Canopy Rivers Posts Quarterly Net Loss, Withdraws 2020 EBITDA Guidance

Canopy Rivers Inc. RIV CNPOF reported third-quarter results Friday, posting a net loss of CA$2.68 million ($2.02 million) versus net income of CA$1.42 million in the same period last year.

The company reported a loss per share of CA$0.01 for the period versus earnings per share of CA$0.01 in the same quarter of fiscal 2019.  

Canopy Rivers' quarterly operating income reached CA$1.8 million — down from CA$8.38 million for the three-month period ended Dec. 31, 2018 — mostly thanks to royalty interest and lease income of CA$5 million.  

Canopy's business milestones during the quarter included the finalization of a loan to TerrAscend Canada; partnering with Kindred Partners Inc.l adding Thirty Five Ventures, run by NBA Star Kevin Durant, as a strategic advisor; and investing an additional CA$1.5 million in PharmHouse; and an additional CA$1 million in High Beauty.

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The company withdrew its previous calendar year 2020 EBITDA guidance in connection to PharmHouse and Vert Mirabel in the range of CA$85 million to CA$100 million.

"It was a challenging end to 2019 for the valuations of publicly-traded cannabis companies, which naturally impacted our results for the quarter," Canopy Rivers CFO Eddie Lucarelli said in a statement. 

"However, we continue to believe that these headwinds for the cannabis sector are temporary, and that the strength of our balance sheet positions us well to weather the storm. A strong pipeline of global investment opportunities, positive trends in supply chain and retail developments in Canada, and impending milestones at our portfolio companies truly excite us for what's to come in 2020." 

The stock was down 3.11% at 90 cents at the time of publication Friday.

Related Links:

Canopy Rivers Subsidiary BioLumic Receives Approval For UV Lighting Cultivation In New Zealand

Canopy Rivers Adds Kevin Durant's Thirty Five Ventures To Strategic Advisory Board

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