Document And Entity Information
Document And Entity Information | 12 Months Ended |
Jul. 31, 2022 shares | |
Entity Addresses [Line Items] | |
Entity Registrant Name | HEXO CORP. |
Entity Central Index Key | 0001690947 |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --07-31 |
Entity Common Stock, Shares Outstanding | 600,988,447 |
Document Type | 40-F |
Document Period End Date | Jul. 31, 2022 |
Entity Interactive Data Current | Yes |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Trading Symbol | HEXO |
Security Exchange Name | NASDAQ |
Title of 12(g) Security | Common Shares, no par value |
Entity File Number | 001-38781 |
Entity Incorporation, State or Country Code | Z4 |
Entity Address, Address Line One | 120 Chemin de la Rive |
Entity Address, City or Town | Gatineau |
Entity Address, State or Province | QC |
Entity Address, Postal Zip Code | J8M 1V2 |
City Area Code | 844 |
Local Phone Number | 406-1852 |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Document Annual Report | true |
Document Registration Statement | false |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Ottawa, Canada |
Auditor Firm ID | 271 |
Business Contact | |
Entity Addresses [Line Items] | |
Contact Personnel Name | CT Corporation System |
Entity Address, Address Line One | Street N.W |
Entity Address, Address Line Two | Suite 1000 |
Entity Address, City or Town | Washington |
Entity Address, State or Province | DC |
Entity Address, Postal Zip Code | 20005 |
City Area Code | 202 |
Local Phone Number | 572-3100 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 83,238 | $ 67,462 |
Restricted funds | 32,224 | 132,246 |
Cash held in escrow | 0 | 285,779 |
Trade receivables | 42,999 | 37,421 |
Commodity taxes recoverable and other receivables | 7,411 | 13,549 |
Prepaid expenses | 18,339 | 7,490 |
Inventory | 66,409 | 135,327 |
Biological assets | 15,906 | 14,284 |
Assets held for sale | 5,121 | 0 |
Total current assets | 271,647 | 693,558 |
Non-current assets | ||
Property, plant and equipment | 285,866 | 393,902 |
Intangible assets | 94,343 | 50,608 |
Investment in associate and joint ventures | 17,999 | 74,679 |
Lease receivable | 0 | 4,453 |
Long-term investments | 504 | 2,492 |
Prepaid expenses | 10,590 | 3,922 |
Goodwill | 0 | 88,189 |
Total assets | 680,949 | 1,311,803 |
Current liabilities | ||
Accounts payable and accrued liabilities | 72,581 | 63,557 |
Excise taxes payable | 6,421 | 6,591 |
Warrant liabilities | 717 | 5,733 |
Lease liability | 914 | 1,730 |
Senior notes payable | 0 | 50,159 |
Convertible debentures - current | 38,301 | 3,406 |
Senior secured convertible note | 210,379 | 367,699 |
Onerous contracts | 5,763 | 4,763 |
Total current liabilities | 335,076 | 503,638 |
Non-current liabilities | ||
Lease liability | 1,926 | 42,155 |
Convertible debentures | 0 | 33,089 |
Deferred income tax liability | 28,846 | 136 |
Other long-term liabilities | 1,409 | 520 |
Total liabilities | 367,257 | 579,538 |
Shareholders' equity | ||
Share capital | 1,889,768 | 1,267,967 |
Share-based payment reserve | 73,657 | 69,750 |
Warrant reserve | 82,395 | 124,112 |
Contributed surplus | 90,981 | 41,290 |
Accumulated deficit | (1,841,584) | (773,993) |
Accumulated other comprehensive income | 18,475 | 1,152 |
Total equity attributable to shareholders of Hexo Corp. | 313,692 | 730,278 |
Non-controlling interest | 0 | 1,987 |
Total shareholders' equity | 313,692 | 732,265 |
Total liabilities and shareholders' equity | $ 680,949 | $ 1,311,803 |
Consolidated Statements of Net
Consolidated Statements of Net Loss and Comprehensive Loss - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Profit (loss) [abstract] | ||
Revenue from sale of goods | $ 265,418 | $ 173,081 |
Excise taxes | (74,717) | (49,583) |
Net revenue from sale of goods | 190,701 | 123,498 |
Ancillary revenue | 402 | 271 |
Net revenue | 191,103 | 123,769 |
Cost of goods sold | 282,985 | 94,703 |
Gross profit/(loss) before fair value adjustments | (91,882) | 29,066 |
Fair value component in inventory sold | 43,455 | 31,767 |
Unrealized gain on changes in fair value of biological assets | (59,665) | (51,499) |
Gross profit/(loss) | (75,672) | 48,798 |
Operating expenses | ||
General and administrative | 84,916 | 58,187 |
Selling, marketing and promotion | 22,932 | 10,348 |
Share-based compensation | 14,396 | 11,731 |
Research and development | 3,216 | 3,835 |
Depreciation of property, plant and equipment | 7,428 | 6,097 |
Amortization of intangible assets | 21,347 | 2,050 |
Restructuring costs | 15,105 | 3,283 |
Impairment of property, plant and equipment | 215,003 | 20,230 |
Impairment of intangible assets | 140,839 | 0 |
Impairment of goodwill | 375,039 | 0 |
Recognition of onerous contract | 1,000 | 0 |
Impairment of investment in associate | 57,760 | 0 |
Disposal of long-lived assets | 0 | 1,294 |
(Gain) Loss on disposal of property, plant and equipment | (2,466) | 64 |
Acquisition, integration and transaction costs | 35,538 | 17,174 |
Total expenses, by nature | 992,053 | 134,293 |
Loss from operations | (1,067,725) | (85,495) |
Interest income (expense), net | 2,112 | (30,523) |
Non-operating income (expense), net | (46,808) | 859 |
Net loss before tax | (1,112,421) | (115,159) |
Current and deferred tax recovery | 38,813 | 397 |
Net loss | (1,073,608) | (114,762) |
Other comprehensive income | ||
Foreign currency translation | 232 | (17) |
Gain on fair value due to changes in credit spread, net of tax | 17,091 | 1,169 |
Net loss and comprehensive loss | (1,056,285) | (113,610) |
Comprehensive loss attributable to: | ||
Shareholders of HEXO Corp. | (1,050,268) | (113,477) |
Non-controlling interest | (6,017) | (133) |
Total comprehensive loss | $ (1,056,285) | $ (113,610) |
Net loss and comprehensive loss per share, basic | $ (2.72) | $ (0.89) |
Net loss and comprehensive loss per share, diluted | $ (2.72) | $ (0.89) |
Weighted average number of outstanding shares | ||
Basic and diluted | 388,605,394 | 127,300,903 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - CAD ($) $ in Thousands | Share capital | Share-based payment reserve | Warrant reserves | Contributed surplus | Accumulated OCI | Accumulated deficit | Total to HEXO Corp. | Non-controlling Interest | Total |
Balance at Jul. 31, 2020 | $ 1,023,788 | $ 65,746 | $ 95,617 | $ 27,377 | $ (659,231) | $ 553,297 | $ 3,379 | $ 556,676 | |
Balance (shares) at Jul. 31, 2020 | 120,616,441 | ||||||||
June 2020 at the market offering (Shares) | 244,875 | ||||||||
May 2021 at the market offering | $ 45,257 | 45,257 | 45,257 | ||||||
May 2021 at the market offering (shares) | 6,373,926 | ||||||||
Acquisition of Zenabis Global Inc | $ 151,358 | 7,282 | 32,354 | 190,994 | (1,340) | 189,654 | |||
Acquisition of Zenabis Global Inc (shares) | 17,579,336 | ||||||||
Transaction costs | $ 3,612 | 3,612 | 3,612 | ||||||
Transaction costs (shares) | 448,639 | ||||||||
Senior secured convertible note, net | $ 29,540 | 29,540 | 29,540 | ||||||
Senior secured convertible note, net (shares) | 4,602,241 | ||||||||
Exercise of stock options | $ 3,213 | (1,983) | 1,230 | 1,230 | |||||
Exercise of stock options (shares) | 410,051 | ||||||||
Exercise of equity settled RSUs | $ 1,267 | (1,554) | (287) | (287) | |||||
Exercise of equity settled RSUs (shares) | 223,506 | ||||||||
Expiry of stock options | (12,891) | 12,891 | |||||||
Exercise of warrants | $ 9,932 | (3,126) | 6,806 | 6,806 | |||||
Exercise of warrants (shares) | 2,146,931 | ||||||||
Expiry of warrants | (733) | 733 | |||||||
Equity-settled share-based payments | 13,150 | 13,150 | 13,150 | ||||||
Other comprehensive Income | $ 1,152 | 1,152 | 1,152 | ||||||
Non-controlling interest | 289 | 289 | 289 | ||||||
Net loss | (114,762) | (114,762) | (52) | (114,814) | |||||
Balance at Jul. 31, 2021 | $ 1,267,967 | 69,750 | 124,112 | 41,290 | 1,152 | (773,993) | 730,278 | 1,987 | 732,265 |
Balance (shares) at Jul. 31, 2021 | 152,645,946 | ||||||||
At-the-Market program, net of costs | $ 27,266 | 27,266 | 27,266 | ||||||
At-the-Market program, net of costs ( In shares) | 24,290,117 | ||||||||
August 2021 public offering, net | $ 135,645 | 135,645 | 135,645 | ||||||
August 2021 public offering, net ( In Shares) | 49,080,024 | ||||||||
Business acquisitions, net | $ 230,232 | 18 | 769 | 231,019 | 231,019 | ||||
Business acquisitions, net (In Shares) | 75,073,121 | ||||||||
Senior secured convertible note, net | $ 199,818 | 199,818 | 199,818 | ||||||
Senior secured convertible note, net (shares) | 202,224,566 | ||||||||
Amended and restated senior secured convertible note, net | $ 17,900 | 17,900 | 17,900 | ||||||
Amended and restated senior secured convertible note, net ( In shares) | 67,774,266 | ||||||||
Equity line of credit | $ 3,795 | 3,795 | 3,795 | ||||||
Equity line of credit (In Shares) | 10,843,373 | ||||||||
Advisor and broker compensation | $ 6,998 | 6,998 | 6,998 | ||||||
Advisor and broker compensation (In shares) | 19,040,010 | ||||||||
Exercise of stock options | $ 147 | (104) | 43 | 43 | |||||
Exercise of stock options (shares) | 17,024 | ||||||||
Expiry of stock options | (9,513) | 9,513 | |||||||
Expiry of warrants | (42,486) | 42,486 | |||||||
Equity-settled share-based payments | 13,506 | 13,506 | 13,506 | ||||||
Other comprehensive Income | 17,323 | 17,323 | 17,323 | ||||||
Non-controlling interest | (2,308) | (2,308) | 2,308 | ||||||
Loss of control of subsidiary | 1,722 | 1,722 | |||||||
Net loss | (1,067,591) | (1,067,591) | (6,017) | (1,073,608) | |||||
Balance at Jul. 31, 2022 | $ 1,889,768 | $ 73,657 | $ 82,395 | $ 90,981 | $ 18,475 | $ (1,841,584) | $ 313,692 | $ 0 | $ 313,692 |
Balance (shares) at Jul. 31, 2022 | 600,988,447 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Operating activities | ||
Net loss before tax | $ (1,112,421) | $ (115,159) |
Items not affecting cash or presented outside of operating activities | 1,000,302 | 71,660 |
Changes in non-cash operating working capital items | (4,567) | 431 |
Cash used in operating activities | (116,686) | (43,068) |
Financing activities | ||
Proceeds from issuance of senior secured note, net | 0 | 377,433 |
Proceeds from issuance of common shares, net | 202,166 | 46,140 |
Shortfall payments and issuance fees | (334) | (4,482) |
Senior convertible note transaction costs | (8,979) | 0 |
Proceeds from the exercise of stock options | 43 | 1,230 |
Payments on RSU exercise | 0 | (287) |
Proceeds from the exercise of warrants | 0 | 6,806 |
Repayments of debt | (6,754) | (38,415) |
Interest paid on debt | (5,095) | (2,035) |
Lease payments | (6,054) | (4,835) |
Interest paid on unsecured convertible debentures | (3,211) | (3,583) |
Cash-settlements of senior secured convertible note | (22,996) | 0 |
Cash provided financing activities | 148,786 | 377,972 |
Investing activities | ||
Settlement of short-term investments | 1,241 | 0 |
Proceeds from sale of interest in BCI | 10,111 | 0 |
Net Cash inflows/(outflows) to restricted funds | 104,248 | (120,985) |
Cash outflows to cash held in escrow | 0 | (276,654) |
Cash received from escrow | 283,775 | 0 |
Cash payment on business acquisition, net of cash acquired | (381,157) | 2,804 |
Issuance of convertible debenture receivable | 0 | (19,500) |
Proceeds from sale of property, plant and equipment | 14,794 | 93 |
Acquisition of property, plant and equipment | (27,612) | (30,004) |
Purchase of intangible assets | (7,084) | (2,336) |
Investment in associates and joint ventures | (11,221) | (5,033) |
Cash derecognized on loss on control of subsidiary | (3,419) | 0 |
Cash used in investing activities | (16,324) | (451,615) |
(Decrease)/increase in cash and cash equivalents | 15,776 | (116,711) |
Cash and cash equivalents, beginning of year | 67,462 | 184,173 |
Cash and cash equivalents, end of year | $ 83,238 | $ 67,462 |
Description of Business
Description of Business | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Description Of Business [Abstract] | |
Description of Business | 1. Description of Business HEXO Corp. ("HEXO" or the "Company"), is a publicly traded corporation, incorporated in Ontario, Canada. HEXO is licensed to produce and sell cannabis and cannabis products under the Cannabis Act. The head office is located at 120 Chemin de la Rive, Gatineau, Canada. The Company's common shares are listed on the Toronto Stock Exchange ("TSX") and the National Association of Securities Dealers Automated Quotations ("Nasdaq"), both under the trading symbol "HEXO". The Company was listed on the New York Stock Exchange up to August 24, 2021, at which time the Company transferred its US listing to the Nasdaq. |
Going Concern
Going Concern | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Going Concern [Abstract] | |
Going Concern | 2. Going Concern These consolidated financial statements have been prepared using International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") applicable to a going concern, which assumes that the Company will be able to continue its operations and will be able to realize its assets and settle its liabilities in the normal course of business as they come due in the foreseeable future. During the year ended July 31, 2022, the Company reported an operating loss of $1,067,725; cash outflows from operating activities of $116,686 and an accumulated deficit of $1,841,584 and has yet to generate positive cashflows or earnings . The Company had a working capital deficiency of $63,429 and held cash and cash equivalents of $83,238 as at July 31, 2022 ($67,462 at July 31, 2021) which management expects to be sufficient to meet the Company’s expected working capital and operating cash flow needs over the next 12 months. However, the Company also has 8% convertible debentures that mature in December 2022, which will require a cash repayment of $40,140 if the Company cannot extend the terms. Furthermore, the Company remains subject to, amongst others, a minimum liquidity covenant of US$20 million under the Amended senior secured convertible note as well as a requirement to achieve Adjusted EBITDA of not less than US$1.00 for each quarter beginning in the Company’s third quarter of FY23. These circumstances lend substantial doubt as to the ability of the Company to meet its obligations as they come due and, accordingly, the appropriateness of the use of accounting principles applicable to a going concern. In recognition of these circumstances, the Company has taken the following actions: • On July 12, 2022, the Company, Tilray Brands Inc. (“Tilray”) and HT Investments MA LLC (“HTI”) amended and restated the terms of the outstanding senior secured convertible note originally issued by the Company to HTI (the “Note”). The amended and restated convertible note (the “ Amended senior secured convertible note ”) • Concurrent with the debt restructuring, the Company received a non-binding Letter of Intent for a $180 million equity purchase agreement (the “equity line of credit” or “ELOC”), from an affiliate of KAOS Capital Ltd (“KAOS”), which could provide the Company access to $5 million capital per month over a 36-month period in order to help meet debt and interest repayments under the amended and reassigned secured note. Under the terms of the ELOC, the Company is to utilize 60% of the acquired proceeds towards the debt and interest payments associated with the Amended senior secured convertible note. The Company received conditional TSX approval on May 13, 2022, replaced and superseded by subsequent approval on June 29, 2022. As of October 31, 2022, the Company has yet to file the prospectus supplement qualifying the distribution and resale by the subscriber of the Put Shares and meet the minimum share price requirement of $0.10 per common share in the first three months and $0.30 thereafter, thus has not been able to draw upon the ELOC. • On June 17, 2022, the Company’s wholly owned subsidiary Zenabis Global Inc. (“Zenabis”) as well as its direct and indirect wholly-owned subsidiaries (collectively, the “Zenabis Group”), filed a petition (the “CCAA Petition”) with the Superior Court of Québec for protection under the Companies’ Creditors Arrangement Act (“CCAA”) in order to restructure their business and financial affairs. As a result of the CCAA Petition and the resulting loss of control over the Zenabis Group, the Company deconsolidated the assets and liabilities of Zenabis and effectively de-leveraged itself from the $50,732 senior note payable previously associated with Zenabis. • On July 15, 2022, the Company commenced the termination of the captive insurance program which resulted in the release of $29,994 in cash on September 1, 2022, that had previously been restricted (Note 6). The captive insurance program was replaced by a traditional insurance program that will require annual premiums. During the second half of the fiscal year, the Company’s new management identified and commenced certain opportunities and cost savings initiatives to fundamentally realign the operating expenses and cashflows to address liquidity issues. These initiatives include: • Entering into commercial agreements with Tilray including (i) a co-manufacturing agreement providing for manufacturing services between the parties and (ii) a procurement and cost-savings agreement for efficiencies to be achieved in the business with respect to administrative services, third-party commercial services, procurement, internal distribution services on an ongoing basis through creation of an Efficiencies Committee with joint representation from HEXO and Tilray, and agreeing with Tilray to negotiate an agreement concerning international sales and supply arrangements. • Reducing of the Company’s total headcount and restructuring the organization for expected future operating and administrative needs; • Minimizing the Company’s spend on third party service providers and reducing professional fees; and • Put in a plan to liquidate the Company’s previously announced decommissioned and available for sale assets. Management believes that the above noted initiatives, combined with existing cash on hand will be sufficient to support operations over the next 12 months. Management is also currently assessing alternative refinancing and settlement options to mitigate the immediate cash payment requirement on the maturity of the 8% convertible notes. However, there can be no assurances that financing alternatives will be available or available on terms that are acceptable to the Company or that the Company’s initiatives will yield sufficient liquidity or generate positive Adjusted EBITDA, in order for the Company toto meet its financial covenant requirements, and as such, these circumstances create material uncertainties that lend substantial doubt as to the ability of the Company to meet its obligations as they come due and, accordingly, the appropriateness of the use of accounting principles applicable to a going concern. These consolidated financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if the Company were unable to realize its assets and settle its liabilities as a going concern in the normal course of operations. Such adjustments could be material. |
