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Canopy Growth Restates Earnings Figure, Stock Sinks

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Canopy Growth

On February 20, Canopy Growth (WEED) (CGC) issued a press release saying that it had reported an incorrect number for adjusted EBITDA for the nine months that ended on December 31, 2018.

The company revised its adjusted EBITDA losses from 69 million Canadian dollars to 155 million Canadian dollars. According to the company, this error occurred due to an error in the formula on its spreadsheet.

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Stock lower premarket

Canopy Growth was down nearly 2.4% lower in the premarket trading session. Usually, companies don’t amend or restate their earnings results, as the practice is usually viewed in a negative light. However, the company stated that apart from the above-mentioned changes, no other changes were required to its unaudited interim financial statements.

It added, “Other than as expressly set forth in the Amended MD&A [management discussion and analysis], the Amended MD&A does not purport to update or restate the information in the Original MD&A or reflect any events that occurred after the date of the filing of the Original MD&A other than changes to the sections entitled Results of Operations, Third Quarter Review, and Adjusted EBITDA (Non-GAAP Measure).”

In the early morning session, Aurora Cannabis (ACB) and Cronos Group (CRON) were trading flat, Tilray (TLRY) was down 0.75%, and the ETFMG Alternative Harvest ETF (MJ) was trading just a bit higher at 0.06%.

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