Cannabis company Hexo Corp. outlined its plans to enter eight U.S. states with CBD products in 2020 as it reported third-quarter earnings that fell short of expectations, sending its stock lower.
Cannabis is legal for medical and recreational use in several U.S. states, but remains illegal at the federal level south of the border. However, the passage of a U.S. law late last year has allowed for the growing of hemp for the purposes of extracting CBD. Hexo’s quarterly net loss deepened to $7.75 million, from a $1.97-million loss a year earlier, as operating expenses jumped to $24.1 million from $5.3 million during the same period in 2018.The company’s stock on the Toronto Stock Exchange on Thursday slipped as low as $7.78, down 8.8 per cent from $8.53 on Wednesday.
Hexo said Thursday that it still expects to ramp its net revenue to $400 million by its 2020 financial year.