Executive Summary & Highlights Canopy Growth reported significant Q1 FY2025 profitability improvements and balance sheet strengthening, with management expressing confidence in future growth [Q1 FY2025 Financial Highlights](index=1&type=section&id=Q1%20FY2025%20Financial%20Highlights) Canopy Growth reported significant Q1 FY2025 profitability improvements, including a 67% gross profit increase and 77% Adjusted EBITDA loss reduction, while strengthening its balance sheet | Metric (CAD millions) | Q1 FY2025 | Q1 FY2024 | Change (%) | | :-------------------- | :-------- | :-------- | :--------- | | Gross profit | $23.0 | $13.8 | +67% | | Consolidated gross margin | 35% | 18% | +1,700 bps | | Operating loss from continuing operations | $(29.1) | $(54.7) | +47% (improvement) | | Consolidated Adjusted EBITDA loss | $(5.3) | $(23.0) | +77% (improvement) | | Net revenue | $66.2 | $76.3 | -13% | | SG&A expenses | $48.0 | $62.8 | -24% | | Free Cash Flow outflow | $(55.7) | $(108.2) | +49% (improvement) | - Cash and short-term investments balance was **$195 million** at June 30, 2024, compared to **$203 million** at March 31, 2024[1](index=1&type=chunk) - Term Loan Amendment offers significant deleveraging potential of up to **US$200 million**, with an option for an additional **US$100 million** paydown, potentially saving up to **US$28 million** in annual interest expenses[4](index=4&type=chunk) - The maturity date was extended by **9 months** to December 18, 2026, with an option for further extension to September 18, 2027[4](index=4&type=chunk) [CEO & CFO Commentary](index=1&type=section&id=CEO%20%26%20CFO%20Commentary) CEO highlighted strengthening business fundamentals and profitable revenue generation, while CFO emphasized improved margins and expected consolidated positive Adjusted EBITDA in H2 FY2025 - CEO David Klein stated, "The fundamentals of our business continue to strengthen, and our focus on profitable revenue generation is yielding clear results as we set the stage for growth in the second half of fiscal 2025"[1](index=1&type=chunk) - CFO Judy Hong noted significant improvements in **Gross Margins** and **Adjusted EBITDA**, along with reduced **SG&A expenses**, with all business units achieving positive Adjusted EBITDA in Q1 FY2025 and consolidated positive Adjusted EBITDA expected in H2 FY2025[1](index=1&type=chunk) Business Segment Performance The company's business segments showed mixed revenue performance, with Canada medical cannabis and Storz & Bickel growing, alongside strategic U.S. market expansion [Canada Cannabis](index=3&type=section&id=Canada%20Cannabis) Canada cannabis net revenue declined 6% due to lower adult-use sales, partially offset by a record 20% increase in medical cannabis revenue, with future growth anticipated | Metric (CAD millions) | Q1 FY2025 | Q1 FY2024 | Change (%) | | :-------------------- | :-------- | :-------- | :--------- | | Canada cannabis net revenue | $37.7 | $39.9 | -6% | | Canada medical cannabis net revenue | $18.8 | $15.6 | +20% | | Canadian adult-use cannabis net revenue | $18.9 | $24.3 | -22% | - Record quarter for Canada medical cannabis, driven by strong demand for Spectrum Therapeutics products and a broader assortment on the online platform[5](index=5&type=chunk) - Expected increase in Canada adult-use top line in coming quarters due to higher flower yields from Kincardine facility upgrades, increased pre-rolled production capacity, additional third-party suppliers, targeted wholesale pricing actions, and increased distribution[5](index=5&type=chunk) [International Markets Cannabis](index=4&type=section&id=International%20Markets%20Cannabis) International cannabis net revenue declined 1% with a 36% gross margin, driven by mixed regional performance and strong market share in Germany | Metric (CAD millions) | Q1 FY2025 | Q1 FY2024 | Change (%) | | :-------------------- | :-------- | :-------- | :--------- | | International markets cannabis net revenue | $10.1 | $10.2 | -1% | - International markets cannabis gross margin was **36%** in Q1 FY2025, up **200 bps** compared to Q1 FY2024[6](index=6&type=chunk) - Maintained top 4 market share in the Germany medical cannabis market, with prescriptions and volume increasing by over **20%** nationally post-legalization, and the Company is augmenting