Canadian cannabis producer Canopy Growth (WEED) has changed auditors as its financial situation continues to deteriorate.
The Smiths Falls, Ontario-based company announced the appointment of PKF O'Connor Davies LLP as its new accounting firm after its previous auditor KPMG resigned from the role.
KPMG’s resignation as Canopy Growth’s auditor comes a week after the company reported a net loss of $648 million for its fiscal fourth quarter and raised concerns about its ability to continue as a going concern.
Canopy Growth has had issues with the financial results reported by its BioSteel sports drink division, which made “material misstatements” in previous financial filings.
As a result, Canopy Growth had to refile three of its past quarterly financial statements with the help of former auditor KPMG.
At the same time as it announced a new auditor, Canopy Growth also said that it has completed the sale of its cannabis production facility located in Modesto, California.
Canopy Growth is selling production facilities to help it reduce spending and raise cash.
The company has now sold five production facilities for $81 million since April 1 of this year. It anticipates raising up to $150 million from facility sales by September 30.
Canopy Growth’s stock has declined 84% over the last 12 months to trade at $0.58 a share.
The stock was recently given a price target of “zero” by U.S. investment bank Benchmark Company.
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