Canopy Rivers Inc. says it swung to a loss in its third quarter of 2020 and has withdrawn its full-year guidance over multiple headwinds in the cannabis industry.
The venture-capital arm of Canopy Growth says it had a net loss of $2.7-million, or one cent a share, for the three months ending Dec. 31, compared with a net income of $1.4-million, or one cent a share, a year earlier.
Analysts had expected a net loss of two cents a share, according to financial markets data firm Refinitiv.
Canopy Rivers says it has withdrawn its full-year guidance because uncertainty created in the industry from unanticipated licensing delays, “reformed views” on the ramp-up time for large-scale cannabis greenhouses and a general decline in wholesale cannabis prices.
The firm, which holds investments in numerous cannabis firms, had previously expected earnings before deductions of between $85-million and $100-million from its PharmaHouse and Vert Mirabel holdings.
Canada’s cannabis industry has struggled to reach profitability since legalization of marijuana products and companies have turned to cost-cutting measures.
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