Cronos Group To Close Canadian Facility, Reports Q4 Net Loss Of $133.9 Million

Cronos Group (TSX: CRON) appears to be finally taking steps to address its absolute lack of ability to generate any sense of positive income. The firm this morning as part of its fourth quarter financial results announced that it will be closing its Peace Naturals facility in Stayner, Ontario.

The closure is expected to be completed by the end of 2022, with the entire campus to be sold off. The company during the fourth quarter recognized a $119.9 million impairment as a result of the decision, with an additional $4.5 million in charges to come. Going forward, the company intends to use its Cronos GrowCo joint venture and contract growers to supply its needs for the Canadian market.

R&D initiatives, including product development, are expected to to “continue across multiple facilities available to Cronos,” with further details not provided.

In terms of fourth quarter results, the company saw its revenue grow to $25.8 million, up from $20.4 million in the third quarter. Cost of sales came in at $23.9 million, resulting in gross profits of just $1.9 million for the three month period. Net losses for the quarter meanwhile amounted to $133.9 million.

For the full fiscal year, the company saw total net revenues of $74.4 million, along with a cost of sales of $80.0 million, as well as inventory write-downs of $12.0 million, leading to a negative gross profit of $17.5 million for the full year. Operating expenses meanwhile amounted to $543.1 million, lead by impairments to the tune of $383.7 million, as well as general and administrative expenses of $96.5 million.

After positive other income, a result of a $151.4 million gain on revaluation of derivative liabilities, the company posted a net loss of $397.2 million for the full fiscal year.

The company as of December 31 reported a cash position of $887.0 million, as well as short term investments of $117.7 million. Total current assets amounted to $1,079.7 million, while total current liabilities amounted to $54.4 million.

Cronos Group last traded at $4.55 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization unless otherwise mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Cronos Confirms That It Has Received Expressions Of Interest, While Curaleaf Refuses To Comment

Cronos Group (TSX: CRON) has confirmed that it has received what amounts to “a number”...

Friday, July 7, 2023, 08:37:08 AM

Cronos Group Delays Financials Due To At Least $220 Million In Goodwill, Intangible Asset Impairments

While some people are currently speculating that Cronos Group (TSX: CRON) hasn’t announced a filing...

Tuesday, November 9, 2021, 07:50:35 AM

An Illustrated Look at Cronos Group Following their Q3 Earnings

As a follow up to our quick take this morning on Cronos Group (TSX: CRON,...

Tuesday, November 12, 2019, 08:07:31 PM

Democrats Take Aim At “Big Cannabis” In Proposed CAOC Legislation

It appears that the federal legalization of cannabis in the United States might not be...

Tuesday, September 7, 2021, 05:33:00 PM

Cronos Group, Ginkgo Bioworks Achieve Partnership Productivity Target For CBG Acid

Cronos Group, Inc. (TSX: CRON) and Ginkgo Bioworks announced this morning that its partnership has...

Monday, August 23, 2021, 10:38:00 AM