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Dec. 31, 2019, 3:49 p.m. EST

Cannabis producer Hexo corrects accounting errors in re-filed financial statements

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By Max A. Cherney

Cannabis producer Hexo Corp. /zigman2/quotes/206508254/composite HEXO -7.09% /zigman2/quotes/200008967/delayed CA:HEXO -6.49% filed a correction to its financial statements with Canadian regulators late Tuesday, narrowing the company's losses for the full fiscal-year ending in July and the October quarter. Hexo stock rose 4.5% in late-afternoon trading Tuesday. The company's fiscal first-quarter losses will narrow to C$60 million ($46.2 million), which amounts to 23 cents a share, from C$62.4 million, or 24 cents a share. The company now reports a full fiscal-year net loss of C$69.6 million, or 33 cents a share, versus losses of C$81.6 million. Hexo said in the filing, that it had corrected an error in how it calculated its deferred tax liabilities, which resulted in gain of C$14.4 million. In the filing, Hexo also said that the company wrote-down the value of its cannabis trim inventory by C$2.4, saying that the revised estimated fair market value was due to "new and available party party information." The company did not immediately return a request for comment. Hexo stock has lost more than half its value in 2019, as the Horizons Marijuana Life Sciences Index ETF fell 43%.

/zigman2/quotes/206508254/composite
US : U.S.: NYSE
$ 1.31
-0.10 -7.09%
Volume: 4.20M
Feb. 24, 2020 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$356.50 million
Rev. per Employee
N/A
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/zigman2/quotes/200008967/delayed
CA : Canada: Toronto
$ 1.73
-0.12 -6.49%
Volume: 1.43M
Feb. 24, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$470.80 million
Rev. per Employee
N/A
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