Company: CGC
Filing Date: 2025-02-07
Form Type: 10-Q
Source: 0000950170-25-015839
Chunk: 264

Company: Canopy Growth Corp
Filing Date: 2025-02-07
Form: 10-Q
Item: Item 8
Chunk 264
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 is uncertain if the Capital Gains Proposals will be re-introduced and enacted in its current form or at all.

Facility Lease Renegotiation

In December 2024, the Company renegotiated the terms of a facility lease, resulting in a short-term to long-term reclassification of its lease liabilities (the “Lease Renegotiation”). The renegotiated terms result in changes to future cashflows associated with the lease.

Part 2 - Results of Operations

The results of operations presented below reports the financial performance of the continuing operations of Canopy Growth for the three and nine months ended December 31, 2024. Further to Note 4 in the Company’s accompanying financial statements, the BioSteel segment results for all periods prior to September 14, 2023 and November 16, 2023, being the effective dates of deconsolidation as a result of the CCAA Proceedings (as defined below), are classified as discontinued operations and therefore are excluded from continuing operations.

41

On September 14, 2023, Canopy Growth ceased funding the operations of BioSteel Sports Nutrition Inc. (“BioSteel Canada”) and commenced proceedings (the “CCAA Proceedings”) under the Companies' Creditors Arrangement Act (the “CCAA”) in the Ontario Superior Court of Justice (Commercial List) and obtained recognition of that proceeding under Chapter 15 of the United States Bankruptcy Code.

Discussion of Results of Operations for the Three Months Ended December 31, 2024

    Three months ended December 31,

    (in thousands of Canadian dollars, except share amounts and      where otherwise indicated)
     
    2024

    2023

    $ Change

    % Change

    Selected consolidated financial information:

    Net revenue
     
    $
    74,761

    $
    78,505

    $
    (3,744
    )

    (5
    %)

    Gross margin percentage

    32
    %

    36
    %

    -

    (400) bps

    Net loss from continuing operations
     
    $
    (121,896
    )
     
    $
    (230,276
    )
     
    $
    108,380

    47
    %

    Net loss from continuing operations   attributable to Canopy Growth Corporation
     
    $
    (121,896
    )
     
    $
    (230,276
    )