule 10b5-1 trading arrangement during the third quarter of fiscal 2025 - No director or officer reported adopting or terminating a Rule 10b5-1 trading arrangement during the quarter[393](index=393&type=chunk) [Exhibits](index=102&type=section&id=Item%206.%20Exhibits) The report includes various exhibits filed with the SEC, such as corporate governance documents, CEO employment agreement, and required certifications - Exhibits filed include corporate governance documents, an employment agreement for CEO Luc Mongeau, and required CEO/CFO certifications[394](index=394&type=chunk)

Group 1 - The article discusses the potential for investors to identify undervalued stocks that are mispriced by the market as February approaches [1][2] - It highlights the services offered by the investing group Out Fox The Street, which includes stock picks, model portfolios, daily updates, and community engagement [2] - The article emphasizes the importance of conducting personal research or consulting a financial advisor before making investment decisions [3] Group 2 - The content serves as a reminder that past performance does not guarantee future results, and no specific investment recommendations are provided [4] - It clarifies that the analysts involved may not be licensed or certified, indicating a diverse range of authors contributing to the insights [4]