Canadian cannabis producer Cronos reported a net loss of $161 million (195 million Canadian dollars) for its January-March quarter on net revenue of only $12.6 million, according to its quarterly financial statement released Friday.
The Toronto-based company’s operating loss for the quarter was $43.5 million.
Revenue was well below analyst expectations of around $16 million for the period.
Most of the net loss, $116.9 million, is attributed to a loss on revaluation of derivative liabilities, which is based on factors such as the company’s share-price volatility.
Cronos said it plans to launch a line of cannabis edibles under the Spinach brand in the coming weeks.
“Cronos Group approaches product launches with an aim to be the best, not necessarily the first,” the company’s news release noted.
Canadians purchased CA$109 million worth of recreational cannabis edibles in 2020.
By geographic region, Cronos’ net revenue consisted of:
- $7.5 million in Canada.
- $2.5 million in Israel.
- $2.4 million in the United States.
- $70,000 in other countries.
The company also disclosed its four major customers, defined as customers individually accounting for greater than 10% of revenues, outside the United States.
- Société Québécoise du Cannabis, the wholesaler of adult-use marijuana in Quebec (18%, or $2.6 million).
- Novolog Group, an Israeli health-care company (17%, or $2.5 million).
- Alberta Gaming, Liquor and Cannabis Commission, the wholesaler of adult-use marijuana in Alberta (13%, or $1.9 million).
- Ontario Cannabis Retail Corp., the wholesaler of adult-use marijuana in Ontario (13%, or $1.9 million).
Cronos had cash and cash equivalents of $1.02 billion as of March 31, 2021.