The company’s shift follows a period of contraction in its domestic consumer cannabis segment, where revenue plummeted by more than half compared to the previous year. This decline is further exacerbated by recent government-mandated price cuts in Canada, which took effect in April. By doubling down on EU-GMP certified production capacity, Chief Executive Miguel Martin aims to capture more profitable international market share.

Despite the long-term outlook, recent financial performance shows a mixed picture. Total revenue for the quarter ending March 31 rose 10% to 84.8 million Canadian dollars, exceeding analyst expectations. However, profitability remains under pressure. The company reported a net loss of 27.6 million Canadian dollars from continuing operations, a significant widening from the 12.1 million loss recorded during the same period last year. Adjusted earnings also saw a sharp decline, falling to 5.6 million Canadian dollars from 15.3 million.