Canopy Growth Corporation Files Amended and Restated Fiscal

Canopy Growth Corporation (TSX:WEED.TO) (OTC:TWMJF) has filed its amended and restated consolidated financial statements and amended and restated Management’s Discussion and Analysis for the year that ended on March 31, 2017 on SEDAR. As a result of the restatement, Canopy’s reported net loss was reduced from $16.7 million to $7.6 million. The restatement accounts for:

Canopy Growth’s 11% equity interest and options in AusCann Group Holdings Ltd. The value was understated by $18.3 million and $5.7 million, respectively, at March 31, 2017 which was previously carried at its cost base of nil being the consideration paid for the minority interest.

The equity interest in AusCann was classified as an available-for-sale financial asset, an IFRS term. The options represent a derivative financial instrument that is initially recognized at fair value and subsequently re-measured to its fair value at the end of each reporting period. Prior to February 3, 2017 the AusCann shares did not have a quoted market price and the fair value of its equity interest and options in AusCann could not be reliably measured and the equity interest and options were carried at their cost amount of nil. In the quarter that ended on March 31st, AusCann completed a capital reorganization and became listed on the Australian Stock Exchange. Following the initial public offering, Canopy’s shares and options were placed in escrow until February 3, 2019.

Canopy Growth made a correction of an immaterial non-cash error in the valuation of biological assets as of March 31st, as previously disclosed in the condensed interim consolidated financial statements for the first quarter that ended on June 30th.

Source: Technical 420