Basis of Preparation
Basis of Preparation | 12 Months Ended |
Jul. 31, 2022 | |
Basis Of Presentation [Abstract] | |
Basis of Preparation | 3. Basis of Preparation i. Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ('IASB"). These consolidated financial statements were approved and authorized for issue by the Board of Directors on October 31, 2022. ii. Basis of Measurement The consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments which are measured at fair value, biological assets carried at fair value less cost to sell, and assets held for sale measured at the lower of carrying amount and fair value less costs to sell as detailed in the Company's accounting policies. iii. Functional and Presentation Currency The consolidated financial statements are presented in Canadian dollars, which is the parent's functional currency. Each entity within the Company determines its own functional currency based on the primary economic environment in which it operates. Basis of Consolidation SUBSIDIARIES Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity and be exposed to, or have rights to, the variable returns from its activities. The financial statements of subsidiaries are consolidated from the date that control commences until the date that control ceases. All intercompany transactions, balances, and unrealized gains and losses are eliminated upon consolidation. Non-controlling interest ("NCI") represents the portion of equity ownership in subsidiaries not attributable to the Company's shareholders. NCI is initially measured as the proportionate share of its interest in the acquiree's identifiable net assets as at the date of acquisition and subsequently adjusted for the proportionate share of net earnings and other comprehensive income (loss) attributable to the NCI, as well as any dividends or distributions paid to the NCI. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statements of loss and comprehensive loss, statements of changes in equity and balance sheets respectively. Principal Operating Subsidiaries Jurisdiction Interest Held Principal Activity HEXO Operations Inc. Quebec, 100% To produce and sell cannabis and cannabis products under the Cannabis Act. HEXO USA Inc. Delaware, 100% To facilitate expansion into the US market. 5048963 Ontario Inc. Ontario, 100% To produce and sell cannabis and cannabis products under the Cannabis Act. JOINT ARRANGEMENTS AND ASSOCIATES Investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. Associates Associates are all entities over which the Company has significant influence but not control or joint control. This is generally the case where the Company holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting (see "Equity Method" below), after initially being recognized at cost. The following associates are significant to the Company: Significant associates Jurisdiction Interest Held Principal Activity Truss Limited Partnership ("Truss LP") Ontario, Canada 42.5% To pursue opportunities to develop non- alcoholic, cannabis infused beverages for the Canadian market. Truss CBD USA LLP Colorado USA 42.5% To explore opportunities for non-alcoholic hemp derived CBD beverages in the State of Colorado. EQUITY METHOD Under the equity method of accounting, investments in associate and joint ventures are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Company’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment. Where the Company’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Company does not recognize further losses, unless it has incurred obligations or made payments on behalf of the other entity. Unrealized gains on transactions between the Company and its associates and joint ventures are eliminated to the extent of the Company’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity-accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Company. The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in note 4(k). CHANGE IN OWNERSHIP When the Company ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognized in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss On June 17, 2022, the Company lost control of Zenabis Global Inc. and certain of its subsidiaries ("Zenabis") when it filed to commence proceedings under the Companies' Creditors Arrangement Act (CCAA) (Note 15). OPERATING SEGMENTS An operating segment is a component of the Company for which discrete financial information is available and whose operating results are regularly reviewed by the entity's chief operating decision maker (CODM), the board of directors, to make decisions about resources to be allocated to the segment and assess its performance, and that engages in business activities from which it may earn revenue and incur expenses. The Company only has one operating segment. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 12 Months Ended |
Jul. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | 4. Significant Accounting Policies and Pronouncements (a) CASH AND CASH EQUIVALENTS Cash and cash equivalents are comprised of cash and highly liquid investments that are readily convertible into known amounts of cash with original maturities of three months or less. (b) RESTRICTED FUNDS Restricted funds represent cash that is pledged as collateral or guarantees for certain of the Company's projects, obligations, and agreements. Funds related to the Company’s captive insurance program are included in restricted funds. Captive Insurance is coverage for the Company’s directors and officers that has been secured through a Captive Cell program (“the Captive Program”). The Captive Program was affected by entering into a participation agreement with a registered insurer for the purposes of holding and managing the Company’s coverage funds through a separate cell account (the “Cell Captive”). Captive Program funds are held as cash in the Cell Captive with the possibility of reinvestment into short-term investments and/or marketable securities in the future. The Company recognizes gains and losses from, interest, foreign exchange activity and/or fair market value adjustments through the Statement of Net Loss and Comprehensive Loss. The Captive Program was discontinued subsequent to July 31, 2022. (c) CASH HELD IN ESCROW Cash held in escrow is cash that is held by independent escrow agents to fund future acquisitions but restricted by certain release conditions. (d) TRADE RECEIVABLES Trade receivables are recognized initially at the amount of consideration that is unconditional, unless they contain significant financing components when they are recognized at fair value. Trade receivables are subsequently measured at amortized cost using the effective interest method, less allowance for expected credit losses, which the Company estimates on the basis of historical collection rates and observable changes in credit risk. (e) COMMODITY TAX RECOVERABLES & OTHER RECEIVABLES Commodity tax recoverable and other receivables are initially measured at fair value and subsequently measured at amortized cost, less any provisions for impairment. (f) BIOLOGICAL ASSETS The Company measures biological assets consisting of cannabis plants using the income approach at fair value less costs to sell at the point of harvest, which becomes the basis for the cost of related inventories after harvest. The Company capitalizes all the direct and indirect costs as incurred related to the biological transformation of the biological assets between the point of initial recognition and the point of harvest including labour related costs (including share-based compensation), grow consumables, materials, utilities, facilities costs, depreciation, overhead, quality and testing costs. The identified capitalized direct and indirect costs of biological assets are subsequently recorded within the line item 'costs of goods sold' on the statement of loss and comprehensive loss in the period that the related product is sold. Unrealized gains or losses arising from changes in fair value less cost to sell during the period are included in the results of operations and presented on a separate line of statement of comprehensive loss of the related period. (g) INVENTORY Inventory is valued at the lower of cost and net realizable value. Cost is determined using the weighted average method. Inventories of harvested cannabis ("Dried cannabis") are transferred from biological assets at their fair value at harvest, which becomes the initial deemed cost of the inventory. Any subsequent post-harvest costs are capitalized to inventory to the extent that cost is less than net realizable value. Subsequent costs include materials, overhead, depreciation, amortization, and labour related costs (including share-based compensation) involved in packaging and quality assurance. The identified capitalized direct and indirect costs related to inventory are subsequently recorded within 'cost of goods sold' on the statement of loss and comprehensive loss at the time the product is sold, with the exclusion of realized fair value amounts included in inventory sold which are recorded as a separate line within gross profit. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Packaging and supplies are initially valued at cost and subsequently at the lower of cost and net realizable value. (h) PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is measured at cost less accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. Construction in progress is transferred to a depreciable asset class property, plant and equipment when the assets are available for use and depreciation of the assets commences at that point. Depreciation is provided using the following terms and methods: Asset Method Term Land Not depreciated No term Buildings Straight line 5 to 20 years Leasehold improvements Straight line lease term Furniture and equipment Straight line 5 years Cultivation and production equipment Straight line 5 to 20 years Vehicles Straight line 5 years Computers Straight line 3 years An asset's residual value and useful life are reviewed at each reporting date and adjusted if appropriate. When parts of an item of equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Gains and losses on disposal of an item of equipment are determined by comparing the proceeds from disposal with the carrying amount of the equipment and are recognized in profit or loss. (i) INTANGIBLE ASSETS Finite life intangible assets are measured at cost less accumulated amortization and accumulated impairment losses. Amortization is provided on a straight-line basis over the following terms: Asset Method Term Domain names Straight line 10 years Health Canada licenses Straight line 20 years Software Straight line 3-5 years Patents/Production Know-How Straight line 6-20 years Brands Straight line 3 years The estimated useful life is reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Research expenditure and development expenditure that do not meet the recognition criteria for intangible assets are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. The Company holds no intangible assets with an indefinite life. (j) GOODWILL Goodwill is not amortized but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units ("CGUs") for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal management purposes, being the Company's single operating segment. (k) IMPAIRMENT OF NON-FINANCIAL ASSETS Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset's or CGU's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal ("FVLCD") and value in use ("VIU"). For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (CGUs). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. The estimated useful life is reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Research expenditure and development expenditure that do not meet the recognition criteria for intangible assets are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. In assessing the VIU, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money to the Company and the risks specific to the asset. In determining FVLCD an appropriate valuation model is used. Where the carrying amount of a CGU exceeds its recoverable amount, the CGU is considered impaired and is written down to its recoverable amount. Any impairment loss is recorded in earnings and previously recognized impairment losses (excluding the impairment of Goodwill) are reversed or partially reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognized, in which case, the carrying amount of the asset is increased to its recoverable amount. The new carrying amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized. (l) BUSINESS ACQUISITIONS The acquisition method is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. Operating results are included in the consolidated financial statements as of the acquisition date. The consideration transferred for the acquisition comprises the: • • • • • Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, with the exceptions of leases under IFRS 16 and deferred taxes. The Company recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest's proportionate share of the acquired entity's net identifiable assets. The Company has one year from the acquisition date to finalize the estimates and assumptions that support the finalized fair value analysis and purchase price allocation. Until this time, these values reported are subject to change. Changes to fair values and allocations are retrospectively adjusted in subsequent periods. Acquisition-related costs are expensed as incurred and are presented under 'Acquisition and transaction costs' in the consolidated statements of loss and comprehensive loss. The excess of the consideration transferred, amount of any non-controlling interest in the acquired entity, and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in profit or loss as a bargain purchase. Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity's incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value, with changes in fair value recognized in profit or loss. