Quebec-based cannabis company Hexo Corp. HEXO, +6.63% HEXO, +5.81% said Thursday it had a net loss of C$4.33 million ($3.25 million) in its fiscal second quarter to Jan. 31, narrower than the C$8.95 million loss posted in the year-earlier period. But revenue rose to C$13.4 million from C$1.2 million in the first full quarter since Canada legalized cannabis for adult recreational use. The company sold 2,537 kg of adult-use cannabis, up from 952 kg in the previous quarter, at an average price of C$5.83 a gram, up from C$5.45 in the previous quarter. It produced about 4,938 kg of dried cannabis in the quarter, up from 3,550 kg in the October quarter. Headcount rose by 32% to 374 employees as the company ramped up production and new facilities came online. “While the Company continues to prepare for the initial harvests from its new 1,000,000 sq. ft. greenhouse which should be realized throughout the third quarter of fiscal 2019 and the activation of its product transformation centre in Belleville which is expected in the fourth quarter of fiscal 2019, net revenues for the third quarter are estimated to increase minimally from those of the second quarter,” the company said in a statement. It expects revenue to roughly double in the fourth quarter from the second quarter. The company said the fair value changes on the growth of its biological assets came to C$8.35 million. Shares rose 12% in premarket trade, and are up 95.5% in the last 12 months, while the S&P 500 SPX, +0.69% has gained 2.2%.
Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.