Folks, Canopy has released a presser but not published fins. If they publish after hours I should have something more formal up by Monday at noon.

But I figured you would want some notes:

Pluses

Growth in International cannabis revenue by $4.2 million or 22%.

Minuses

Yoinked aEBITDA guidance. We had this pegged on March 31, 2021 figures.

Sales decreased 3.5% QoQ. Each segment except International Cannabis sales, decreased.

B2B Adult use sales, net of $14 million from Supreme and Ace acquisitions, is lowest on record. Like, since adult use was launched.

$14 million in Supreme and Ace revenue would equal Supreme ONLY revenue in March 31, 2021 Q.

Gross Margin gets an $87 million impairment and rings in at negative 54%. Without impairment and step-up GM is 14%.

How they will get to 30% let alone 40% GM when Other Revenue has a 32% GM and B2C (Retail) is likely sub 30% is a work of fiction. They need cannabis GM, which is presently 8% without impairment and step-ups, to exceed 40% when their best adjusted GM on cannabis is 22% over past 6 Qs.

Other Financial Assets decrease $282 million to $509 million as stock prices fall in their portfolio companies.

This dog won’t hunt.

The preceding is the opinion of the author and is in no way intended to be a recommendation to buy or sell any security or derivative. The author does not have a position in CGC and will not start one in the next five days.