supply with EU-based sources[6](index=6&type=chunk) [Storz & Bickel](index=4&type=section&id=Storz%20%26%20Bickel) Storz & Bickel net revenue grew 2%, fueled by strong German sales and new products, with Australian regulatory changes creating new medical channel growth | Metric (CAD millions) | Q1 FY2025 | Q1 FY2024 | Change (%) | | :-------------------- | :-------- | :-------- | :--------- | | Storz & Bickel net revenue | $18.4 | $18.1 | +2% | - Strong growth in Germany, exceeding **100%**, contributed to revenue increase, along with sales of the Venty portable vaporizer (launched Q3 FY2024) and Mighty vaporizer[6](index=6&type=chunk) - Following regulatory changes in Australia's non-medical vaporizer channel, Storz & Bickel vaporizers are the only medically-certified whole flower vaporizers available for sale, expected to drive growth in the Australian medical channel[6](index=6&type=chunk) [Canopy USA](index=4&type=section&id=Canopy%20USA) Canopy USA expanded its U.S. cannabis presence by closing Jetty and Wana acquisitions, launching new products, and exercising the option to acquire Acreage Holdings - Canopy USA closed acquisitions of approximately **75%** of Jetty and two of three Wana entities (Wana Wellness, LLC and The CIMA Group, LLC), with the full acquisition of Wana expected by end of summer[7](index=7&type=chunk) - Wana Brands edibles launched in Connecticut and New York State, and the first three hemp-derived edibles were launched via partnership with Happi[7](index=7&type=chunk) - Jetty expanded its solventless vape product offering in California and launched high-THC infused pre-rolls in New York, maintaining its **1 share** of the national solventless vape market[7](index=7&type=chunk) - The option to acquire Acreage Holdings Inc. was exercised, with Canopy USA expecting to close its acquisition in the first half of calendar year 2025, and Acreage commenced non-medical cannabis sales in Ohio[7](index=7&type=chunk) Financial Review Canopy Growth's Q1 FY2025 financial review shows improved gross margin and reduced operating loss despite lower net revenue, with a strengthened balance sheet [Consolidated Statements of Operations](index=13&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 FY2025 saw a 13.1% net revenue decrease, yet gross margin improved 67.3% and operating loss narrowed 46.7%, though net loss significantly deteriorated | Metric (CAD thousands) | Q1 FY2025 | Q1 FY2024 | Change (%) | | :------------------------------------------------ | :-------- | :-------- | :--------- | | Revenue | 75,783 | 88,644 | -14.5% | | Excise taxes | 9,571 | 12,386 | -22.7% | | Net revenue | 66,212 | 76,258 | -13.1% | | Cost of goods sold | 43,181 | 62,496 | -30.9% | | Gross margin | 23,031 | 13,762 | +67.3% | | Operating loss from continuing operations | (29,108) | (54,652) | +46.7% (improvement) | | Other income (expense), net | (93,889) | 46,101 | Shift from income to expense | | Net loss from continuing operations | (129,191) | (10,569) | -1122% (deterioration) | | Net loss attributable to Canopy Growth Corporation | (127,138) | (38,121) | -233.5% (deterioration) | | Basic and diluted loss per share (continuing operations) | (1.63) | (0.19) | -757.9% (deterioration) | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets slightly decreased, total liabilities significantly reduced by 5.8% due to lower current debt, and shareholders' equity increased | Metric (CAD thousands) | June 30, 2024 | March 31, 2024 | Change (%) | | :--------------------- | :------------ | :------------- | :--------- | | Cash and cash equivalents | 192,156 | 170,300 | +12.8% | | Short-term investments | 2,766 | 33,161 | -91.7% | | Total current assets | 357,793 | 371,180 | -3.6% | | Total assets | 1,286,228 | 1,300,330 | -1.1% | | Current portion of long-term debt | 2,457 | 103,935 | -97.6% | | Total current liabilities | 166,599 | 234,715 | -29.0% | | Long-term debt | 558,489 | 493,294 | +13.2% | | Total liabilities | 753,305 | 799,823 | -5.8% | | Canopy Growth Corporation shareholders' equity | 532,923 | 500,507 | +6.5% | [Consolidated Statements of Cash Flows](index=14&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 FY2025 saw a 51.2% improvement in operating cash outflow, a shift to investing cash outflow, and a substantial financing cash