Proactive Investors - Canopy Growth Corp (TSX:WEED) saw its fourth-quarter net loss expand to $648 million from $707 million a year ago, as the cannabis company booked asset impairment and restructuring costs of $164 million during the period.
Canopy CEO David Klein also said it has parted ways with some staff at its BioSteel division as the company continues to review its operations after uncovering “material misstatements” in the sports drink unit's previous financial filings.
“We felt it was important to act swiftly to provide stability to the business at this pivotal time, so to this effect, we have exited several members of the BioSteel leadership team and are considering all legal remedies available to us including litigation to recover damages and costs associated with and resulting from the findings of the BioSteel review,” he stated.
In May, Canopy Growth reported that it plans to refile three of its past quarterly financial statements because of misstatements linked to BioSteel, a brand of dietary supplement products targeting athletes.
The misstatements involve its first-, second- and third-quarter filings from 2022, which are linked to BioSteel's "timing and amount of revenue recognition."
The company, however, revealed that BioSteel’s revenue surged 101% year over year in fiscal 2023, and claims the brand is continuing to gain market share in Canada, especially through NHL partnerships.
Canopy’s 4Q net revenue also fell 14% to $88 million due primarily to increased competition in the Canadian adult-use cannabis market and weaker performances from its Storz & Bickel and This Works businesses.
The company’s Canadian medical cannabis revenue, though, rose 8% year over year.
Shares of Canopy Growth have plunged more than 75% year to date.