Cannabis company Hexo Corp. says its fourth-quarter net revenue will fall below its expectations by roughly 40 per cent.
The company says net revenue for the fourth quarter, which ended July 31, is expected to be about $14.5 million to $16.5 million, compared with the roughly $26 million it had signalled previously.
In June, the company said it expected the fourth quarter to approximately double its third-quarter net revenues, which were $13 million, as it began realizing sales from the first harvests of its B9 greenhouse.
Based on preliminary financial information and subject to year-end closing adjustments, Hexo expects net revenue for its full financial year to be approximately $46.5 million to $48.5 million.
Hexo also said it was withdrawing its previously issued outlook for its 2020 financial year. It cited slower than expected store rollouts, a delay in government approval for cannabis derivative products and early signs of pricing pressure as reasons for its decision.
In June, Hexo had issued guidance of up to $400 million in net revenue in its 2020 financial year.
Last week, Hexo chief financial officer Michael Monahan resigned for family reasons.
Hexo will release its full financial results on Oct. 24.