New Brunswick-based cannabis grower and manufacturer Organigram Holdings posted a net loss of 213.5 million Canadian dollars ($162.1 million) for its third quarter, driven by a CA$191.2 million impairment loss.
The impairment charges for the quarter ended May 31 included CA$37.9 million in intangible assets and goodwill as well as CA$153.3 million in property, plant and equipment.
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“A meaningful contributing factor to the conditions that led to the quantum of the impairment charge related to the impact to flower sales and margins due to THC inflation,” Organigram noted in a news release.
Organigram CEO Beena Goldenberg acknowledged on a Friday earnings call that THC inflation – the dishonest practice of labeling cannabis products with exaggerated THC levels – is not a new phenomenon.
But, she added, it “was more widespread in the last year.”
Goldenberg said nearly 50% of cannabis flower sales in the third quarter
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