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Beleaguered Cannabis Company To Report Q4 Results Tomorrow

Canadian cannabis company HEXO Corp (HEXO) (HEXO.TO) is slated to release complete financial results for the year ended July 31, 2019, on October 28, 2019, and hold its earnings call at 8:30 a.m. EDT on Tuesday, October 29, 2019.

As part of rightsizing its operations to adjust to a changing market and regulatory environment with a view towards profitability and long-term stability, the Company, on October 24, 2019, laid off roughly 200 positions including some executive positions and the departures of Arno Groll, Chief Manufacturing Officer and Nick Davies, Chief Marketing Officer.

Earlier this month, the Company slashed its fourth-quarter revenue outlook and withdrew its fiscal year 2020 outlook, citing slower than expected store rollouts, a delay in government approval for cannabis derivative products and early signs of pricing pressure. The Company was expecting to double net revenue in Q4 fiscal 2019, and report revenue of up to C$400 million in fiscal 2020. The net revenue in fiscal third-quarter was nearly C$13 million.

Nearly a week prior to HEXO announcing that its fourth-quarter revenue is going to be lackluster, the Company's Chief Financial Officer, Michael Monahan, tendered his resignation.

Net revenue for the fiscal fourth quarter is now estimated to be in the range of approximately C$14.5 million to C$16.5 million and net revenue for the fiscal year 2019 is anticipated to be in the range of C$46.5 million to C$48.5 million.

HEXO closed Friday's trading at $2.38, down 5.56% on the NYSE.

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