Canopy Growth Corp. (CGC) - Get Canopy Growth Corporation Report posted better-than-expected revenue for its fiscal third quarter in a report released shortly before midnight Thursday and said its CFO plans to depart the company later this year.
The cannabis company posted a diluted loss of 38 cents a share in Canadian currency on revenue after excise taxes of C$83 million. In the same quarter a year ago Canopy posted earnings of 1 cent a share in Canadian currency on restated revenue of C$22 million.
The company had been expected to post a loss of 13 cents a share on revenue of $61 million, based on a FactSet survey of 5 analysts.
Canopy said its chief financial officer, Tim Saunders, plans to retire in mid-to-late 2019.
The stock was rising 0.7% in premarket trading Friday to $46.15.
Last year Corona-owner Constellation Brands (STZ) - Get Constellation Brands, Inc. Class A Report , invested $4 billion in the company. TheStreet's Jim Cramer noted in an interview ahead of the release that Canopy is in spending mode thanks to its strong balance sheet as it seeks to dominate the emerging cannabis market.
A big name in the cannabis products market, Canopy became the first pot company to list its shares in the U.S. last year.
Canopy also owns subsidiary Tweed and has edged into the medical marijuana business, which is legal in some U.S. states.
Like other cannabis companies, Canopy's growth potential is strongly tied to regulation in its key markets. Though many states allow some controlled pot sales or use, the drug is banned nationally in the U.S.
But perceptions have been changing, and a day before the company's earnings were released, the U.S. Congress held its first hearing on so-called cannabis banking to consider allowing financial institutions to back pot businesses. Currently, because pot use and sales are illegal under federal law, banks cannot offer services to marijuana-related businesses without the potential for prosecution, leaving operations in states where the drug is legal to rely on cash.
While some hope the U.S. will change its tune on pot, Canada already did last year when it began officially allowing recreational use of marijuana, following in the path of Uruguay.
In addition to North America, Canopy through its brands has a presence in several countries including Australia, Germany, Chile and Denmark.
Earlier this month, Canopy said it planned to up its total investment in Canopy Rivers Inc. RIV by $22.5 million, or C$30 million.