Canada’s biggest federally licensed medical marijuana producer, Canopy Growth, posted a loss of 16.7 million Canadian dollars ($12.84 million) in the last fiscal year, but it’s all part of the company’s expansion plans.
The Smiths Falls, Ontario-based company has an aggressive growth plan for its production facilities as it tries to position itself to serve Canada’s recreational market when it launches next year, The Globe and Mail reported.
Canopy’s expansion costs in its most recent fiscal quarter were CA$5.4 million, including CA$4.6 million related to the company’s acquisition of Toronto-based licensed producer Mettrum, according to the newspaper. Mettrum also added CA$1.7 million to Canopy’s quarterly general and administrative expenses and CA$1 million to sales and marketing expenses.
Canopy plans to expand its main facilities in Smiths Falls by acquiring a 100,000-square-foot facility in Fredericton, Ontario, for indoor production and is working on a 160,000-square-foot indoor facility in Edmonton, Alberta, The Globe and Mail reported.
Canopy’s focus on the adult-use market hasn’t affected the company’s gains in the MMJ sector, however. According to the newspaper, Canopy generated CA$203 million in revenue from its medical marijuana program and more than doubled its patient base to 58,000 – about 34.5% of the roughly 168,000 patients who were registered through March 31.