Cronos Group CRON opened Thursday morning at $6.62 a share, but quickly lost ground on the heels of an earnings report showing a second-quarter net loss of $107 million.
Cronos also reported a $40-million impairment charge related to a cannabidiol deal with CBD brand Lord Jones and a $35.9-million noncash loss related to an investment from cigarette conglomerate Altria Group MO.
"In the second quarter of 2020, we continued our progress despite unprecedented shifts in our industry and the global economy," Cronos CEO Mike Gorenstein said in a prepared statement.
Cronos Q2 Earnings Breakdown
- Net revenue of $9.9 million for the three-month period increased by $2.2 million year-over-year.
- The increase was credited to sales resulting from the rollout of cannabis vaporizers in the Canadian market and the Redwood acquisition.
- Cronos cited an inventory write-down of $3.1 million on dried cannabis and cannabis extracts.
- The company anticipates "further inventory write-downs" due to pricing pressures in the marketplace.
- An operating loss of $34.8 million in the second quarter of 2020 represents an $18-million year-over-year increase.
Cronos has more than $1.1 billion in cash and cash equivalents, including $213 million in short-term investments, according to Barron's.
CRON Price Action
Cronos shares were down 15.01% at $5.93 at last check Thursday.
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