inflow from share issuance and debt | Metric (CAD thousands) | Q1 FY2025 | Q1 FY2024 | Change | | :------------------------------------------------ | :-------- | :-------- | :----- | | Net cash used in operating activities - continuing operations | (51,780) | (106,219) | +51.2% (improvement) | | Net cash (used in) provided by investing activities - continuing operations | (43,186) | 142,385 | Shift from inflow to outflow | | Investment in other financial assets | (95,335) | (472) | -20100% | | Net cash provided by (used in) financing activities | 105,775 | (133,110) | Shift from outflow to inflow | | Proceeds from issuance of common shares and warrants | 53,854 | - | N/A | | Issuance of long-term debt and convertible debentures | 68,255 | - | N/A | | Net increase (decrease) in cash and cash equivalents | 21,856 | (143,741) | Shift from decrease to increase | | Cash and cash equivalents, end of period | 192,156 | 533,266 | -63.9% | Non-GAAP Measures Reconciliation This section reconciles key non-GAAP financial measures, highlighting significant improvements in adjusted gross margin, adjusted EBITDA, and free cash flow [Adjusted Gross Margin Reconciliation](index=15&type=section&id=Adjusted%20Gross%20Margin%20Reconciliation) Adjusted gross margin percentage significantly improved to 35% in Q1 FY2025 from 18% in Q1 FY2024, aligning with reported gross margin | Metric (CAD thousands) | Q1 FY2025 | Q1 FY2024 | Change | | :--------------------- | :-------- | :-------- | :----- | | Net revenue | 66,212 | 76,258 | -13.1% | | Gross margin, as reported | 23,031 | 13,762 | +67.3% | | Adjusted gross margin | 23,031 | 13,762 | +67.3% | | Adjusted gross margin percentage | 35% | 18% | +1700 bps | [Adjusted EBITDA Reconciliation](index=17&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA loss significantly narrowed by 77% to $(5.3) million in Q1 FY2025, reflecting effective cost reduction and improved gross profit | Metric (CAD thousands) | Q1 FY2025 | Q1 FY2024 | Change | | :--------------------- | :-------- | :-------- | :----- | | Net loss from continuing operations | (129,191) | (10,569) | -1122% | | Adjusted EBITDA | (5,280) | (22,986) | +77.0% (improvement) | [Free Cash Flow Reconciliation](index=18&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free cash flow outflow from continuing operations improved by 48.5% to $(55.7) million in Q1 FY2025, driven by reduced net cash used in operating activities | Metric (CAD thousands) | Q1 FY2025 | Q1 FY2024 | Change | | :------------------------------------------------ | :-------- | :-------- | :----- | | Net cash used in operating activities - continuing operations | (51,780) | (106,219) | +51.2% (improvement) | | Purchases of and deposits on property, plant and equipment - continuing operations | (3,920) | (1,946) | -101.4% | | Free cash flow - continuing operations | (55,700) | (108,165) | +48.5% (improvement) | [Segmented Gross Margin and Adjusted Gross Margin Reconciliation](index=19&type=section&id=Segmented%20Gross%20Margin%20and%20Adjusted%20Gross%20Margin%20Reconciliation) Canada cannabis gross margin significantly improved to 32%, international markets maintained 36%, and Storz & Bickel saw a slight decrease to 40% | Segment (CAD thousands) | Q1 FY2025 Net Revenue | Q1 FY2025 Gross Margin % | Q1 FY2024 Net Revenue | Q1 FY2024 Gross Margin % | | :---------------------- | :-------------------- | :----------------------- | :-------------------- | :----------------------- | | Canada cannabis | 37,678 | 32% | 39,893 | (1%) | | International markets cannabis | 10,082 | 36% | 10,162 | 34% | | Storz & Bickel | 18,452 | 40% | 18,073 | 43% | | This Works | - | 0% | 6,017 | 48% | | Other | - | 0% | 2,113 | (3%) | Company Information & Forward-Looking Statements This section provides webcast and contact details, an overview of Canopy Growth's business and U.S. strategy, and a comprehensive disclaimer regarding forward-looking statements and associated risks [Webcast and Contact Information](index=6&type=section&id=Webcast%20and%20Contact%20Information) This section provides details for the Q1 FY2025 conference call and audio webcast, including access links and contact information - A conference call and audio webcast with CEO David Klein and CFO Judy Hong was scheduled for August 9, 2024, at **10:00 AM