By Adriano Marchese
Canopy Growth shares fell Tuesday after the company said it has to restate two years of financial results after discovering an accounting error.
Shares traded 5.6% lower at 1.34 Canadian dollars (98 U.S. cents). The stock is down 14% year-to-date, and down 41% over the last 52 weeks.
The cannabis company late on Friday said that it plans to file restated financial results for fiscal years 2025 and 2024, both ended on March 31 of their respective years.
Canopy said it identified a technical noncash accounting error where certain share-settled warrants with exercise U.S.-dollar denominated prices should have been classified as liabilities rather than equity instruments.
Because the company operates in Canadian dollars, the company should have recorded these instruments as liabilities on its balance sheets and measured them at fair value, with changes in fair value recorded in its statements, it said.
The company said the impact is expected to be limited and only noncash entries, it said, with no impact on core operating performance such as on revenue, gross margins, or operating income or loss.
The company discovered the error while undergoing the year-end financial reporting process for fiscal 2026, which it still expects to report on June 15.
Additionally, Canopy said it has applied for a management cease-trade order that would block its directors and officers from trading in the company's securities until it files the restated financial results.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
May 19, 2026 11:51 ET (15:51 GMT)
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