Cannabis company Hexo Corp., which has a manufacturing facility in Belleville, reported a net loss of $690.3 million in its latest quarter as it recorded $616 million in one-time impairment charges.
The company says the quarter was focused on realigning its balance sheet to position it for growth and consequently included the significant impairment charges.
Hexo says the loss amounted to $1.94 per diluted share for the quarter ended January 31, compared with a net loss of $20.8 million or 17 cents per share a year earlier.
Net revenue in what was the company’s second quarter totalled $52.8 million, up from $32.9 million in the same quarter last year.
Earlier this month, Hexo announced a deal with fellow cannabis company Tilray Brands Inc.
Under the agreement, Tilray will acquire up to US$211 million of senior-secured convertible notes that were issued by Hexo. They will also launch a joint venture to provide shared services to both companies.
