Hexo Corp. reports $62.4M first-quarter loss
Cannabis plants are seen during a tour of a Hexo Corp. production facility, Thursday, October 11, 2018 in Masson Angers, Quebec. Cannabis company Hexo Corp. says its fourth-quarter revenue will fall below its expectations. THE CANADIAN PRESS/Adrian Wyld

OTTAWA — Cannabis company Hexo Corp. says it lost $62.4 million in its latest quarter compared with a loss of $12.8 million in the same quarter last year.

The loss amounted to 24 cents per diluted share for the quarter ended Oct. 31, compared with a loss of seven cents per share a year ago when the company had fewer shares outstanding.

Net revenue for what the first quarter of the company’s financial year totaled $14.5 million, up from $5.7 million a year ago.

Hexo Corp. announced in October that it was cutting 200 jobs to adjust for expected future revenues and “ensure the long-term viability” of the firm.

The company said it took a corporate restructuring charge of $3.7 million in the quarter related to severance and other payroll-related termination costs.

Sebastien St-Louis, Hexo’s CEO, and co-founder said the company has done “some pretty heavy lifting” as it works towards profitability in 2020.

“The choices that we have made and implemented have already led to a 25 percent reduction in our operating expenses,” he said in a statement.

“Cost control combined with our multi-brand approach, an updated strain mix, as well as the introduction of new products, will help us increase our market share and total revenue, leading us towards great results in 2020.”

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