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in profit or loss. (m) NON-CURRENT ASSETS (OR DISPOSAL GROUPS) HELD FOR SALE Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and contractual rights under insurance contracts, which are specifically exempt from this requirement. An impairment loss is recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognized for any subsequent increases in fair value less costs of disposal of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset (or disposal group) is recognized at the date of derecognition. Non-current assets (including those part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized. Non-current assets classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet. (n) ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. Accounts payable and accrued liabilities are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method. (o) REVENUE RECOGNITION Revenue from the direct sale of cannabis to customers for a fixed price is recognized when the Company transfers the control of the good(s) to the customer upon delivery and acceptance by the customer. The Company recognizes revenue in an amount that reflects the consideration which the Company expects to receive taking into account the impact which may arise from any rights of return on sales, price concessions or similar obligations. Net revenue is presented net of taxes, estimated returns, allowances and discounts. Canada Revenue Agency ("CRA") levies excise taxes on the sale of medical and adult-us cannabis products. The Company becomes liable for these excise duties when cannabis products are delivered to the customer. The excise taxes payable is the higher of (i) a flat-rate duty which is imposed when a cannabis product is packaged, and (ii) an ad valorem duty that is imposed when a cannabis product is delivered to the customer. Effective May 1, 2019, excise tax calculated on edible cannabis products, cannabis extracts and cannabis topicals will prospectively be calculated as a flat rate based on the quantity of total tetrahydrocannabinol (THC) contained in the final product. There were no changes in the legislation in calculating excise taxes for fresh cannabis, dried cannabis, seeds and plants. Net revenue from sale of goods, as presented on the statement of net loss, represents revenue from the sale of goods less applicable excise taxes. (p) COST OF GOODS SOLD Cost of goods sold includes cost of inventory expensed, packaging costs, shipping costs and related labour. (q) INCOME TAXES The income tax expense or recovery for the period is the tax payable on the current period's taxable income, based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax expense or recovery is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. (r) SHARE-BASED COMPENSATION The Company has an employee stock option plan. The Company measures equity settled share-based payments based on their fair value at the grant date and recognizes compensation expense over the vesting period based on the Company's estimate of equity instruments that will eventually vest. Forfeitures are adjusted for on an actual basis. The impact of the revision of the original estimate is recognized in profit or loss such that the cumulative expense reflects the revised estimate. For stock options granted to non-employees the compensation expense is measured at the fair value of goods and services received (s) RESTRICTED SHARE UNITS ("RSU's") RSUs are cash or equity settled share-based payments granted to certain employees, directors and executives within the Company. RSUs are measured at their initial fair value on the date of the grant utilizing the Black- Scholes Merton model. The fair value of cash-settled RSUs is revalued at each period end and is recognized as share-based compensation expense over the vesting period with a corresponding adjustment to the liability. Upon the settlement of cash based RSUs, which are valued at the market value at the time of exercise, the related liability is transferred to share capital. The fair value of equity-settled RSUs are recognized in the share-based reserve at the grant date. Upon the settlement of equity-based payments, RSUs are settled in the form of common shares and the related share-based reserve is transferred to share capital. RSUs may be exercised for cash, equity or a combination of both at the discretion of the holder once vested as per the terms of the award grant. Amounts recorded for forfeited RSUs are transferred to contributed surplus in the year of forfeiture or expiry. (t) DEFERRED SHARE UNITS ("DSU's") DSUs are cash or equity settled share-based payments granted to certain of the Company's directors. DSUs do not possess a vesting period but are rather dependent upon on certain conditions and/or events in order to vest. DSUs are measured at the market value on the date of grant. The fair value of cash-settled DSUs ais revalued at each period end and is recognized as share-based compensation over the period with a corresponding adjustment to the liability. Upon the settlement of cash-based DSUs, which are valued at the market value at the time of exercise, the related liability is transferred to share capital. The fair value of any equity-settled DSUs is to be recognized in the share-based reserve at the grant date. Upon the settlement of equity-based payments, DSUs are settled in the form of common shares and the related share-based reserve is transferred to share capital. DSUs may be exercised for cash, equity or a combination of both at the discretion of the holder once vested as per the terms of the award grant. Amounts recorded for forfeited DSUs are transferred to contributed surplus in the year of forfeiture or expiry. (u) LOSS PER SHARE Loss per common share represents loss for the period attributable to common shareholders divided by the weighted average number of common shares outstanding during the year. Diluted loss per common share is calculated by dividing the applicable loss for the year by the sum of the weighted average number of common shares outstanding and all additional common shares that would have been outstanding if potentially dilutive common shares had been issued during the year. The calculation of diluted loss per share excludes the effects of various conversions and exercise of options and warrants that would be anti-dilutive. (v) FINANCIAL INSTRUMENTS Financial assets and liabilities are recognized when the Company becomes a party to the contractual provision of the respective instrument. All financial assets and financial liabilities are initially measured at fair value, net of transaction costs, except for financial instruments classified as fair value through profit or loss ("FVTPL"), where transaction costs are recognized immediately in profit or loss. The Company classifies its financial assets in the following measurement categories: • • The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows. The Company has made the following classifications: IFRS 9 Classification Financial assets Cash and cash equivalents Amortized cost Restricted funds Amortized cost Trade receivables Amortized cost Convertible debenture receivable FVTPL Long term investments FVTPL Financial liabilities Accounts payable and accrued liabilities Amortized cost Warrant liabilities FVTPL Convertible debentures Amortized cost Senior secured convertible note FVTPL Senior notes payable Amortized cost Lease liabilities Amortized cost Loans and borrowings Amortized cost (i) Fair Value Through Profit or Loss ("FVTPL") Financial Assets Financial assets classified and measured at FVTPL are those assets that do not meet the criteria to be classified at amortized cost or at FVOCI. This category includes debt instruments whose cash flow characteristics are not solely payments of principal and interest ("SPPI") or are not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows and sell the financial asset. (ii) Financial assets at amortized cost are non-derivative financial assets which are held within a business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. An amortized cost financial asset is initially measured at fair value, including transaction costs and subsequently at amortized cost using the effective interest rate. (iii) Financial assets, other than those classified at fair value through profit and loss, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. (iv) Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities. Financial liabilities mandatory classified at FVTPL, such derivatives, are stated at fair value, with changes being recognized through the statements of net loss. Other financial liabilities are initially measured at fair value, net of transaction costs, and are subsequently measured at amortized cost using the effective interest method. The Senior secured convertible note (including the Amended senior secured convertible note) (the “Note”) was issued in currency other than the functional currency of the Company is classified entirely as liabilities. As the Note contains equity and non-equity embedded derivatives, it is designated at fair value through profit or loss on initial recognition when embedded features are not separated. The component of fair value changes relating to the Company’s own credit risk is recognized in other comprehensive loss. Amounts recorded in other comprehensive loss related to credit risk are not subject to recycling in profit or loss but are transferred to retained earnings when realized. Financial liabilities are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any noncash assets transferred or liabilities assumed, is recognized in the statement of net loss as other income (loss). Financial liabilities are classified as current when the Company does not retain an unconditional right to defer settlement, due to a conversion feature or otherwise, beyond 12 months from the reporting date. (v) Derivatives Derivatives are initially measured at fair value and are subsequently measured at FVTPL. If the transaction price does not equal to fair value at the point of initial recognition, management measures the fair value of each component of the investment and any unrealized gains or losses at inception are either recognized in profit or loss or initially unrecognized and recognized over the term of the investment, depending on whether the valuation inputs are based on observable market data. The resulting unrealized gain or loss at inception and subsequent changes in fair value are recognized in profit or loss for the period. Transaction costs, which are directly attributable to the acquisition of the investment, are expensed as incurred. (vi) The component parts of compound instruments (convertible debentures) issued by the Company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. A conversion option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Company’s own equity instruments is an equity instrument. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest rate method until extinguished upon conversion or at the instrument's maturity date. The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in equity and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity. No gain or loss is recognized in profit or loss upon conversion or expiration of the conversion option. Transaction costs that relate to the issuance of the convertible debentures are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognized directly in equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component and are amortized over the term of the convertible debentures using the effective interest method. For compound instruments with non-equity derivatives, the fair value of the embedded derivative is determined first based on the contractual terms, and the initial carrying amount of the host instrument is the residual amount after separating the embedded derivative. Fair value on initial recognition Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly observable or estimated using another valuation technique. If, after considering the terms of the transaction, the Company determines that the fair value of a financial instrument at initial recognition differs from the transaction price, the difference is recognized as a gain or loss in the statement of loss only if fair value is evidenced by quoted prices or based on a valuation technique that uses only data from observable markets. In all other cases, the difference is deferred and recognized systematically to the extent that it arises from a change in a factor (including time) that market participants would consider in setting a price. Any subsequent measurement of the instrument excludes the balance of the deferred day one gain or loss. (w) FOREIGN CURRENCY TRANSLATION Foreign currency transactions are translated into Canadian dollars at exchange rates in effect on the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the consolidated statement of financial position date are translated to Canadian dollars at the foreign exchange rate applicable at that date. Realized and unrealized exchange gains and losses are recognized through profit or loss. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Foreign Operations The assets and liabilities of foreign operations are translated to the presentation currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to the presentation currency using average exchange rates for the month during which the transactions occurred. Foreign currency differences are recognized in Other Comprehensive Loss in the Accumulated Other Comprehensive Loss account. (x) SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Significant Accounting Judgements Impairment of non-financial assets Non-financial asset impairment tests require the allocation of assets to CGUs or CGU groups, which requires significant judgement and interpretation with respect to the integration between assets, the existence of active markets, similar exposure to market risks, shared resources and assets, and the way in which management monitors the operations. Non-financial asset impairment tests require the determ |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Jul. 31, 2022 | |
Categories of current financial assets [abstract] | |
Cash and Cash Equivalents | 5. Cash and Cash Equivalents Interest rate July 31, 2022 July 31, 2021 $ $ Operating cash - 75,819 31,702 High interest savings accounts 1.80% 7,419 35,760 Cash and cash equivalents 83,238 67,462 |
Restricted Funds
Restricted Funds | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Restricted Cash [Abstract] | |
Restricted Funds | 6. Restricted Funds July 31, 2022 July 31, 2021 $ $ Letters of credit, collateral and guarantees for purchases 2,230 2,552 Restricted cash under terms of the Senior Secured Convertible Note (Note 19) - 99,696 Cash restricted in captive insurance subsidiary 29,994 29,998 Total 32,224 132,246 The Company’s restricted cash had been held for the settlement of the senior note payable, acquired from the business acquisition of Zenabis (Note 22), as contractually obligated under the terms of the senior secured convertible note (Note 19). On July 12, 2022, under the Senior secured convertible notes amending agreement (Note 19), the restricted cash under the terms of the Senior secured convertible note were unrestricted and made available for operational use upon the notes. On September 1, 2022, the Company unrestricted the cash previously held in the captive insurance subsidiary. |
Cash Held in Escrow
Cash Held in Escrow | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure For Cash Held In Escrow [Abstract] | |
Cash Held in Escrow | 7. Cash Held in Escrow On May 27, 2021, the Company issued US$360 million in a senior secured convertible note at a purchase price of US$327.6 million (Note 19). Under the senior secured convertible note agreement, US$229.32 million of the proceeds were immediately placed into an escrow account. On August 30, 2021, the Cash held in escrow was used, in full, towards funding the acquisition of all of the outstanding shares of the entities that carry on the business of Redecan (Note 15). |
Commodity Taxes Recoverable and
Commodity Taxes Recoverable and Other Receivables | 12 Months Ended |
Jul. 31, 2022 | |
Commodity Taxes Recoverable And Other Receivables [Abstract] | |
Commodity Taxes Recoverable and Other Receivables | 8. Commodity Taxes Recoverable and Other Receivables July 31, 2022 July 31, 2021 $ $ Commodity taxes recoverable 7,411 56 Lease receivable - current 1 - 107 Cash receivable on settlement of marketable securities - 2,698 Loan receivable 2 - 5,000 Other receivables - 5,688 Total 7,411 13,549 1 2 |
Inventory
Inventory | 12 Months Ended |
Jul. 31, 2022 | |
Classes of current inventories [abstract] | |
