Canadian cannabis company Hexo Corp. (HEXO) reported a $116.9 million loss for its fiscal first quarter as it announced a new strategic plan aimed at reducing costs, streamlining its business, and improving growth.
The Gatineau, Quebec-based company's loss amounted to 46 cents per diluted share for the quarter ended October 31, compared with a loss of $4.2 million, or four cents per share, in the same period a year earlier.
The widening loss comes as Hexo is overhauling its operations and leadership after company co-founder and chief executive officer (CEO) Sebastien St-Louis and chief operating officer (COO) Donald Courtney departed the company in October.
The company said its “Path Forward” strategy contains five goals: reducing production costs, streamlining the company's organizational structure, realizing cost synergies from acquisitions and plant closures, focusing on revenue management through disciplined pricing and accelerating growth through market share gains.
As part of the plan, the company will refocus on medical cannabis and integrate its recent acquisitions of Zenabis Global Inc., Redecan and 48North. Hexo said it expects to find $50 million in synergies from those acquisitions.
