SMITHS FALLS, Ont. — Canada's largest publicly traded producer of medical marijuana says it doesn't expect a significant impact from a court decision against the federal law that requires patients to buy their cannabis from commercial producers.
Canopy Growth Corp. (TSXV:CGC) — formerly known as Tweed Marijuana — says the regulations that underpin its business remain in effect while the federal government decides how to comply with the Federal Court decision released Wednesday.
It says the company's management doesn't believe the decision "will materially impact Canopy Growth."
The assessment was contained in Canopy's latest financial report, which showed its revenue and sales volume have been growing exponentially but the company remains unprofitable.
Revenue for the three months ended Dec. 31 was $3.5 million, up from just $641,000 a year earlier.
It sold 462,000 grams at an average price of $7.34 per gram during the period, Canopy's fiscal third quarter. That compares with 87,000 grams at $7.04 per gram in the comparable period a year earlier.
Net loss was $3.3 million or four cents per share, compared with $2.6 million or seven cents per share a year earlier when there were fewer shares outstanding.
On Wednesday, Federal Court judge Michael Phelan ruled that a law governing the sale of medical marijuana — brought in by the Harper Conservatives — was an "arbitrary and overbroad" violation of charter rights.
The judge gave the new Trudeau Liberal government six months to craft new legislation. The government also has a right to appeal the Federal Court decision.
The Canadian Press
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