Inventory | 9. As at July 31, 2022 Capitalized Biological asset fair cost value adjustment Total Dried cannabis $ 30,636 $ 23,600 $ 54,236 Purchased dried cannabis 662 – 662 Extracts 3,928 – 3,928 Purchased extracts 478 – 478 Packaging and supplies 7,105 – 7,105 $ 42,809 $ 23,600 $ 66,409 As at July 31, 2021 Capitalized Biological asset fair cost value adjustment Total Dried cannabis $ 81,784 $ 24,257 $ 106,041 Purchased dried cannabis 1,754 – 1,754 Extracts 11,945 4,411 16,356 Purchased extracts 2,247 – 2,247 Packaging and supplies 8,929 – 8,929 $ 106,659 $ 28,668 $ 135,327 T he Company recognizes the costs (capitalized cost and biological asset fair value adjustment) of harvested cannabis inventory expensed in two separate lines on the consolidated statement of net loss: (i) Write downs of inventory to the net realizable v alue of $104,038 (July 31, 2021 – $4,470); and Write-offs of inventory of $14,297 (July 31, 2021 – $2,182) which relate to the impairment of the Keystone Isolation Technology extraction capital project (intended to utilize inventory during the commissioning phase), destroyed and unsellable inventory and cultivation facility shutdowns; and Reversal of impairment of $4,299 (July 31, 2021 – $1,543) to its net realizable value. (ii) Total depreciation capitalized in inventory in the year ended July 31, 2022, was $23,715 (July 31, 2021 – $15,677). Total share-based compensation capitalized in inventory in the year ended July 31, 2022, was $nil (July 31, 2021 – $1,505). |
Biological Assets
Biological Assets | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of detailed information about biological assets [abstract] | |
Biological Assets | 10. The Company's biological assets consist of cannabis plants throughout the growth cycle, from mother plants to plants in propagation, vegetative and flowering stages. The changes in the carrying value of biological assets are as follows: For the years ended July 31, 2022 July 31, 2021 $ $ Balance, beginning of year 14,284 7,571 Acquired on business combination 8,352 8,892 Production costs capitalized 62,489 36,156 Net increase in fair value due to biological transformation and estimates 59,665 51,499 Harvested cannabis transferred to inventory (119,432 ) (89,834 ) Disposal of biological assets (3,086 ) - Derecognized on loss of control of subsidiary (Note 15) (6,366 ) - Balance, end of year 15,906 14,284 The valuation of biological assets is based on an income approach (Level 3) in which the fair value at the point of harvesting is estimated based on selling prices less the costs to sell. For in process biological assets (growing plants), the fair value at the point of harvest is adjusted based on the stage of growth at period-end. Harvested cannabis is transferred from biological assets at their fair value at harvest. During the year ended July 31, 2022, the Company disposed of $3,086 (July 31, 2021 - $nil) of biological assets due to the closure of a cultivation facility as well as damaged plants due to a heating issue. The inputs and assumptions used in determining the fair value of cannabis plants are as follows: yield per plant; stage of growth percentage, estimated as age of plant from date of harvest as a percentage of total days in an average growing cycle, as applied to the estimated total fair value per gram (less fulfilment costs) to arrive at an in-process fair value for estimated biological assets to be harvested; selling price per gram; post-harvest cost (cost to complete and cost to sell) per gram; and destruction/wastage of plants during the harvesting and processing process. The table below summarizes the significant inputs and assumptions used in the fair value model, their weighted average range of value and sensitivity analysis: Significant inputs and assumptions Input values An increase or decrease of 5% applied to the July 31, 2022 July 31, 2021 July 31, 2022 July 31, 2021 Weighted average selling price $2.73 per dried gram $3.05 per dried gram $1,190 $746 Yield per plant 82-1,307 grams per plant 1 24-116 grams per plant $803 $460 Post-harvest cost $0.19-$0.63 per dried gram $0.67-$0.84 per dried gram $303 $636 1 |
Investments in Associates & Joi
Investments in Associates & Joint Ventures | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Associate And Joint Ventures [Abstract] | |
Investments in Associates & Joint Ventures | 11. July 31, 2022 July 31, 2021 Truss LP Other Total Truss LP Other Total $ $ $ $ $ $ Opening Balance 72,873 1,806 74,679 74,966 1,340 76,306 Cash contributed to investment 8,500 2,721 11,221 4,250 783 5,033 Disposal - (984 ) (984 ) - - - Share of net (loss) (7,613 ) (1,544 ) (9,157 ) (6,343 ) (162 ) (6,505 ) Impairment (57,760 ) - (57,760 ) - - - Foreign exchange loss through OCI - - - - (155 ) (155 ) Ending Balance 16,000 1,999 17,999 72,873 1,806 74,679 Truss LP The Truss LP was formed between the Company and Molson Coors Canada (the "Partner") and is a standalone entity, incorporated in Canada, with its own board of directors and an independent management team. The Partner holds 57,500 common shares representing 57.5% controlling interest in Truss LP with the Company holding 42,500 common shares and representing the remaining 42.5%. Truss LP is a private limited partnership and its principal operating activities consist of pursuing opportunities to develop non-alcoholic, cannabis-infused beverages. On October 31, 2021, the Company noted indicators of impairment related to the Truss LP investment, notably, a reduced financial outlook and an additional requirement for capital to sustain operations. The Company tested the investment for impairment and recorded an impairment loss as outlined below. The recoverable amount was based on the estimated fair value less costs of disposal. The fair value less costs of disposal was estimated utilizing an income based discounted cash flows ("DCF") analysis. As a result, an impairment loss of $26,925 was recorded. The significant assumptions in the DCF analysis were as follows: i. ii. iii. On July 31, 2022, the Company identified additional indicators of impairment related to the Truss LP investment, as a result of a further reduction in the financial outlook predicated on budget to actual trends and certain market data. The Company tested the investment for impairment and recorded an impairment loss as outlined below. The recoverable amount was based on the estimated fair value less costs of disposal, which was determined based on an income approach using discounted cash flows (“DCF”). In addition, to further corroborate the DCF valuation, a secondary valuation was completed using adjusted net asset method determined by measuring the underlying assets and liabilities on the balance sheet of Truss on the measurement date to their respective fair value. The tangible non-financial assets are adjusted to reflect their current replacement cost using comparable market data adjusted for economical obsolescence. As a result, an additional impairment loss of $30,835 was recorded. The significant assumption in the depreciated replacement cost value of assets approach was the estimated market recoverability rate. The Company utilized a rate of 53%. If all other assumptions were held constant, a 1% decrease in the market recoverability rate would result in an impairment loss of $300. Truss LP As at July 31, 2022 July 31, 2021 Statement of Financial Position $ $ Cash and cash equivalents 12,640 6,757 Other current assets 11,562 7,867 Non- current assets 63,305 67,766 Current liabilities 8,145 11,112 Non-current liabilities 8,420 8,667 For the year ended July 31, 2022 July 31, 2021 Statement of Comprehensive Loss Revenue 13,516 6,498 Operating expenses excluding depreciation and amortization (16,265 ) (14,261 ) Depreciation and amortization (6,486 ) (4,884 ) Other expenses - - Loss from operations (17,289 ) (14,643 ) Other income (64 ) 130 Interest expenses (560 ) (412 ) Income tax expenses - - Total comprehensive loss (17,913 ) (14,925 ) The following table is a reconciliation of summarized financial information of the Company's' significant investment in Truss LP to the carrying amount of the investment for the years ended July 31, 2022 and July 31, 2021. For the year ended July 31, 2022 July 31, 2021 $ $ Opening net assets 70,039 74,964 Acquisition of associate/capital calls 20,000 10,000 Total comprehensive loss (17,913 ) (14,925 ) Closing net assets 72,126 70,039 Interest in associate 42.5% 42.5% Interest in associate value 30,654 29,767 Fair value of warrant consideration 42,386 42,386 Capitalized transaction costs 720 720 Impairment loss (57,760 ) - Total interest in associate value 16,000 72,873 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jul. 31, 2022 | |
Property, plant and equipment [abstract] | |
Property, Plant and Equipment | 12. Cost Land Buildings Leasehold Cultivation Furniture, Construction Right-of- Total $ $ $ $ $ $ $ $ At July 31, 2020 1,656 164,949 24,439 33,461 18,871 98,135 24,405 365,916 Business acquisition 1,100 95,788 - 6,154 8,578 395 17,059 129,074 Additions - 1,213 63 2,284 294 16,960 - 20,814 Disposals - 1 - (67 ) - - (1,055 ) (1,121 ) Transfers - 3,951 17,649 884 1,388 (23,544 ) - 328 At July 31, 2021 2,756 265,902 42,151 42,716 29,131 91,946 40,409 515,011 Business acquisitions 8,941 59,856 545 58,063 2,053 4,076 1,993 135,527 Additions 61 602 (36 ) 15,511 141 11,333 - 27,612 Disposals - (971 ) (587 ) (3,946 ) (3,577 ) (223 ) (20,460 ) (29,764 ) Transfers (307 ) (523 ) 546 (2,106 ) (3,070 ) (1,033 ) (350 ) (6,843 ) Held for sale (1,766 ) (11,967 ) - (7,944 ) (3,151 ) (393 ) - (25,221 ) Loss of control 1 (592 ) (84,865 ) - (8,428 ) (3,013 ) 411 (17,059 ) (113,546 ) At July 31, 2022 9,093 228,034 42,619 93,866 18,514 106,117 4,533 502,776 Accumulated depreciation and impairments At July 31, 2020 307 13,712 1,009 8,691 4,141 48,990 3,700 80,550 Depreciation - 7,981 2,173 5,145 4,229 - 2,246 21,774 Transfers - (110 ) (16 ) (78 ) (277 ) - - (481 ) Disposals - - - - - - (964 ) (964 ) Impairments - 160 85 2,104 61 - 17,820 20,230 At July 31, 2021 307 21,743 3,251 15,862 8,154 48,990 22,802 121,109 Depreciation - 11,143 2,028 11,931 4,245 - 1,796 31,143 Transfers (307 ) (329 ) (5 ) (4,328 ) 138 (5,405 ) (350 ) (10,586 ) Disposals - - (498 ) (260 ) (612 ) - (20,300 ) (21,670 ) Impairments 462 89,581 37,084 11,470 5,698 48,746 15,524 208,565 Held for sale - (1,868 ) - (2,188 ) (884 ) - - (4,940 ) Loss of control 1 (462 ) (79,602 ) - (13,933 ) 153 4,192 (17,059 ) (106,711 ) At July 31, 2022 - 40,668 41,860 18,554 16,892 96,523 2,413 216,910 Net book value At July 31, 2020 1,349 151,237 23,430 24,770 14,730 49,145 20,705 285,366 At July 31, 2021 2,449 244,159 38,900 26,854 20,977 42,956 17,607 393,902 At July 31, 2022 9,093 187,366 759 75,312 1,622 9,594 2,120 285,866 1 During the year ended July 31, 2022, the Company capitalized $23,715 (July 31, 2021 - $15,677) of depreciation to inventory. During the year ended July 31, 2022, depreciation expensed to the consolidated statement of loss and comprehensive loss was $7,428 (July 31, 2021 - $6,097). Capitalized borrowing costs to buildings in the year ended July 31, 2022, was $nil (July 31, 2021 - $1,269 at an average rate of 5.6%). Transfers from construction in progress during the year reflect the activation of an asset's useful life, transitioning from construction in progress to the appropriate depreciable asset class . Impairments during the year ended July 31, 2022 On October 31, 2021, the Company identified impairment to its Keystone Isolation Technology (KIT) capital project which was suspended. The KIT capital project related to the development and commissioning of new cannabis extraction and isolation equipment. During the year ended July 31, 2022, the Company recognized impairments on the associated equipment for an impairment loss of $13,377. On January 31, 2022, indicators of impairment were identified as a result of significant revisions to management's own forecasts of future net cash inflows and earnings from previous budgets and forecasts. As a result, certain cultivation facilities, including the cultivation and manufacturing facilities of Zenabis, as well as the related equipment and capital projects were considered redundant and tested for impairment at the asset level resulting in an impairment loss of $98,022 being recorded. During the three months ended April 30, 2022, management announced the planned cessation of operations at the leased, centralized manufacturing and processing facility, Belleville and a s at July 31, 2022, the Company has terminated operations at the Belleville facility and has migrated to other existing facilities. As a result of the above, the Company recognized impairment losses of $87,412 . Certain identified cultivation equipment was also transferred to alternative sites. The leasehold improvements, remaining construction in progress, and redundant equipment has been impaired to their recoverable amounts. In addition, impairment losses were identified for the Atholville Facility. The recoverable amount was determined by reference to fair value less costs of disposal using a market approach. The market approach was based on comparable transactions for similar assets, which is categorized within Level 2 of the fair value hierarchy. Additional impairment losses were recorded for intangible assets related to the cultivation and processing licenses held for the Atholville Facility (Note 14). Impairments during the year ended July 31, 2021 During the year ended July 31, 2021, the Company impaired $17,820 of right of use assets related to the Company's Langley and Montreal facilities. Subsequent, to the acquisition of Zenabis (Note 15), the Company in order to recognize the synergies, assessed the output capacity of its production and cultivation facilities and made the decision to exit the Langley lease. As a result, the carrying amount of the associated right of use asset of $17,059 was impaired as the Company has assessed the recoverable amount at $nil. The recoverable amount of the assets was determined to be nil, as the assets have no continuing use to the Company. The associated lease liabilities remained recognized as at July 31, 2021 (Note 21). During the year ended July 31, 2021, the Company identified impairments of certain packaging equipment that was no longer expected to be used. As a result of this, impairment losses of $2,104 were recorded. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Jul. 31, 2022 | |
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners [abstract] | |
Assets Held for Sale | 13. Net book value Land Buildings Cultivation Furniture, Construction Total $ $ $ $ $ $ At July 31, 2021 - - - - - - Business acquisition (Note 15) 1,873 366 274 - - 2,513 Additions 1,765 10,100 5,756 2,267 393 20,281 Disposals (974 ) (3,246 ) - (14 ) - (4,234 ) Impairment loss (794 ) - (5,185 ) (379 ) (80 ) (6,438 ) Loss of control of subsidiary (Note 15) (508 ) (5,938 ) - (241 ) (313 ) (7,001 ) At July 31, 2022 1,362 1,281 845 1,633 - 5,121 On September 1, 2021, the Company acquired 48North Cannabis Corp. and recognized the Good Farm cultivation facility as held for sale on the acquisition date. The facility was sold during the year ended July 31, 2022. Throughout the year ended July 31, 2022, management completed a strategic review of its total cultivation capacity and made the decision to exit the Good House, Kirkland Lake, Brantford R&D, and Stellarton facilities and dispose of certain associated equipment. As such, these assets have been classified as held for sale on the statement of financial position as of July 31, 2022. The assets have been recognized at their individual recoverable amounts. Management assessed the related assets for further impairment upon classification as assets held for sale and determined that no further impairment losses were required to be recorded as the carrying amounts are expected to be recovered through sale. The Atholville facility and Stellarton manufacturing facility have been derecognized due to the loss of control of Zenabis on June 17, 2022 (Note 15). |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jul. 31, 2022 | |
Changes in intangible assets other than goodwill [abstract] | |