Eastern Time**[10](index=10&type=chunk) - Live audio webcast available at: https://app.webinar.net/Lm5q6QW1Apv, with a replay accessible until November 7, 2024[10](index=10&type=chunk) - Contact information provided for Nik Schwenker (VP Communications) and Tyler Burns (Director, Investor Relations)[10](index=10&type=chunk) [About Canopy Growth](index=6&type=section&id=About%20Canopy%20Growth) Canopy Growth is a global cannabis leader focused on innovative products, premium brands, Storz & Bickel technology, and building a U.S. THC market ecosystem - Canopy Growth is a world-leading cannabis company dedicated to improving lives through innovative products and premium/mainstream cannabis brands including Doja, 7ACRES, Tweed, and Deep Space[10](index=10&type=chunk) - The company features category-defining vaporizer technology made in Germany by Storz & Bickel[10](index=10&type=chunk) - Canopy Growth has established Canopy USA to capitalize on U.S. THC market opportunities, holding unconsolidated, non-controlling interests in Jetty Extracts, Wana Brands, and Acreage Holdings[10](index=10&type=chunk)[11](index=11&type=chunk) [Notice Regarding Forward-Looking Statements](index=7&type=section&id=Notice%20Regarding%20Forward-Looking%20Statements) This disclaimer highlights that the press release contains forward-looking statements subject to inherent risks and uncertainties, cautioning against undue reliance - The press release contains "forward-looking statements" that predict or describe future operations, business plans, strategies, and investment performance, identified by terms such as "intend," "expect," "will," and "should"[12](index=12&type=chunk) - Readers are cautioned not to place undue reliance on these statements, as actual results or outcomes may differ materially due to inherent risks and uncertainties, many of which are beyond the company's control[12](index=12&type=chunk)[16](index=16&type=chunk)[18](index=18&type=chunk) - Key risks include, but are not limited to, changes in laws and regulations, impairment losses, debt refinancing, the impacts of the Canopy USA strategy, timing and outcome of acquisitions (e.g., Acreage, Wana), ability to maintain effective internal control, competitive conditions, and various operational and market-related factors[13](index=13&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk)[18](index=18&type=chunk)

Core Insights - Canopy Growth Corporation reported a 67% increase in gross profit year-over-year, achieving a gross profit of $23 million in Q1 FY2025 despite a decline in consolidated net revenue [3][4][5] - The company demonstrated significant improvements in financial metrics, including a 47% reduction in operating loss from continuing operations and a 77% improvement in consolidated Adjusted EBITDA loss [3][7][8] - The company is focused on profitable revenue generation and is well-positioned for growth in the U.S. cannabis market through its subsidiary, Canopy USA [4][12][19] Financial Performance - Consolidated net revenue decreased by 13% to $66.2 million in Q1 FY2025, primarily due to the impact of divested businesses [6][7] - The gross margin increased by 1,700 basis points to 35%, driven by improvements in the Canada cannabis segment and cost savings initiatives [7][8] - Operating loss from continuing operations was $29 million, a 47% improvement compared to Q1 FY2024, while Adjusted EBITDA loss narrowed to $5 million [3][6][7] Segment Performance - Canada cannabis segment net revenue was $38 million, a decrease of 6% year-over-year, with medical cannabis net revenue increasing by 20% [8][9] - International markets cannabis net revenue declined by 1%, with growth in Poland offset by a decline in Australia [9][10] - Storz & Bickel net revenue increased by 2%, driven by strong sales in Germany and the introduction of new products [10][11] Strategic Initiatives - The company extended the maturity of its senior secured term loan to December 18, 2026, with an option to extend further to September 18, 2027, enhancing financial flexibility [2][5][7] - Canopy USA is advancing its market position through acquisitions and product launches, including the introduction of Wana Brands edibles in Connecticut and New York [12][19] - The company is actively working to strengthen its balance sheet and reduce debt, with significant deleveraging actions planned [7][8][9]

