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The legal cannabis industry in Canada is struggling to cope with the illegal marijuana industry, hampering growth amid delays in regulatory backing from both the U.S. and Canada.
Canopy had first raised the going concern doubts in June.
The company has taken several initiatives to turn profitable, including job cuts, exits from some international markets, store closures and divestiture of its retail business across Canada.
The Smiths Fall, Ontario-based company had C$533.3 million in cash and cash equivalents as of June 30, compared with C$677 million at the end of March.
Its total debt was $1.05 billion at the end of the reported quarter.
The cannabis firm’s quarterly net revenue grew 3% to $108.7 million, aided by expansion in its BioSteel segment, which makes sports nutrition products.
It is also facing an investigation from the U.S. Securities and Exchange Commission over the reporting of revenue from BioSteel.
Canopy had launched an internal review in June for BioSteel and let go of several members of the segment’s leadership team following completion of the assessment.
The company’s adjusted core loss narrowed to C$57.8 million for the three months ended June 30, compared with a loss of C$79 million a year earlier.