Intangible Assets | 14. Cost Cultivating and Brands Software Domain Patents/ Total $ $ $ $ $ $ At July 31, 2020 116,433 8,440 3,710 585 1,933 131,101 Additions - - 1,546 - 790 2,336 Business acquisition 28,914 5,400 - - - 34,314 Disposals - - (872 ) - - (872 ) At July 31, 2021 145,347 13,840 4,384 585 2,723 166,879 Additions - - 6,494 - 590 7,084 Business acquisitions 73,079 97,200 1,221 - 27,337 198,837 Loss of control (28,914 ) (5,400 ) - - - (34,314 ) At July 31, 2022 189,512 105,640 12,099 585 30,650 338,486 Accumulated amortization and impairments At July 31, 2020 110,957 2,000 1,966 125 45 115,093 Amortization 765 170 922 59 134 2,050 Disposals - - (872 ) - - (872 ) At July 31, 2021 111,722 2,170 2,016 184 179 116,271 Amortization 6,561 7,862 3,527 59 3,338 21,347 Impairment 72,950 56,450 - - 11,439 140,839 Loss of control (28,914 ) (5,400 ) - - - (34,314 ) At July 31, 2022 162,319 61,082 5,543 243 14,956 244,143 Net book value At July 31, 2020 5,476 6,440 1,744 460 1,888 16,008 At July 31, 2021 33,625 11,670 2,368 401 2,544 50,608 At July 31, 2022 27,193 44,558 6,556 342 15,694 94,343 Research and development expenses in the year ended July 31, 2022 were $3,216 (July 31, 2021 - $3,835). During the year ended July 31, 2022, the Company adjusted the estimated useful life of its previously indefinite life brand to a three-year period based on new available information such as market comparatives and market sales data. impairment On January 31, 2022, indicators of impairment were identified as a result of adverse changes in the Canadian Cannabis market experienced throughout the three months ended January 31, 2022, which resulted in significant revisions to management's own forecasts of future net cash inflows and earnings from previous budgets and forecasts. As a result, the Company recorded aggregate impairment losses of $140,839 on intangible assets within the Canadian Cannabis CGU. The following details the impairment of the applicable assets to their individual recoverable amounts: The Company has valued the cultivation and processing licenses associated with the acquired facilities of Redecan (Note 15), using a fair value less costs of disposal model which estimates the value of the license as the difference between the present value of the future cash flows of the facility with-or-without a license in place, as at January 31, 2022 using management's revised estimates of expected future cash flows and gross margins. The recoverable amount was $26,556, requiring an impairment loss of $45,000. If all other assumptions were held constant, and the forecasted gross margin rate was decreased by 10%, the recoverable amount of the cultivation and processing license would decrease by $6,771. In the with-or-without approach, reducing the estimated time to obtain a license and complete cultivation and production ramp up by six months would reduce the recoverable amount of the license by $8,066. In connection with the impairment loss recorded the Atholville facility (Note 12), the Company recorded an impairment loss of $27,950 relating to cultivation and processing licenses associated with the facility. The Atholville Facility was part of the Zenabis Group and the remaining carrying value was de-recognized as part of the accounting for loss of control (Note 15). The Company revalued the brand asset acquired in the Redecan transaction (Note 15) as at January 31, 2022, using management's revised estimates of expected future revenues. Recoverable amount was determined to be $47,000, requiring an impairment loss of $43,754. Recoverable amount was determined with reference to fair value less cost of disposal, which utilized a relief from royalty approach model (Level 3). If all other assumptions were held constant, and the forecasted royalty rate was decreased by 10%, the recoverable amount of the brand would decrease by $5,061. The Company also impaired certain other acquired brands to their recoverable amounts, resulting in an impairment loss of $12,697. The Company has valued the production Know-How asset, acquired from the Redecan transaction (Note 15) as at January 31, 2022, using management's revised estimates of expected future cash flows and related gross margins (Note 15). The recoverable amount was determined to be $14,000, requiring an impairment loss of $11,438. Recoverable amount was determined with reference to fair value less costs of disposal using a with-or-without approach based on an income based DCF valuation model (Level 3). The model estimates the value of the asset as the difference between the present value of the future cash flows of pre-rolls, with-or-without the unique Know-how as at the acquisition date. The significant estimate in the model is the initial incremental margin, which depletes over time, representing an advantageous increase to gross margin due to the process. In the with-or-without approach, increasing the estimated incremental margin by 5% would not impact the assets valuation materially. |
Business Acquisitions and Loss
Business Acquisitions and Loss of Control | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of detailed information about business combination [abstract] | |
Business Acquisitions and Loss of Control | 15. and Loss of Control Goodwill arising from the acquisitions represented the expected synergies, future income and growth, and other intangibles that do not qualify for separate recognition at the date of acquisition. None of the goodwill arising from the acquisitions is expected to be deductible for tax purposes. Acquisition of 48North Cannabis Corp. On September 1, 2021, pre-market open, the Company acquired 100% of the issued and outstanding common shares of 48North Cannabis Corp. ("48North"). 48North was a Canadian-licensed cultivator and seller of medical and adult-use cannabis. 48North was acquired for select intellectual properties and its established market share. Under the arrangement, each former 48North common share was exchanged for 0.02366 (the "exchange ratio") of a HEXO common share. In addition, all issued and outstanding stock options and compensation units of 48North were replaced with HEXO backed units, having the same terms but adjusted for the exchange ratio, and all issued and outstanding common share purchase warrants of 48North became exercisable for HEXO common shares adjusted for the exchange ratio. The following table summarizes the purchase consideration and values of the net assets acquired from 48North on the acquisition date. Units Unit Price Fair Value ($) ($) Consideration Shares issued (i) 5,352,005 3.10 16,591 Replacement warrants outstanding (ii) 1,554,320 769 Replacement stock options issued (iii) 17,766 18 Settlement of pre-existing debt (iv) n/a 5,000 Total fair value of consideration 22,378 Net assets acquired Current assets Cash and cash equivalents 989 Accounts receivable 1,263 Other receivables 259 Prepaid expenses 2,962 Inventory 5,040 Biological assets 875 Assets held for sale 2,513 Non-current assets Property, Plant and Equipment 9,683 Intangible assets - brands 2,500 Goodwill Note 16 11,453 Total assets 37,537 Current liabilities Accounts payable and accrued liabilities (10,580 ) Excise taxes payable (555 ) Lease Liability (178 ) Non-current liabilities Lease Liability (553 ) Term loan (3,293 ) Total liabilities (15,159 ) Total net assets acquired 22,378 (i) (ii) Risk free rate of 0.39%-0.53% Expected life of 1 - 3 years Volatility rate of 101%; determined using historical volatility data Exercise prices of $6.34-$72.70 Share price of $3.10 (iii) Risk free rate of 0.31% - 0.51% Expected life of 0.16 - 2.59 years Volatility rate of 101%; determined using historical volatility data Exercise prices of $6.33 - $46.03 Share price of $3.10 (iv) Prior to the transaction's closing date, the Company issued a $5,000 subordinated secured bridge loan with a 6-month term to 48North. For purposes of the acquisition accounting the loan, which had a fair value of $5,000, was effectively settled at the acquisition date and included in purchase consideration. The fair value of the vested share-based compensation as at the acquisition date was deemed consideration paid in the transaction. The fair value of those options not yet vested at the acquisition date was added to the Company's share-based payment reserve to be expensed over the remaining vesting period of the options as permitted under IFRS 3 - Business Combinations During the year ended July 31, 2022, 48North contributed net revenue of $2,209 and a comprehensive net loss attributed to shareholders of $26,634 to the Company's consolidated results since the date of acquisition. If the acquisition had occurred on August 1, 2021 management estimates that the Company's consolidated net revenue and the comprehensive net loss would not have been materially impacted. Acquisition of Redecan On August 30, 2021, the Company acquired 100% of the outstanding shares of the entities that carry on the business of Redecan. Redecan was acquired for its brands, growing capability (including outdoor growing capability) intellectual properties and its established market share. The following table summarizes the purchase consideration and values of the net assets acquired from Redecan on the acquisition date. Units Unit Price Fair Value ($) ($) Consideration Cash (i) 402,173 Shares issued (ii) 69,721,116 3.07 214,044 Total fair value of consideration 616,217 Net assets acquired Current assets Cash and cash equivalents 20,027 Accounts receivable 9,795 Prepaid expenses 4,366 Excise taxes receivable 2,566 Inventory 37,229 Biological assets 7,476 Income tax recoverable 4,947 Non-current assets Property, plant and equipment 125,844 Cultivation and processing license 73,079 Brands 94,700 Know-how intangible asset 27,337 Intangible assets - software 1,221 Goodwill Note 16 275,397 Total assets 683,984 Current liabilities Accounts payable and accrued liabilities (4,340 ) Excise taxes payable (1,125 ) Lease liability - current (144 ) Income Tax Payable (188 ) Non-current liabilities Lease Liability (1,117 ) Deferred tax (60,853 ) Total liabilities (67,767 ) Total net assets acquired 616,217 (i) (ii) The identified cultivation and processing license ("the license") enables the Company to cultivate and produce cannabis products for sale and was valued at $73,079 using a with-or-without approach in an income based discounted cash flow ("DCF") valuation model (Level 3). The model estimates the value of the license as the difference between the present value of the future cash flows of the facility with-or-without a license in place, as at the acquisition date. Significant estimates in the model include the forecast gross margin and the estimated time to obtain a license and complete cultivation and production ramp up. If all other assumptions were held constant, and the forecasted gross margin rate was decreased by 10%, the valuation of the cultivation and processing license would decrease by $18,300. In the with-or-without approach, reducing the estimated time to obtain a license and complete cultivation and production ramp up by six months would reduce the valuation of the license by $21,800. The identified Brand asset which allows the Company immediate access to accretive market share and product offerings has been valued at $94,700 using a relief from royalty approach model (Level 3). If all other assumptions were held constant, and the forecasted revenue growth rate was decreased by 10%, the valuation of the brand would decrease by $9,500. The identified Know-How intangible asset, related to the unique pre-roll process, provides the Company immediate access to scaled, efficient pre-roll technology and production capability and has been valued at $27,337. The asset was valued using a with-or-without approach in an income based DCF valuation model (Level 3). The model estimates the value of the asset as the difference between the present value of the future cash flows of pre-rolls, with-or-without the unique Know-how as at the acquisition date. The significant estimate in the model is the incremental margin, which depletes over time, representing an advantageous increase to gross margin due to the process. In the with-or-without approach, increasing the estimated incremental margin by 5% would increase the valuation of the asset by $12,426. During the year ended July 31, 2022, Redecan contributed net revenue of $60,011 and comprehensive net income attributed to shareholders of $5,699 to the Company's consolidated results since the date of acquisition. If the acquisition had occurred on August 1, 2021 management estimates that the Company's consolidated net revenue would have increased by an estimated $6,787 and the comprehensive net loss would have increased by $5,810 for the year ended July 31, 2022. The Company recognized transaction costs (primarily broker fees) of $22,636 related to the acquisition in Acquisitions and transaction costs in the statement of comprehensive income. Upon shareholder approval of the Redecan acquisition transaction the Company issued 256,776 common shares as broker compensation. Acquisition of Zenabis Global Inc & Loss of Control On June 1, 2021, pre-market open, the Company acquired 100% of the issued and outstanding common shares of Zenabis Global Inc. ("Zenabis") pursuant to an arrangement agreement entered into on February 15, 2021. Zenabis is a Canadian-licensed cultivator and seller of medical and adult-use cannabis. Zenabis was acquired for its key brands, indoor growing capability and its established additional market share. Under the arrangement, each former Zenabis common share was exchanged for 0.01772 of a HEXO common share. In addition, all issued and outstanding stock options and compensation units of Zenabis were replaced with HEXO backed units, having the same terms but adjusted for the exchange ratio, and all issued and outstanding common share purchase warrants of Zenabis became exercisable for HEXO common shares adjusted for the exchange ratio. The following table summarizes the purchase consideration and values of the net assets acquired from Zenabis on the acquisition date: Units Unit Price Fair Value ($) ($) Consideration Shares issued (i) 17,579,336 8.61 151,358 Replacement warrants outstanding (ii) 5,970,370 32,354 Replacement stock options issued (iii) 905,902 5,727 Replacement RSU's and DSU's issued 223,497 1,554 Settlement of pre-existing debt (iv) n/a 20,760 Total fair value of consideration 211,753 Net assets acquired Current assets Cash and cash equivalents 2,804 Accounts receivable 3,822 Other receivables 198 Excise taxes receivable 86 Inventory 40,636 Biological assets 8,892 Non-current assets Property, plant and equipment 129,074 Prepaid expenses 5,670 Cultivation and processing license 28,914 Brands 5,400 Goodwill Note 16 88,189 Total assets 313,685 Current liabilities Accounts payable and accrued liabilities (22,161 ) Loans Note 22 (52,194 ) Convertible debentures (11,724 ) Non-current liabilities Lease Liability (17,059 ) Deferred tax liabilities (134 ) Total liabilities (103,272 ) Non-controlling interest 1,340 Total net assets acquired 211,753 (i) (ii) Warrants were valued using the Black-Scholes option pricing model as at the acquisition date June 1, 2021, using the following assumptions: Risk free rate of 0.31%-0.74% Expected life of 0.32 - 4.35 years Volatility rate of 96%; determined using historical volatility data Exercise prices of $3.96-$151.24 Share price of $8.61 (iii) Risk free rate of 0.31%-0.74% Expected life of 0.25 - 4.49 years Volatility rate of 96%; determined using historical volatility data Exercise prices of $2.54 - $234.7 Share price of $8.61 (iv) The fair value of the vested share-based compensation as at the acquisition date was deemed consideration paid in the transaction. The fair value of those options not yet vested at the acquisition date was added to the Company's share-based payment reserve to be expensed over the remaining vesting period of the options as permitted under IFRS 3 - Business Combinations The identifiable cultivation and processing license ("the license") enables the Company to cultivate and produce cannabis products for sale and was valued at $28,914 using a with-or-without approach in an income based discounted cash flow ("DCF") valuation model (Level 3). The model estimates the value of the license as the difference between the present value of the future cash flows of the facility with-or-without a license in place, as at the acquisition date. Significant estimates in the model include the forecast gross margin and the estimated time to obtain a license and complete cultivation and production ramp up. The significant estimates in the DCF analysis were the forecasted gross margin and the estimated time to obtain a license and complete cultivation and production ramp up. If all other assumptions were held constant, and the forecasted gross margin rate was decreased by 10%, the valuation of the cultivation and processing license would decrease by $6,336. In the with-or-without approach, reducing the estimated time to obtain a license and complete cultivation and production ramp up by six months would reduce the valuation of the license to $18,665. During the year ended July 31, 2021, Zenabis contributed net revenue of $6,800 and a comprehensive net loss attributed to shareholders of $1,513 to the Company's consolidated results since the date of