Financial Reporting and Currency - The company's financial statements are reported in thousands of Canadian dollars, with the majority of operations conducted in Canadian dollars[98] - A hypothetical 10% change in the U.S. dollar against the Canadian dollar would affect the carrying value of net assets by approximately $75.5 million, while a 10% change in the euro would affect it by approximately $20.1 million[161] - The company's cash and cash equivalents, and short-term investments consisted of $75.5 million in interest rate sensitive instruments as of June 30, 2024[162] U.S. Market Expansion and Acquisitions - The company is focusing on accelerating entry into the U.S. cannabis market through the creation of Canopy USA, LLC, with expectations for growth in the U.S. cannabis sector[99] - Canopy USA was created to hold U.S. cannabis investments, with the company modifying its structure to comply with Nasdaq listing requirements, including deconsolidating Canopy USA's financial results[106] - Canopy USA completed the acquisition of Wana, a leading cannabis edibles brand in North America, and Jetty, a California-based producer of cannabis extracts, in 2024[107] - Canopy USA exercised the option to acquire approximately 70% of Acreage's shares, a leading vertically-integrated multi-state cannabis operator in the U.S., on June 4, 2024[107] - Canopy USA holds a 63.5% interest in TerrAscend, a major North American cannabis operator, through exchangeable shares, options, and warrants[108] - Canopy USA holds 60,955,929 common shares issued to Wana shareholders, representing a significant portion of Canopy USA's issued and outstanding shares[109] - Canopy USA issued 60,955,929 common shares and Canopy Growth issued 1,086,279 common shares to Wana shareholders as part of the Wana Amending Agreement[109] - Canopy USA's acquisition of Acreage involves issuing 0.045 of a Canopy Growth common share for each Floating Share held, with a total value of US$30.4 million in common shares issued to Holders[111] - Canopy Growth deconsolidated Canopy USA's financial results as of April 30, 2024, recognizing an equity method investment and a loan receivable at fair value[114] Financial Performance and Metrics - Net revenue for Q1 fiscal 2025 was $66.2 million, a decrease of $10.0 million (13%) compared to $76.3 million in Q1 fiscal 2024[118][120] - Gross margin percentage increased to 35% in Q1 fiscal 2025, up from 18% in Q1 fiscal 2024, representing a 1,700 basis points improvement[118][125] - Net loss from continuing operations was $129.2 million in Q1 fiscal 2025, compared to $10.6 million in Q1 fiscal 2024, a 1,122% increase[118] - Canadian adult-use cannabis revenue decreased by $5.4 million (22%) to $18.9 million in Q1 fiscal 2025, while medical cannabis revenue increased by $3.2 million (20%) to $18.8 million[119][121] - International markets cannabis revenue remained flat at $10.1 million in Q1 fiscal 2025, with growth in Europe offset by declines in Australia[122] - Storz & Bickel revenue increased by $0.4 million (2%) to $18.5 million in Q1 fiscal 2025, driven by strong growth of the Mighty vaporizer and new product launches[123] - This Works revenue was $nil in Q1 fiscal 2025 following the divestiture of the business on December 18, 2023[124] - Cost of goods sold decreased by $19.3 million (31%) to $43.2 million in Q1 fiscal 2025, contributing to the improved gross margin[125] - Canada cannabis segment gross margin increased to $12.1 million (32% of net revenue) in Q1 2025, compared to $(0.3) million (-1% of net revenue) in Q1 2024, driven by cost savings and strong medical cannabis sales[126][127] - International markets cannabis segment gross margin rose to $3.6 million (36% of net revenue) in Q1 2025, up from $3.5 million (34% of net revenue) in Q1 2024, due to higher-margin sales in Poland and lower operational costs[126][127] - Storz & Bickel segment gross margin decreased to $7.3 million (40% of net revenue) in Q1 2025, down from $7.7 million (43% of net revenue) in Q1 2024, primarily due to product mix changes and rebates for discontinued products[126][127] - This Works segment reported no gross margin in Q1 2025 following its divestiture on December 18, 2023, compared to $2.9 