On Wednesday, Cannabis Packaging Company KushCo stated that a milestone of payments was wrongly recorded in their database. Due to which the Cannabis stocks generated a mixed review where Green Thumb Industries Inc. witnessed a giant revenue jump and the packaging company KushCo went down because of the accounting errors. The company states that the losses are going to double the 2018 losses.
Green thumb’s revenue (GTBIF, +0.99%) received a major hike to $20.7 million in the fourth quarter from $6.2 million earlier this year. The company had witnessed a net loss during this period as the cannabis legalization was still in process in Canada. The company is enlisted at Canadian Securities Exchange under the ticker name GTII as well as over U.S counter but still, it does not receive any reliable coverage.
KushCo stocks a holding of KSHB -7.76% which lowered to 6.5 % after the issue of financial statements for FISCAL years 2018 and 2017. The company said it expects net losses to be double to $24.3 million from $10.2 million in 2017. Kush Co is engaged in Cannabis Packaging along with other products and services. It mentioned the faulty representation of facts about payments to CMP Wellness and Hybrid active were recorded as equity where they should have been recorded as a liability. In a separate statement, the company mentioned it would update the file as soon as possible.
This is not the first company which is pushed to cite restatement, in the past Canopy Growth Corp, had to restate one earning metric because of a wrong formula implementation.
On the other hand, Hexo has emerged as a potential leader, with boosting confidence to generate revenue to $400 million in the fiscal year 2020. It has targeted CBD to the U.S market and eight states; the project is in pipeline until the approval of the FDA by 2020.
One of the analysts wrote “From here, we remain focused on the ability of industry participants to deliver on supply and longer-term develop brands and differentiated products/experiences. It still remains difficult to pick the ultimate global winners at this early juncture, especially with the rollout of more advanced products coming later this year and beyond. We continue to believe HEXO has the potential to be one of the leaders down the road on the CPG side,”
According to the website Green Market Report, New York State has recently not approved few cannabis deals, viz. MedMen Enterprises Inc. MMNFF, +2.04% acquired MedMen Enterprises Inc. MMNFF, +2.04% acquisition of Pharmacann , The Green Thumbs Industries acquisition of Fiorello Pharmaceuticals and the Cresco Labs Inc. CRLBF, +4.02% deal with Valley, Agriceuticals.