BREAKING: Cannabis producer Canopy Growth to close flagship cultivation facility in Smiths Falls, Ontario, cut 800 jobs after losing $267 million in Q3.
Plans to "transform Canadian business" after losing $2.6 billion so far this fiscal year.
Story coming for @MJBizDaily
Plans to "transform Canadian business" after losing $2.6 billion so far this fiscal year.
Story coming for @MJBizDaily
@MJBizDaily Canada's federal government, via the @CanRevAgency, dumped almost $90 million of taxpayer money into Canopy over the past 2 years, making it the largest gov't-subsidized cannabis producer in the world.
The free money came amid a massive supply glut of cannabis in the market.
The free money came amid a massive supply glut of cannabis in the market.
Why did Canopy have such a poor quarter, including lower gross margin?
Canopy cites lower subsidies received from the 🇨🇦 government (free taxpayer money). #cdnpoli #cdnbiz
Canopy cites lower subsidies received from the 🇨🇦 government (free taxpayer money). #cdnpoli #cdnbiz
Exactly the problem. The Canadian federal government has been gauging all cannabis producers by taxing revenue, and then heavily subsidizes the most inefficient businesses in the industry. The CRA really messed this up. #cdnbiz #cdnpoli
https://twitter.com/jeff_goldenberg/status/1623706524215398400
More on canopy's government funding problem below. I don't want to get into that in detail today.
Moving on ...
->
Moving on ...
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https://twitter.com/matt_lamers/status/1531985409265348608
Analyst to CEO: "I want to congratulate the company for ringing the opening bell at Nasdaq on Dec. 12"
After Canopy's layoffs, MP @ScottReidCPC says there are many reasons industry is suffering, but "overwhelming factors are the direct responsibility of the...federal government: unreasonably high taxation and high-cost regulatory burden that drives up the compliance costs" of LPs.
@ScottReidCPC Thousands of Canadians lost their jobs in the cannabis industry over the past 3 years, as the biggest producers collectively lost over $16 billion.
@ScottReidCPC said Canopy was largest single private-sector employer in his constituency until today.
scottreid.ca/my-statement-o…
@ScottReidCPC said Canopy was largest single private-sector employer in his constituency until today.
scottreid.ca/my-statement-o…
While Mr Reid is correct that there are architectural failures in the cannabis industry's reg and legal foundation, established by the gov't, it's also true that Big LPs and Bay Street are responsible for one of the most reckless periods of capital deployment in 🇨🇦 in decades.
Perspective: Canopy's B2B rec cannabis sales collapsed over the past 3 years.
In the 3 months ended Dec 31, 2020, business-to-business cannabis revenue was $43.1 million.
In the same quarter three years later, it was $21.5 million—down a stunning 50%.
sec.gov/ix?doc=/Archiv…
In the 3 months ended Dec 31, 2020, business-to-business cannabis revenue was $43.1 million.
In the same quarter three years later, it was $21.5 million—down a stunning 50%.
sec.gov/ix?doc=/Archiv…
UPDATED for @MJBizDaily: Cannabis producer Canopy cutting 800 jobs, closing flagship Canadian facility
At this time it is unclear where Canopy's executive offices will be located once 1 Hersey in Smiths Falls is closed in six months.
mjbizdaily.com/cannabis-produ…
At this time it is unclear where Canopy's executive offices will be located once 1 Hersey in Smiths Falls is closed in six months.
mjbizdaily.com/cannabis-produ…
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