Hexo Posts Higher Year-Over-Year Q1 Net Loss

HEXO Corp. HEXO HEXO reported first-quarter net revenue of CA$14.5 million ($11.05 million) Monday, down from CA$15.4 million in the previous quarter and CA$5.7 million one year ago. 

The company's net loss for the quarter was CA$62.4 million versus a net loss of CA$12.8 million in the same quarter of the previous year.

The first-quarter adjusted EBITDA loss of CA$24.6 million versus an adjusted EBITDA loss of CA$10.5 million in the same period last year. 

The cannabis company's operating expenses fell by 25% quarter-over-quarter to CA$35 million. 

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The milestones achieved during the quarter include the launch of the Original Stash brand in Quebec, the receipt of a Phase 1 research license for its Belleville facility and a license for Cannabis 2.0 products at its Gatineau facility. 

After the quarter ended, Hexo said it closed a CA$70-million private placement of 8% unsecured convertible debentures and brought its Original Stash brand to Ontario.

“We have done some pretty heavy lifting on our operations, as we work towards profitability in 2020. The choices that we have made and implemented have already led to a 25% reduction in our operating expenses,” Sebastien St-Louis, CEO and co-founder of Hexo Corp., said in a statement.

The stock was trading down 6.7% to $2.09 in Monday's premarket session. 

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Photo courtesy of Hexo.