(Montreal) Cannabis producer Hexo has enough cash to wait for the lifeline, announced at the beginning of the month, by its competitor Tilray, assures the management of the Gatineau company, which revealed, on Friday, a quarterly loss of 690 million.
Posted at 10:44 a.m.
Hexo, which is trying to improve its financial situation, signed an agreement at the beginning of March with its competitor Tilray, which will buy up to 211 million convertible debt securities giving it the right to buy back up to 37% of the shares. of Hexo.
Until the deal closes, Hexo has plenty of cash, chief financial officer Curtis Solsvig said on a conference call to discuss the latest quarterly results. “We are monitoring our liquidity very, very closely. We manage them very carefully. […] We believe we have enough cash to make it through to closing the deal with Tilray in mid-May. »
The CFO made the comment as Hexo reported financial results that fell short of analysts’ forecasts.
For the second quarter ended January 31, the producer posted a loss of 690 million, compared to a loss of 117 million in the same period last year.
Hexo recorded a charge of 616 million. The charge takes into account the problems of the company and allows it to “start on new bases”, according to management.
The adjusted loss per share reached 94 cents, compared to 17 cents for the same period last year. Revenues, for their part, increased by 61% to 52.8 million.
Prior to the earnings release, analysts had expected an adjusted loss per share of 7 cents and revenue of 55.8 million, according to forecasts compiled by financial data firm Refinitiv.
The action lost, Friday morning, 4 cents, or 5.06%, to trade at 75 cents on the Toronto Stock Exchange.