(INVESTORS) – Cronos Group stock and other marijuana stocks fell on Thursday after the Canadian cannabis producer reported a steeper-than-expected second-quarter loss, as lower pot prices in Canada and coronavirus-related store closures in the U.S. triggered millions in impairments and write-downs.
The company said it expected those also racked up costs related to a review of last year's financial results. That review concerned purchases and sales made through its business-to-business channel.
Cronos reported the results as the marijuana industry reckons with layoffs, coronavirus restrictions and overvalued assets.
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Sales rose 29% from a year ago to $9.883 million, beating forecasts for $8.45 million. Cronos Group (CRON) sales got a boost from the launch of vaping products in Canada and the acquisition of Redwood, which makes CBD products in the U.S. under the name Lord Jones.
However, the company lost 31 cents per share. That was worse than the 6 cents expected by Zacks Investment Research.