million (48% of net revenue) in Q1 2024[126][127] - Total operating expenses decreased by 24% to $52.1 million in Q1 2025, down from $68.4 million in Q1 2024, driven by cost savings and restructuring efforts[128] - General and administrative expenses decreased by 26% to $18.9 million in Q1 2025, compared to $25.5 million in Q1 2024, due to the divestiture of This Works and restructuring actions[128] - Sales and marketing expenses decreased by 27% to $15.2 million in Q1 2025, down from $20.8 million in Q1 2024, reflecting the impact of divestiture and cost-saving initiatives[128] - Share-based compensation expense increased by 12% to $4.2 million in Q1 2025, up from $3.7 million in Q1 2024, due to new grants of restricted share units and options[128][131] - Other income (expense), net, was an expense of $93.9 million in Q1 2025, compared to an income of $46.1 million in Q1 2024, primarily due to non-cash fair value changes in financial assets[132][133] - Loss on asset impairment and restructuring decreased to $0.02 million in Q1 2025, down from $1.9 million in Q1 2024, reflecting reduced restructuring costs and facility closures[131] - Decrease in income of $76.0 million related to non-cash fair value changes on equity method investments, driven by the fair value change of Canopy USA equity method investment[134] - Decrease in non-cash income of $33.5 million related to fair value changes on acquisition-related contingent consideration, primarily due to various acquisition-related contingent consideration[135] - Change of $27.4 million related to charges associated with the settlement of debt, including a gain of $22.1 million from the exchange of the CBI Note[136] - Decrease in interest income of $5.8 million, from $7.8 million to $2.1 million, due to lower cash and cash equivalents and short-term investment balances[136] - Decrease in interest expense of $11.0 million, from $32.2 million to $21.1 million, primarily due to the reduction of debt balances[137] - Income tax expense increased to $6.2 million in fiscal 2025 Q1, compared to $2.0 million in fiscal 2024 Q1, driven by deferred income tax expense[138] - Net loss from continuing operations increased to $129.2 million in fiscal 2025 Q1, compared to $10.6 million in fiscal 2024 Q1, primarily due to changes in other income (expense)[139] - Adjusted EBITDA loss decreased to $5.3 million in fiscal 2025 Q1, compared to $23.0 million in fiscal 2024 Q1, driven by increased gross margin and decreased selling, general, and administrative expenses[141] Cash Flow and Debt Management - Cash and cash equivalents stood at $192.2 million, with short-term investments of $2.8 million as of June 30, 2024[142] - Established an ATM Program allowing the sale of up to US$250 million of common shares, with $46.3 million in gross proceeds from selling 4,747,064 common shares in Q1 fiscal 2025[142] - Net cash used in operating activities decreased to $51.8 million in Q2 2024 from $148.7 million in Q2 2023, primarily due to reduced working capital spending and lower cash interest payments[143] - Cash used in investing activities totaled $33.0 million in Q2 2024, compared to cash provided of $142.6 million in Q2 2023, driven by strategic investments in Acreage's debt and reduced short-term investment redemptions[143] - Cash provided by financing activities was $105.8 million in Q2 2024, compared to cash used of $133.1 million in Q2 2023, mainly due to proceeds from share sales and warrant exercises[147] - Free cash flow improved to an outflow of $55.7 million in Q2 2024 from $108.2 million in Q2 2023, reflecting reduced operating cash outflows[148] - Total debt outstanding decreased to $560.9 million as of June 30, 2024, from $597.2 million as of March 31, 2024, due to debt settlements and repayments[149] - The company repurchased $11.2 million of Credit Facility principal in Q1 2025, reducing total principal to $584.5 million as of June 30, 2024[149] - Strategic investments in other financial assets totaled $95.3 million in Q2 2024, primarily for the acquisition of Acreage's debt[143] - Purchases of property, plant, and equipment were $3.9 million in Q2 2024, focused on Canadian cultivation and production facility improvements[143] - Net redemptions of short-term investments decreased to $30.0 million in Q2 2024 