acquisition. If the acquisition had occurred on August 1, 2020 management estimates that the Company's consolidated net revenue would have increased by $54,746 and the comprehensive net loss would have increased by $9,078 for the year ended July 31, 2021. The Company recognized transaction costs of $9,634 related to the acquisition (inclusive of $3,614 in share-based compensation for issuance of 448,639 common shares). LOSS OF CONTROL AND THE DECONSOLIDATION OF ZENABIS On June 17, 2022, Zenabis Global Inc. and certain of its subsidiaries, namely ZGI Acquisition Corp., Zenabis Investments Ltd., Zenabis Real Estate Holdings Ltd., Zenabis Annacis Ltd., Zenabis Atholville Ltd., Zenabis Stellarton Ltd., Zenabis Housing Ltd., Zenabis IP Holdings Ltd., Zenabis Retail Holdings Ltd., Zenabis Ventures Inc., Zenabis Operations LI td., Zenabis Ltd., Vida Cannabis (Canada) Ltd., Zenabis Hemp Company Ltd. and Zen Craft Grow Ltd. (collectively Zenabis Ernst & Young Inc. was appointed as monitor of Zenabis in the CCAA proceedings. The administration of the CCAA process, principally relating to the powers provided to the court and the court appointed monitor, as well as the secured debtholder interests, removed certain elements of control of the business from HEXO. As a result, HEXO has determined that it no longer has a controlling financial interest over Zenabis as defined in IFRS 10 - Consolidations Following the deconsolidation, the carrying value of assets and liabilities of Zenabis were removed from the Company's consolidated statements of financial position. The total amount deconsolidated from HEXO's balance sheet was $82 million, including $3.4 million of cash, $29.6 million of inventory and biological assets, $13.8 million of property, plant and equipment and assets held for sale, $55.5 million of secured debenture and ($21.0) million of other assets and liabilities, net. The Company recognized a gain on derecognition of the net assets of Zenabis in non-operating income totalling $25.0 million. The remaining Zenabis entities, outside of the CCAA proceedings, ZenPharm Limited, a Malta based legal entity and two inactive subsidiaries based in the US were excluded from the filing but were historically part of the Zenabis group of companies. In the context of the CCAA filing, there are no remaining liabilities related to these entities. Zenabis is party to transactions with HEXO and its consolidated subsidiaries entered into in the normal course of business; these transactions include recharge of various corporate expenses for services benefiting Zenabis. Up to the date of the CCAA filing, these transactions were eliminated on consolidation and had no impact on HEXO's consolidated statement of earnings. After deconsolidating Zenabis, these transactions are treated as third-party transactions in HEXO's financial statements. The amount of these related-party transactions during the period of June 17, 2022 to July 31, 2022 were $1,763. |
Goodwill
Goodwill | 12 Months Ended |
Jul. 31, 2022 | |
Goodwill [Abstract] | |
Goodwill | 16. Goodwill $ Balance as at July 31, 2020 - Acquisition - Zenabis (Note 15) 88,189 Balance as at July 31, 2021 88,189 Acquisition - Redecan (Note 15) 275,397 Acquisition - 48North (Note 15) 11,453 Impairment (375,039 ) Balance as at July 31, 2022 - Goodwill was recorded on the acquisition of Zenabis Brands Inc. on June 1, 2021, Redecan on August 30, 2021 (Note 15) and 48North on September 1, 2021 (Note 15) and is monitored at the company-wide level aggregated CGU level ("HEXO Corporate CGU"). On January 31, 2022, the carrying amount of the Company's total net assets significantly exceeded the Company's market capitalization. In addition, the Canadian Cannabis market experienced adverse changes, which were reflected in significant revisions to management's own forecasts of future net cash inflows and earnings from previous budgets and forecasts. As a result of these factors, management performed an indicator-based impairment test of goodwill as at January 31, 2022. The significant assumptions in the DCF analysis were as follows: a. ii. iii. The tax rates used in determining the future cash flows were those substantively enacted at the respective valuation date. The calculation of the adjusted current market capitalization was based on the share price of the Company on January 31, 2022, adjusted for a control premium of 20%, which was estimated by reference to premiums in recent acquisitions involving control, and from data on empirical control premium studies that considered industry, pricing, background, deal size, and timing of the observed premiums. If all other assumptions were held constant, and the share price declined by 5%, the impairment loss would increase by $18,000. If all other assumptions were held constant and the control premium was decreased by 5%, the recoverable amount would decrease by $15,000. As a result, management concluded that the carrying value of the HEXO Corporate CGU was higher than the recoverable amount, and recorded a goodwill impairment loss of $375,039, resulting in Goodwill being reduced to $nil and the HEXO Corporate CGU's carrying value falling within the recoverable amount acceptable range. The Company's goodwill impairment loss for the year ended July 31, 2022 was $375,039 (July 31, 2021 - $nil). At July 31, 2022, no indicators of impairment were identified for the HEXO Corporate CGU. |
Warrant Liabilities
Warrant Liabilities | 12 Months Ended |
Jul. 31, 2022 | |
Warrant Liabilities [Abstract] | |
Warrant Liabilities | 17. Warrant Liabilities US$25,000 US$20,000 August 2021 Underwritten Total $ $ $ $ Opening balance as at August 1, 2020 1,917 1,533 - 3,450 Loss on revaluation of financial instruments 1,269 1,014 - 2,283 Balance as at July 31, 2021 3,186 2,547 - 5,733 Issued - - 39,255 39,255 Gain on revaluation of financial instruments (3,178 ) (2,541 ) (38,552 ) (44,271 ) Balance as at July 31, 2022 8 6 703 717 The warrants are classified as a liability because the exercise price is denominated in US dollars, which is different to the functional currency of the Company. Losses (gains) on revaluation of the warrant liabilities are presented in Non-operating income (expenses) on the consolidated statements of loss and comprehensive loss. August Underwritten Public Offering On August 24, 2021, the Company closed an underwritten public offering for gross proceeds of US$144,800. Under this offering, the Company issued 24,540,012 warrants with an exercise price of US$3.45 per share. The warrant liability was measured at fair value using the Black-Scholes-Merton option pricing model (Level 2), using the following assumptions: As at Initial recognition Number of warrants 24,540,012 24,540,012 Share price US$0.19 US$2.58 Expected life 3 years 2.5 years Dividend US $nil US $nil Volatility 101% 96% Risk free rate 2.98% 0.84% Exchange rate (USD/CAD) $1.2824 $1.2608 USD$20,000 Registered Direct Offering – Warrants On January 21, 2020, the Company closed a registered direct offering with institutional investors for gross proceeds of US$20,000. Under this offering, the Company issued 1,497,007 warrants with an exercise price of US$9.80 per share. The warrant liability was measured at fair value using the Black-Scholes-Merton option pricing model (Level 2), using the following assumptions: As at As at Initial recognition Number of warrants 1,497,007 1,497,007 1,497,007 Share price US$0.19 US$3.97 US$5.80 Expected life 2.41 years 2.5 years 2.5 years Dividend US $nil US $nil US $nil Volatility 101% 95% 80% Risk free rate 2.98% 0.38% 1.57% Exchange rate (USD/CAD) $1.2824 1.2462 1.3116 US$25,000 Registered Direct Offering – Warrants On December 31, 2019, the Company closed a registered direct offering with institutional investors for gross proceeds of US$25,000. Under this offering, the Company issued 1,871,259 warrants with an exercise price of US$9.80 per share. The warrant liability was measured at fair value using the Black-Scholes-Merton option pricing model (Level 2), using the following assumptions: As at As at Initial recognition Number of warrants 1,871,259 1,871,259 1,871,259 Share price US$0.19 US$3.97 US$6.36 Expected life 2.41 years 2.5 years 2.5 years Dividend US $nil US $nil US $nil Volatility 101% 95% 79% Risk free rate 2.98% 0.38% 1.71% Exchange rate (USD/CAD) $1.2824 1.2462 1.2988 |
Convertible Debentures
Convertible Debentures | 12 Months Ended |
Jul. 31, 2022 | |
Debt instruments held [abstract] | |
Convertible Debentures | 18. Note July 31, 2022 July 31, 2021 $ $ Unsecured convertible debenture- March 2019 (a) - 3,406 Unsecured convertible debenture- December 2019 (b) 38,301 33,089 Total convertible debentures 38,301 36,495 Current 38,301 3,406 Non-Current - 33,089 (a) Balance as at July 31, 2020 $ - Acquired on business combination 3,722 Interest payments (372 ) Interest expense 56 Balance as at July 31, 2021 $ 3,406 Interest expense 55 Debt repayment (3,461 ) Balance as at July 31, 2022 $ - On June 1, 2021, the Company completed its business acquisition of Zenabis which included the assumption of Zenabis' unsecured convertible debentures issued in March 2019. The debentures bore interest, payable in cash only, from the date of issue at 6.0% per annum, payable semi-annually on June 30 and December 31 of each year and were convertible at a price of $147.29. The convertible debentures were convertible, at the option of the holder, into common shares of the Company at any time prior to the close of business on the last business day immediately preceding the maturity date. On September 27, 2021, the Company repaid, in full, the outstanding principal and interest. (b) Balance as at July 31, 2020 $ 28,969 Interest expense 7,331 Interest paid (3,211 ) Balance as at July 31, 2021 $ 33,089 Interest expense 8,423 Interest paid (3,211 ) Balance as at July 31, 2022 $ 38,301 On December 5, 2019, the Company closed a $70,000 private placement of convertible debentures. The Company issued a total of $70,000 principal amount of 8.0% unsecured convertible debentures maturing on December 5, 2022 (the “Debentures”). The Debentures are convertible at the option of the holder at any time after December 7, 2020 and prior to maturity at a conversion price of $12.64 per share (the “Conversion Price”), subject to adjustment in certain events. The Company may force the conversion of all of the then outstanding Debentures at the Conversion Price at any time after December 7, 2020 and prior to maturity on 30 days’ notice if the daily volume weighted average trading price of the common shares of the Company is greater than $30.00 for any 15 consecutive trading days. Upon maturity, the holders of the Debentures have the right to require the Company to repay any principal amount of their Debentures through the issuance of common shares of the Company in satisfaction of such amounts at a price equal to the volume weighted average trading price of the common shares on the TSX for the five trading days immediately preceding the payment date. In May 2020, the Company provided notice to all holders of the Debentures of an option to voluntarily convert their Debentures into units of the Company (the “Conversion Units”) at a discounted early conversion price of $3.20 (the “Early Conversion Price”) calculated based on the 5-day volume weighted average HEXO Corp. share price (the “VWAP”) preceding the announcement. The VWAP utilized data from both the TSX and NYSE. Each Conversion Unit provided the holder one common share and one-half common share purchase warrant (with an exercise price of $4.00 and term of three years). The early conversion occurred in two phases, the first being on June 10, 2020 followed by the second and final phase June 30, 2020. During phases one and two, $23,595 principal amount and $6,265 principal amount of the Debentures were converted under the Early Conversion Price and into common shares and 3,686,721 and 978,907 common share purchase warrants of HEXO Corp., respectively. On July 31, 2022 there remains $40,140 in principal debentures (July 31, 2021 - $40,140) outstanding. The accrued and unpaid interest as at July 31, 2022 was $291 (July 31, 2021 - $483). |
Senior Secured Convertible Note
Senior Secured Convertible Note | 12 Months Ended |
Jul. 31, 2022 | |
Senior Secured Convertible Note [Abstract] | |
Senior Secured Convertible Note | 19. Senior Secured Convertible Note Pre- July 12, 2022 Pre- July 12, July 31, July 31, Senior Secured Convertible Note US$ $ US$ $ Opening balance, beginning of the year 364,847 454,673 - - Issued at fair value - - 407,284 491,714 Early conversions - - (413 ) (497 ) Redemptions (177,017 ) (223,148 ) (27,500 ) (33,525 ) Gain on fair value adjustment 11,925 15,784 (14,524 ) (18,100 ) Foreign exchange loss - 12,672 - 15,081 Balance upon amendment July 31, 2022 (Note 20) / Balance end of period (July 31, 2021) 199,755 259,981 364,847 454,673 Unrecognized Day 1 Loss Opening balance, beginning of the year (72,214 ) (86,974 ) - - Unrecognized loss deferred at issuance - - (79,684 ) (96,203 ) Recognized loss during the period 72,214 86,974 7,470 9,229 Ending balance, end of the period - - (72,214 ) (86,974 ) Total balance, end of period, net 199,755 259,981 292,633 367,699 On May 27, 2021 (the "Issuance date"), the Company issued a Senior Secured Convertible Note (the "Note") directly to an institutional purchaser, HT Investments MA LLC ("HTI"), and certain of its affiliates or related funds (collectively, the "Holder") at a principal amount of $434,628 (US$360,000). The Note was sold at a purchase price of $395,511 (US$327,600), or approximately 91% of the principal amount ("transaction price"). The Note bore no periodic cash interest payments and was due for payment on May 1, 2023 (the "maturity date") at 110% of the principal amount (the "Redemption Amount"), if not converted or redeemed earlier. The Redemption Amount on Issuance date was $478,091 (US$396,000). The Company used a portion of the net proceeds of the Note to fund the acquisition of Redecan (Note 15). The Note was secured against the assets of HEXO Operations Inc. and its subsidiaries, as well as the assets of HEXO USA Inc and its subsidiaries. The Note was convertible, in full or in part, by the Holder into freely tradeable common shares of the Company at any time before the second last trading day before the maturity date at a conversion rate of 142.6533 common shares per US$1.00. The Note included different conversion and redemption options available to the Holder and the Company, subject to certain terms and limitations. Fair Value Measurement The Note represented a hybrid instrument with multiple embedded derivatives requiring separation. The Note, as a whole, was designated as FVTPL, as at least one of the derivatives significantly modified the cash flows of the Note and it was clear with limited analysis that separation was not prohibited. The changes in fair value of the instrument were recorded in the statement of net loss with changes in credit spread being recognized through Other comprehensive income. The fair value of the Note was classified as Level 2 in the fair value hierarchy and was determined using the partial differential equation method with the following inputs; As at As at Initial recognition Share price US$0.20 US$3.98 US$6.53 Dividend $nil $nil $nil Volatility 81% 85% 85% Risk free rate 3.57% 0.327% 0.227% Credit spread 38.57% 15.44% 16.06% During the year ended July 31, 2022 the gain on fair value adjustments related to changes in credit spread amounted to $23,964 (July 31, 2021 - $1,590). The fair value of the Note at initial recognition was determined using a valuation technique that included unobservable inputs. The Company identified a difference between the transaction price and the fair value of $96.2 million (US$79.7 million) (the "Day 1 loss"). The Company believed that time is a factor that market participants would take into account when pricing the note. Therefore, the unrecognized Day 1 loss was recognized on a straight-line basis in the statement of net loss over the contractual life of the Note. Upon extinguishment on July 12, 2022, the remaining amount of the Day 1 loss was accelerated and recognized in the statement of net loss. Event of Default On January 31, 2022, the Company failed to meet a financial covenant under the Note which required the Company to achieve positive adjusted EBITDA for the three-month period ended January 31, 2022. This was an event of default under the terms of the Note. On March 13, 2022, the Holder of the Note agreed to an irrevocable waiver of their rights in relation to the event of default. This waiver was then overridden by a forbearance to act upon the default event issued