The next two earnings reports will likely be horrible for everyone. The two after that tho…
— Dan Sutton (@DSutton1986) March 28, 2020
Last week, the Green Organic Dutchman joined several other large LPs in announcing layoffs and closure plans. In TGOD’s case, they will freeze a “largely completed” 1.3M square feet greenhouse in Valleyfield, Quebec, and lay off 30 employees from a total staff of 260.
MJ Biz Daily
- The company spent $229M building the paused greenhouse facility, initially intended to produce 185,000 kg of product annurally, a number TGOD dramatically downgraded to 10,000 kg. Representatives said reaching the 185,000 kg target would require another $110M in investment.
BNN Bloomberg - Jeffries analyst Owen Bennett called the refusal to get the facility running “a gross misallocation of capital.”
This week, Hexo finally posted its delayed Q2 earnings, including a $298.2M net loss, nearly quintupling the $62.4M net loss the company reported last quarter.
Globe Newswire, Twitter–@MJBizDailyCAN
- The company reported an impairment loss of $138.3M on the Niagara Falls production facility it acquired along with Newstrike Cannabis last May, plus an additional $111.9M goodwill writedown on reevaluated assets.
MJ Biz Daily - Hexo’s revenues were up to $17M, from $14.5M last quarter, though MED revenue shrank 20% quarter over quarter to $695,000.
BNN Bloomberg