from $72.2 million in Q2 2023, with $2.8 million remaining as of June 30, 2024[143] - The Credit Facility maturity was extended to December 18, 2026, with a mandatory $97.5 million prepayment required by December 31, 2024[151] - Supreme Cannabis issued $100.0 million in 6.0% senior unsecured convertible debentures on October 19, 2018, later amended to cancel $63.5 million of principal, increase the interest rate to 8%, extend the maturity date to September 10, 2025, and reduce the conversion price to $2.85[152] - Supreme Cannabis issued new senior unsecured non-convertible debentures (Accretion Debentures) on September 9, 2020, with a principal amount starting at $nil and accreting at 11.06% annually, reaching a final principal amount of $10.4 million by September 9, 2023[152] - The May 2024 Convertible Debenture was issued with an aggregate principal amount of $96.4 million, bearing interest at 7.50% per annum, and is convertible into Canopy Shares at $14.38 per share[154] - The May 2024 Investor delivered approximately $27.5 million in Supreme Debentures and Accretion Debentures and paid approximately US$50 million in exchange for the May 2024 Convertible Debenture and 3,350,430 May 2024 Investor Warrants[154] - The company's financial liabilities consist of long-term fixed-rate debt of $103,691 and variable-rate debt of $480,797 as of June 30, 2024[164] Regulatory and Legal Considerations - The company is monitoring the legalization of cannabis for medical or adult-use in jurisdictions outside of Canada and intends to participate in such markets if legalized[100] - The company is assessing the ongoing impact of developing provincial, state, territorial, and municipal regulations on the sale and distribution of cannabis[100] - The company is considering the resolution of litigation and other legal and regulatory proceedings, reviews, and investigations[100] - The 2024 Federal Budget Proposals increase the capital gains inclusion rate from one-half to two-thirds for corporations, trusts, and individuals on gains exceeding $250,000[117] Operational and Production Capabilities - The company operates two major cannabis cultivation facilities in Kincardine, Ontario, and Kelowna, British Columbia, with the Kincardine facility holding EU GMP certification for exporting medical cannabis to Europe and other global markets[103] - The company's licensed operational capacity in Canada includes advanced manufacturing capabilities for oil, softgel encapsulation, pre-rolled joints, and hash production, primarily at the Smiths Falls, Ontario facility[103] - The company offers a 20% discount on medical cannabis prices for eligible low-income patients through its income-tested compassionate pricing program[103] - The company's European medical cannabis business operates under EU GMP compliance, supplying pharmaceutical-grade products to medical markets in Europe and Australia[103] - The company restructured its financial reporting into four segments: Canada cannabis, International markets cannabis, Storz & Bickel, and This Works, with the latter sold on December 18, 2023[105] - The company is focused on expanding production and manufacturing capabilities, with expectations for costs, timing, and receipt of necessary licenses[100] Goodwill and Impairment - The carrying value of goodwill associated with the Storz & Bickel reporting unit was $43,368 at June 30, 2024[158] - The company is required to perform its next annual goodwill impairment analysis on March 31, 2025, or earlier if an event occurs that would likely reduce the fair value of a reporting unit below its carrying amount[159] Off-Balance Sheet Arrangements - The company has no off-balance sheet arrangements that are reasonably likely to have a material effect on its financial condition[156]

. . Canadian Gold Corp. Makes New Gold Discovery Next to Agnico Eagle's Hammond Reef Deposit Samples 35.4 and 7.1 gpt Gold August 06, 2024 8:01 AM EDT | Source: Canadian Gold Corp. Toronto, Ontario--(Newsfile Corp. - August 6, 2024) - Canadian Gold Corp. (TSXV: CGC) ("Canadian Gold" or the "Company") is pleased to provide an exploration update on its 100% owned Hammond Reef South Project, located near Atikokan, Ontario, and adjacent to Agnico Eagle's fully permitted Hammond Reef Project (Fig. 1). Hammond Re ...