by the Holder as part of the Transaction Agreement. As the Holder did not irrevocably waive the default event but rather waived the right to act upon the default event, the Note remained in default through the period from January 31, 2022 to the date of extinguishment on July 12, 2022. As a result of the default, the Holder obtained the option to declare the Note (or any portion thereof) to become due and payable immediately for cash in an amount equal to the Event of Default Acceleration Amount, as defined in the Note. The Event of Default Acceleration Amount is a cash amount equal to the greater of: ● ● (B) 115% of the product of (i) the original conversion rate of 142.6533, (ii) the outstanding principal amount, including any accrued and unpaid interest, and (iii) the greater of: ○ ○ the highest Daily VWAP per Common Share occurring during the thirty (30) consecutive VWAP Trading Days ending on, and including, the VWAP Trading Day immediately before the date the applicable Event of Default occurred. Subsequent to the event of default on January 31, 2022, and up until extinguishment on July 12, 2022, the Note was carried at the amount payable on demand as under IFRS, the fair value of the note with a demand feature cannot be less than the amount payable on demand, discounted from the first date that the amount could be required to be repaid. The demand amount was calculated by reference to the Event of Default Acceleration amount, as defined in the agreement. Fair value was determined through the use of a model using a valuation technique that includes unobservable inputs and was less the amount payable on demand. As the demand amount represented the higher amount, at the time of extinguishment on July 12, 2022 the Note was carried at its demand amount of $259,981 (US $199,755), representing 115% of the outstanding principal on the date of extinguishment. Amendment of the Note On July 12, 2022, pursuant to a transaction agreement dated April 11, 2022, as amended on June 14, 2022 (the “Transaction Agreement”) among HEXO, Tilray Brands and HT Investments MA LLC (“HTI”), the terms of the Note were amended and restated and the Note was immediately thereafter assigned to Tilray Brands, pursuant to the terms of an amended and restated assignment and assumption agreement dated June 14, 2022. The amended note is hereinafter referred to as the Amended Senior Secured Convertible Note (Note 20). As consideration for the amendment, HEXO issued 56,100,000 Common Shares and 11,674,266 rights exercisable for Common Shares to HTI, representing 12% of the outstanding principal of the Amended Note at the closing at the exercise price of CAD$0.40. On July 25, 2022, the rights were exercised. Management assessed the changes made to the Note and determined that the modification should be accounted for as an extinguishment of the previous liability and then recorded the Amended Note at its fair value determined as of the date of the modification. As a result, the consolidated statements of net loss and comprehensive loss for the year ended July 31, 2022, includes a net gain on extinguishment of liabilities, detailed as follows: $ Carrying value of Senior secured convertible note pre-amendment 259,981 Fair value of common shares and share rights issued on amendment (17,900 ) Transaction costs (12,987 ) Fair value of Amended senior secured convertible note (208,560 ) Net gain on extinguishment of debt 20,534 On January 18, 2022, the Company utilized cash proceeds from the sale of its interest in Belleville Complex Inc. to settle $10,111 of optional redemptions at a rate of 110% of principal (Note 11). No shortfall cash payments were issued in the year ended July 31, 2022. |
Amended Senior Secured Converti
Amended Senior Secured Convertible Note | 12 Months Ended |
Jul. 31, 2022 | |
Convertible Note Payable [Abstract] | |
Amended Senior Secured Convertible Note | 20. July 31, July 31, US$ $ Balance upon amendment (Note 19) 160,246 208,560 Gain on fair value during the year 3,805 4,880 Foreign exchange loss - (3,061 ) Ending balance, end of the year 164,051 210,379 On July 12, 2022, the Company entered into the Transaction Agreement (Note 19), the terms of the Note were amended and restated and the Note was immediately thereafter assigned to Tilray Brands, pursuant to the terms of an amended and restated assignment and assumption agreement dated June 14, 2022 (the “Amended Note”, or the “Amended Senior Secured Convertible Note”). Pursuant to the terms of the Transaction Agreement, Tilray Brands acquired 100% of the remaining outstanding principal balance of US$173.7 million of the Amended Note and, concurrently, HEXO assumed an obligation to pay a US$1.5 million monthly fee, that represents a finance cost, until the earlier of the date all obligations of the Company pursuant to the terms of the Amended Note have been satisfied, extinguished or terminated, the conversion in full of the Amended Note, cancellation by Tilray and January 15, 2027. The Amended Note matures on May 1, 2026, includes coupon interest at the fixed rate of five percent (5%) per annum, calculated daily, and is payable by the Company to the Holder semi-annually on the last business day of each June and December (commencing June, 2022). For the first year of the Amended Note, the Company is required to pay interest in cash. Unpaid interest at July 31, 2022 was $464 (July 31, 2022 - $nil). Thereafter, until the maturity date, in the event that the Company is not in compliance with the Minimum Liquidity covenant, the Company shall be entitled to elect to add the amount of the interest to the Principal Amount of the Amended Note as capitalized interest. Subject to the terms of the Amended Note, unless the principal amount and the capitalized interest have previously been converted, on the maturity date, the Company shall pay the capitalized interest by way of conversion consideration. Subject to certain limitations and adjustments, the Amended Note is convertible into HEXO Common Shares at the Holder’s option at any time prior to the second scheduled trading day prior to the maturity date, at a conversion price of CAD$0.40 per HEXO Common share as determined the day before exercise, including all capitalized interest. HEXO has the ability to force the conversion if the daily VWAP per common share is equal to or exceeds $3.00 per share for twenty consecutive trading days, subject to HEXO meeting the terms of the equity condition, as set out in the terms of the Amended Note. The Company is not able to redeem or repay the Amended Note prior to May 1, 2026, without the prior written consent of the Holder. The Company is subject to certain financial and non-financial covenants as set out in the terms of the Amended Note. Among other covenants, the Company is subject to a minimum liquidity covenant and is required to maintain an unrestricted cash amount equal to or greater than US$20.0 million. In addition, as of the last day of each three-month period starting with the three-month period ending April 30, 2023, the Company is required to have Adjusted EBITDA of not less than US$1.00 for the three-month period ending on such day. Adjusted EBITDA means for any fiscal quarter, the Adjusted EBITDA of the Company, calculated as: (i) total net income (loss); (ii) plus (minus) income taxes (recovery); (iii) plus (minus) finance expense (income); (iv) plus depreciation; (v) plus amortization; (vi) plus (minus) investment (gains) losses, including revaluation of financial instruments, share of loss from investment in joint ventures, adjustments on warrants and other financial derivatives, unrealized loss on investments, and foreign exchange gains and losses; (vii) plus (minus) fair value adjustments on inventory and biological assets; (viii) plus inventory write-downs and provisions; (ix) plus (minus) non-recurring transaction and restructuring costs; (x) plus impairments to any and all long-lived assets; (xi) plus all stock-based compensation; and (xii) plus any management or advisory fee paid by the Company to the Holder or any Affiliate thereof during the applicable quarter. On the occurrence of an Event of Default, the Amended Note becomes due and payable immediately at the Event of Default Acceleration Amount, as defined under the Amended Note agreement. The Amended Note constitutes the senior secured obligation of the Company. Fair Value Measurement The Amended Note represents a hybrid instrument containing a conversion feature. The Amended Note, as a whole, has been designated as FVTPL, as at least one of the derivatives does significantly modify the cash flows of the Amended Note and it is clear with limited analysis that separation is not prohibited. The changes in fair value of the instrument are recorded in the statement of net loss with changes in fair value attributable to changes in credit risk being recognized through other comprehensive income. The fair value of the Note is classified as Level 2 in the fair value hierarchy and was determined using the partial differential equation method with the following inputs; As at Initial recognition Share price US$0.19 US$0.20 Dividend $nil $nil Volatility 87.8% 80.7% Credit spread 34.2% 38.6% Conversion price US$0.31 US$0.30- US$0.31 Risk free rates were selected based upon a SOFR curve at the valuation date. The curve’s period range was 3-months to 4 years. A decrease of credit spread by 1% would increase the fair value of the instrument by $2,487. |
Lease Liabilities
Lease Liabilities | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of quantitative information about leases for lessee [abstract] | |
Lease Liabilities | 21. The following is a continuity schedule of lease liabilities for the years ended July 31, 2022 and 2021: $ Balance at July 31, 2020 29,116 Assumed on business combination (Note 15) 17,059 Lease disposals (789 ) Lease payments (4,835 ) Interest expense on lease liabilities 3,334 Balance at July 31, 2021 43,885 Assumed on business combination (Note 15) 1,992 Lease additions 29 Lease terminations (24,300 ) Lease payments (6,054 ) Interest expense on lease liabilities 4,197 Derecognition due to loss of control (Note 15) (16,909 ) Balance at July 31, 2022 2,840 Current 914 Non-current 1,926 On July 31, 2022, the Company terminated its lease of the Belleville Ontario, manufacturing and processing centre. The Company previously leased the facility as a 15-year anchor tenant from a related party (Note 30). Under the lease surrender terms the Company incurred a penalty fee of $2,380, payable on July 31, 2022. Also, under the surrender terms the Company agreed to surrender certain fixed assets with an estimated fair market value of $160. As at July 31, 2022, the Company has a remaining $525 accrued for the associated liabilities of transferring the lease back to the lessor. The Company recognized a gain on lease termination of $22,680 recorded in other income. The Company expensed variable lease payments of $3,200 in the year ended July 31, 2022 (July 31, 2021 -$3,885). The following table is the Company's lease obligations over the next five fiscal years and thereafter as at July 31, 2022: Fiscal year 2023 2024 - 2025 2026 - 2027 Thereafter Total $ $ $ $ $ Lease obligations 1,026 1,174 300 1,200 3,700 |
Senior Notes Payable
Senior Notes Payable | 12 Months Ended |
Jul. 31, 2022 | |
Borrowings [abstract] | |
Senior Notes Payable | 22. The following table illustrates the continuity schedule of the senior notes payable for the years ended July 31, 2022 and July 31, 2021: July 31, 2022 July 31, 2021 $ $ Opening Balance 50,159 - Assumed on business combination - 50,138 Interest paid (5,095 ) (1,210 ) Interest expense 6,604 1,231 Deconsolidated due to loss of control (Note 15) (51,668 ) - Closing Balance - 50,159 Current portion - 50,159 Long-term portion - - On June 1, 2021 as part of the Zenabis acquisition, the Company assumed senior notes which have a principal amount owing of $51,875 and a maturity date of March 31, 2025. The senior notes bear interest at 14% per annum calculated and compounded monthly in arrears and payable to the lender on the first day of each month. The debt was secured against the assets of Zenabis. Prior to the business acquisition of Zenabis certain covenants were claimed by the lender to be in breach, and a demand for repayment was received by the borrower. Zenabis filed a petition on February 19, 2021 for a determination of the amount required to repay and terminate the senior notes and to obtain discharges of the debenture and related security. Further, the senior notes contain a covenant that requires lender permission for a change in control event. This was not obtained prior to the close of the acquisition of Zenabis and as such, the debt remains in default. The senior notes were recorded at fair value at the business acquisition date and amortized cost thereafter. The senior notes were derecognized upon the loss of control of Zenabis on June 17, 2022 (Note 15). |
Share Capital
Share Capital | 12 Months Ended |
Jul. 31, 2022 | |
Share Capital [Abstract] | |
Share Capital | 23. (a) Authorized An unlimited number of common shares and an unlimited number of special shares, issuable in series. (b) Share Consolidation The Company finalized the share consolidation on the basis of four pre-consolidation common shares for one post-consolidation common share (4:1) by way of shareholder approval at the annual and special meeting of shareholders held December 11, 2020 (the "Consolidation"). The Consolidation was effected by the filing of articles of amendment to the Company's articles under the Business Corporations Act All balances of common shares, common share purchase warrants, stock options and restricted share units herein are reflective of the Consolidation (unless otherwise noted). During the year ended July 31, 2022 the Company failed to the meet the NASDAQ's US$1.00 minimum share price. On July 27, 2022, the Company received an 180 day extension to regain compliance status. (c) Issued and Outstanding As at July 31, 2022, a total of 600,988,447 (July 31, 2021 - 152,645,946) common shares were issued and outstanding. No special shares have been issued or are outstanding. Number of shares Share Capital Balance at July 31, 2020 120,616,441 $ 1,023,788 May 2021 at the market offering, net (i) 6,373,926 45,257 June 2020 at the market offering (ii) 244,875 - Senior secured convertible note 1 Note 19 4,602,241 29,540 Acquisition shares - Zenabis Note 15 17,579,336 151,358 Transaction costs Note 15 448,639 3,612 Exercise of warrants Note 24 2,146,931 9,932 Exercise of stock options Note 25 410,051 3,213 Exercise of equity settled RSUs Note 25 223,506 1,267 Balance at July 31, 2021 152,645,946 $ 1,267,967 Acquisition shares - Redecan, net Note 15 69,721,116 213,746 Acquisition shares - 48North, net Note 15 5,352,005 16,486 At-the-Market program, net of costs (iv) 24,290,117 27,266 August 2021 Underwritten Public Offering (iii) 49,080,024 135,645 Redemptions of senior secured convertible note 1 Note 19 202,224,566 199,818 Amended senior secured convertible note Note 20 67,774,266 17,900 Equity line of credit standby commitment fee (v) 10,843,373 3,795 Advisor and broker compensation (vi) 19,040,010 6,998 Exercise of stock options Note 25 17,024 147 Balance as at July 31, 2022 600,988,447 $ 1,889,768 1 (i) May 2021 At-the-market ("ATM") Offering On May 11, 2021, the Company established an ATM equity program allowing the Company to issue up to $150,000 (or its US equivalent) of common shares to the public. The program ceased activity on May 25, 2021 and a total of approximately $46,987, (after foreign exchange gains) was generated through the issuance of 6,373,926 common shares in the year ended July 31, 2021. Issuance costs in the year ended July 31, 2021, were $1,730. (ii) June 2020 At-the-market ("ATM") Offering On June 16, 2020, the Company established an ATM equity program allowing the Company to issue up to $34,500 (or its US equivalent) of common shares to the public. The program closed on July 31, 2020, and on August 5, 2020, the Company issued the final shares. (iii) August 2021 Underwritten Public Offering On August 24, 2021, the Company closed an underwritten public offering for total gross proceeds of $183,103 (US$144,786) were generated through the issuance of 49,325,424 units comprising 49,325,424 common shares and 24,540,012 common share purchase warrants. The warrants were fair valued at $39,255 on the grant date and recorded as a Warrant liability (Note 17). Associated issuance costs in the year ended July 31, 2022, were $8,069. In connection with the underwritten public offering, the Company issued 245,400 common shares with a value of $834 as broker compensation. (iv) At-the-Market ("ATM") Program On November 17, 2021, the Company resumed the ATM program initially launched in May 2021 allowing the Company to issue up to $150,000 (or its US equivalent) of common shares to the public. Upon resumption, the Company raised additional gross proceeds of $27,869 on the issuance of 24,290,117 common shares. Associated issuance costs in the year ended July 31, 2022 were $603. (v) Equity line of credit - Standby commitment fee On May 12, 2022, the Company issued 10,843,373 common shares with a market value of $3,795, as a Standby Commitment Fee to KAOS Capital Inc and an affiliate of KAOS Capital Inc in connection to non-binding Letter of Intent for a $180 million equity backstop agreement (the "Equity line of credit"). As at July 31, 2022, the Equity line of credit's prospectus supplement qualifying the Stand-By Commitment Shares had not been filed and the line of credit has not been drawn upon. (vi) Advisor and broker compensation In connection with the closing of the Amended and restated senior secured convertible note, the Company issued 18,537,834 common shares as broker compensation with a value of $4,913 (Note 20). Another 256,776 common shares with a value of $1,251 were issued as advisor compensation in connection to the closing of Redecan. |
