Hexo warned that its fourth-quarter revenue will miss expectations due to "lower-than-expected product sell-through."
The cannabis company said that it expects fourth-quarter revenue to range between C$14.5 million to C$16.5 million ($10.9 million to $12.4 million), below Wall Street's forecast of C$24.8 million ($18.6 million). For the full-year, the company projects revenue to range between C$46.5 million and C$48.5 million ($34.9 million to $36.4 million).
Hexo was withdrawing its 2020 financial outlook due to regulatory uncertainty across the pan-Canadian system, and jurisdictional decisions that it thinks will limit the availability and types of cannabis derivative products.
"While we are disappointed with these results, we are making significant changes to our sales and operations strategy to drive future results," said Sebastien St-Louis, Hexo's CEO and co-founder.
On Monday, Michael Monahan, Hexo’s chief financial officer, resigned from the company, due to his "family's needs." Stephen Burwash, the vice president of strategic finance, stepped in as his replacement.