The market expects Canopy Growth Corporation (CGC) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 9, 2024, might help the stock move higher if these key n ...

Investors should tread very carefully with these stocks. Investors should be wary when it comes to cash-burning companies. These are businesses that aren't generating positive cash flow from their day-to-day operations. Not only does that mean their operations aren't sustainable, but it might mean their future survival depends on new sources of funding. That includes new share offerings, which dilute investors and send stock prices crashing. Three cash-burning stocks that are particularly concerning are Can ...

The latest trading session saw Canopy Growth Corporation (CGC) ending at $7.60, denoting no adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 1.08% for the day. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 2.64%. Heading into today, shares of the company had gained 21.41% over the past month, outpacing the Medical sector's gain of 0.71% and the S&P 500's loss of 0.44% in that time. The investment co ...

Marijuana stock investors are prepping for future trading. Many who are invested in cannabis are focused on the long term. With how volatile the sector can be there have been some moments to take profits. However, with the need for better regulations and all-around reform planning for the future is where many feel the money is. Currently, there is no federal reform in place even with the DEA's approval to reschedule cannabis. There is still much more to be done to help the sector reach better efficiency. Ye ...

Core Viewpoint - Canadian Gold Corp. has commenced its Phase 3 Drill Program at the Tartan Mine, aiming to expand the gold resource in the Hanging Wall Zone and Main Zone [1][2]. Group 1: Drill Program Details - The Phase 3 Drill Program is focused on testing the western extent of the Hanging Wall Zone (HWZ) and follows up on two significant intersections [2][4]. - The HWZ has shown promising results, with one hole returning 23.8 grams per tonne (gpt) gold over 12.6 metres, including 47.6 gpt gold over 5.8 metres, and another hole returning 20.6 gpt gold over 5.7 metres, including 30.4 gpt gold over 3.0 metres [3][4]. - In the Main Zone, the longest intercept in Tartan Mine's history was recorded at 4.2 gpt gold over 53.7 metres, including 12.0 gpt gold over 8.0 metres, indicating potential for resource expansion [4][5]. Group 2: Financial and Corporate Information - Proceeds from a recent private placement offering, announced on July 17, 2024, will be allocated to the Phase 3 Drill Program, with insiders participating in the offering [7]. - The Tartan Mine 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 [10].

Following the release of its first quarter fiscal year 2025 financial results, Canopy Growth will host an audio webcast with David Klein, CEO and Judy Hong, CFO on August 9, at 10 AM Eastern Time. A replay will be accessible by webcast until 11:59 PM ET on November 7, 2024 at: https://app.webinar.net/Lm5q6QW1Apv Canopy Growth has also established a comprehensive ecosystem to realize the opportunities presented by the U.S. THC market through an unconsolidated, non-controlling interest in Canopy USA, which ow ...