Common Share Purchase Warrants
Common Share Purchase Warrants | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Common Share Purchase Warrants [Abstract] | |
Common Share Purchase Warrants | 24. Common Share Purchase Warrants The following table summarizes warrant activity during the year ended July 31, 2022 and year ended July 31, 2021. July 31, 2022 July 31, 2021 Number of Weighted average Number of Weighted average warrants exercise price 1 warrants exercise price 1 Outstanding, beginning of year 36,666,958 $ 8.85 33,379,408 $ 7.60 Expired and cancelled 2 (3,179,074 ) 33.86 (535,889 ) 4.09 Issued on acquisition 1,554,320 22.43 5,970,370 14.59 Issued 24,540,012 4.35 - - Exercised - - (2,146,931 ) 4.10 Outstanding, end of year 59,582,216 $ 6.07 36,666,958 $ 8.85 1 2 3 The following table summarizes the warrants issues during the years ended July 31, 2022 and July 31, 2021. Issuance date Exercise price Warrants issued Expiry period June 01, 2021 (issued on acquisition) $ 3.96-$155.19 5,970,370 0.17-4 years August 24, 2021 US$3.45 24,540,012 5 years September 1, 2021 (issued on acquisition) $ 6.42-$72.70 1,554,320 1.63-2.59 years The following is a consolidated summary of warrants outstanding as at July 31, 2022 and July 31, 2021. July 31, 2022 July 31, 2021 Number Book value Number Book value Classified as Equity $ $ June 2019 financing warrants Exercise price of $63.16 expiring June 19, 2023 546,135 10,023 546,135 10,022 April 2020 underwritten public offering warrants Exercise price of $3.84 expiring April 13, 2025 11,830,075 15,971 11,830,075 15,971 May 2020 underwritten public offering warrants Exercise price of $4.20 expiring May 21, 2025 7,591,876 10,446 7,591,876 10,446 Conversion Unit warrants Exercise price of $4.00 expiring June 10, 2023 3,686,721 11,427 3,686,721 11,427 Exercise price of $4.00 expiring June 30, 2023 978,907 1,928 978,907 1,928 Broker / Consultant warrants Exercise price of $3.00 expiring November 3, 2021 - - 18,905 34 Exercise price of $3.00 expiring March 14, 2022 - - 23,571 66 Exercise price of $63.16 expiring June 19, 2023 15 - 15 - Molson warrants Exercise price of $24.00 expiring October 4, 2021 - - 2,875,000 42,386 Issued in connection with business acquisition Exercise price of $151.24 expiring September 27, 2021 - - 14,617 - Exercise price of $155.19 expiring April 17, 2022 - - 226,422 1 Exercise price of $78.16 expiring August 21, 2022 15,992 3 15,992 3 Exercise price of $102.71 expiring August 21, 2022 24,338 2 24,338 2 Exercise price of $11.29 expiring January 27, 2023 356,689 1,195 356,689 1,195 Exercise price of $10.99 expiring April 16, 2023 680,877 398 - - Exercise price of $12.68 expiring May 4, 2023 602,804 322 - - Exercise price of $72.70 expiring April 2 2024 250,080 49 - - Exercise price of $3.96 expiring April 23, 2025 631,322 4,232 631,322 4,232 Exercise price of $9.03 expiring June 25, 2025 3,205,378 18,236 3,205,378 18,236 Exercise price of $5.64 expiring September 23, 2025 1,228,873 7,902 1,228,873 7,902 Exercise price of $8.47 expiring October 30, 2025 43,856 261 43,856 261 31,673,938 82,395 33,298,692 124,112 Classified as Liability US$25m Registered Direct Offering Warrants Exercise price of US$9.80 expiring December 31, 2024 1,871,259 8 1,871,259 3,185 US$20m Registered Direct Offering Warrants Exercise price of US$9.80 expiring January 22, 2025 1,497,007 6 1,497,007 2,548 August 2021 Underwritten Public Offerings Warrants Exercise price of US$3.45 expiring August 24, 2026 24,540,012 703 - - 27,908,278 717 3,368,266 5,733 59,582,216 83,112 36,666,958 129,845 |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Detailed Information About Share Based Compensation [Abstract] | |
Share-based Compensation | 25. Omnibus Plan The Company has a share option plan (the "Former Plan"), adopted in July 2017, that was administered by the Board of Directors who established exercise prices and expiry dates. Expiry dates are up to 10 years from issuance, as determined by the Board of Directors at the time of issuance. On June 28, 2018, the Board of Directors put forth a new share option plan (the "Omnibus Plan") which was approved by shareholders on August 28, 2019. Unless otherwise determined by the Board of Directors, options issued under both the Former Plan and Omnibus Plan vest over a three-year period. The maximum number of common shares reserved for issuance for options that may be granted under the Omnibus Plan is 10% of the issued and outstanding common shares or 60,098,845 common shares as at July 31, 2022 (July 31, 2021 - 15,264,595). The Omnibus plan is subject to cash and equity settlement, the Former Plan, Zenabis plan are subject to equity settlements. Options issued prior to July 2018 under the outgoing plan and the options assumed through the acquisitions of 48North and Zenabis do not contribute to the available option pool reserved for issuance. As of July 31, 2022, the Company had 23,415,128 issued and outstanding under the Omnibus Plan, 747,244 issued and outstanding under the Former Plan and 524,696 issued and outstanding under the assumed plans from business combinations. Stock Options July 31, 2022 July 31, 2021 Number of Weighted average Number of Weighted average options exercise price options exercise price Opening balance 12,018,143 $ 10.63 7,503,691 $ 16.30 Granted 17,851,906 0.73 5,273,906 5.21 Replacement options issued on acquisition 162,009 7.19 905,902 3.81 Forfeited (4,714,233 ) 4.47 (630,473 ) 12.80 Expired (613,733 ) 22.20 (624,832 ) 25.95 Exercised (17,024 ) 2.54 (410,051 ) 3.00 Closing balance 24,687,068 $ 0.73 12,018,143 $ 10.63 The following table summarizes the stock option grants during the year ended July 31, 2022 and July 31, 2021: Options granted Grant date Exercise price Executives and Non-executive Total Vesting terms Expiry period October 30, 2020 3.88 349,652 315,358 665,010 Terms A 10 years December 22, 2020 5.44 380,673 960,100 1,340,773 Terms A 10 years April 28, 2021 7.54 - 85,389 85,389 Terms A 10 years June 17, 2021 7.43 75,000 45,613 120,613 Terms A 10 years July 29, 2021 5.24 580,164 2,481,957 3,062,121 Terms A 10 years Total 1,385,489 3,888,417 5,273,906 November 1, 2021 1.86 2,327,613 947,580 3,275,193 Terms A 10 years March 21, 2022 0.75 2,491,034 2,254,069 4,745,103 Terms A 10 years April 28, 2022 0.51 2,839,660 178,157 3,017,817 Terms A 10 years June 16, 2022 0.28 6,192,033 621,760 6,813,793 Terms A 10 years Total 13,850,340 4,001,566 17,851,906 Vesting terms A - One-third of the options will vest on each of the one-year anniversaries of the date of grant over a three-year period. The following table summarizes information concerning stock options outstanding as at July 31, 2022. Exercise price Number outstanding Weighted average Number exercisable Weighted average $0.28-$0.75 13,984,612 9.78 1,925,669 9.65 $1.86-$9.92 7,422,273 7.90 5,497,265 7.55 $10.76-$34.00 3,280,183 6.46 3,237,557 6.46 24,687,068 10,660,491 Restricted Share Units ("RSUs") Under the Omnibus Plan, the Board of Directors is authorized to issue RSUs up to 10% of the issued and outstanding common shares, inclusive of the outstanding stock options. At the time of issuance, the Board of Directors establishes conversion values and expiry dates, which are up to 10 years from the date of issuance. The restriction criteria of the units are at the discretion of the Board of Directors and from time to time may be inclusive of Company based performance restrictions, employee-based performance restrictions or no restrictions to the units. The following table summarizes RSU activity during the year ended July 31, 2022 and the year ended July 31, 2020. July 31, 2022 July 31, 2021 Value of units on Value of units on Units grant date Units grant date Opening balance 550,832 $ 7.91 587,108 $ 8.41 Granted 1,517,236 1.74 24,008 3.17-7.17 Replacement units issued on acquisition - - 223,506 8.61 Exercised - equity settled - - (223,506 ) 8.61 Exercised - cash settled - - (25,483 ) 5.62-8.60 Forfeited (34,801 ) 3.30 (34,801 ) 11.76 Closing balance 2,033,267 $ 3.24 550,832 $ 7.91 The following table summarizes the RSUs granted during the year ended July 31, 2022 and the year ended July 31, 2021. RSUs granted Grant date Unit value Executive and Non-executive Vesting terms Expiry period October 30, 2020 $ 3.16 7,161 - Terms A 10 years June 17, 2021 $ 7.17 9,413 - Terms A 10 years July 29, 2021 $ 5.38 7,434 - Terms A 10 years Total 24,008 November 1, 2021 $ 1.74 1,517,236 - Terms A 10 years Total 1,517,236 Vesting terms A - One-third of the units vest on each of the one-year anniversaries for the first three years after the grant date. On at July 31, 2022, the Company had 2,195,909 vested RSUs. Deferred Share Units ("DSUs") Under the Omnibus Plan, the Board of Directors is authorized to issue DSUs (in conjunction with all share-based compensation) up to 10% of the issued and outstanding common shares, net of the outstanding share-based awards. At the time of issuance, the Board of Directors establishes conversion values and expiry dates, which are up to 10 years from the date of issuance. The deferral criteria of the units are at the discretion of the Board of Directors and from time to time may be inclusive of Company based performance restrictions, employee-based performance restrictions or no restrictions to the units. The following table summarizes DSU activity during the years ended July 31, 2022 and July 31, 2021. July 31, 2022 July 31, 2021 Units Value of units Units Value of units Opening balance - $ - - $ - Granted 4,088,386 0.72 - - Closing balance 4,088,386 $ 0.24 - $ - All DSUs have been issued to directors of the Company and fully vest upon the termination of their tenure as directors. On July 31, 2022, there were no vested DSUs. Share-based Compensation Share-based compensation is measured at fair value at the date of grant and are expensed over the vesting period. In determining the amount of share-based compensation, the Company used the Black-Scholes-Merton option pricing model to establish the fair value of stock options and RSUs granted at the grant date by applying the following assumptions: July 31, 2022 July 31, 2021 Exercise price (weighted average) $ 6.84 $ 17.03 Share price (weighted average) $ 6.69 $ 17.19 Risk-free interest rate (weighted average) 0.98% 1.24% Expected life (years) of options (weighted average) 5 5 Expected annualized volatility (weighted average) 93% 85% Volatility was estimated using the average historical volatility of the Company and comparable companies in the industry that have trading history and volatility history. For the year ended July 31, 2022, the Company allocated $211 in share-based compensation to inventory (July 31, 2021 - $1,506). The cash-settled share-based compensation liability is presented in Other liabilities. The following table summarizes the Company's equity-settled and cash-settled share- based payments for the years ended July 31, 2022 and 2021. July 31, 2022 July 31, 2021 $ $ Stock option share-based compensation 13,506 12,863 RSU share-based compensation - 287 Total share-based compensation 13,506 13,150 RSU cash-settled compensation (189 ) 127 DSU cash-settled compensation 1,079 - Total cash-settled compensation 890 127 |
Net Loss per Share
Net Loss per Share | 12 Months Ended |
Jul. 31, 2022 | |
Earnings per share [abstract] | |
Net Loss per Share | 26. The following securities could potentially dilute basic net loss per share in the future but have not been included in diluted loss per share because their effect was anti-dilutive: Instrument July 31, 2022 July 31, 2021 Stock options 24,687,068 12,018,143 RSUs 2,033,267 550,832 DSUs 4,088,386 - Acquired and reissued warrants 7,040,209 5,747,487 2019 June financing warrants 546,135 546,135 US$25m registered direct offering warrants 1,871,259 1,871,259 US$20m registered direct offering warrants 1,497,007 1,497,007 2020 April underwritten public offering warrants 11,830,075 11,830,075 2020 May underwritten public offering warrants 7,591,876 7,591,876 2021 August underwritten public offering warrants 24,540,012 - Warrants issued under conversion of debentures 4,665,628 4,665,628 Joint venture issued warrants - 2,875,000 Convertible debenture broker/finder warrants 15 42,491 Senior secured convertible note - 92,668,816 Amended senior secured convertible note 556,882,200 - 647,273,137 141,904,749 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments | 27. Market Risk Interest Risk The Company has minimal exposure to interest rate risk related to the investment of cash, cash equivalents and restricted cash. The Company may, from time to time, invest cash in highly liquid investments with short terms to maturity that would accumulate interest at prevailing rates for such investments. As at July 31, 2022, the Company has $210,379 of outstanding principle on the amended and reassigned senior secured convertible note (Note 20) bearing interest of 5% per annum, paid semi-annually. The amended and reassigned senior secured convertible note bears a fixed interest rate and therefore are not subject to interest risk. Price Risk Price risk is the risk of variability in fair value due to movements in equity or market prices. Financial liabilities During the year ended July 31, 2022 the Company amended and reassigned the Senior secured convertible note (Note 19) from HTI to Tilray (Note 20). One aspect of this debt restructuring is the elimination of the optional redemption feature providing the Company with relief from the risk of forced cash-settlements under the Senior secured convertible note. The sensitivity of the Amended senior secured convertible note due to price risk is disclosed in Note 20. If the fair value of these financial assets and liabilities were to increase or decrease by 10% the Company would incur a related net increase or decrease to Comprehensive loss of an estimated $22,335 (July 31, 2021 – $37,100). The following table presents the Company’s price risk exposure as at July 31, 2022 and July 31, 2021. July 31, 2022 July 31, 2021 $ $ Financial assets 504 2,492 Financial liabilities (211,096 ) (373,432 ) Total exposure (210,592 ) (370,940 ) Credit Risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company's cash held in escrow, restricted cash and trade receivables. As at July 31, 2022, the Company was exposed to credit related losses in the event of non-performance by the counterparties. The Company provides credit to its customers in the normal course of business and has established credit evaluation and monitoring processes to mitigate credit risk. Since the majority of the medical sales are transacted with clients that are covered under various insurance programs, and adult use sales are transacted with crown corporations, the Company has limited credit risk. Cash and cash equivalents, restricted funds and cash held in escrow are held with three Canadian commercial banks that hold Dun & Bradstreet credit ratings of AA (July 31, 2021 – AA) and an American commercial bank with a credit rating of A-. Certain restricted funds in the amount of $29,994 are managed by an insurer and are held as a cell captive within a Bermuda based private institution which does not have a publicly available credit rating; however the utilized custodian is Citibank which holds a credit rating of A+. Subsequent to July 31, 2022, management entered into a new directors and officers insurance program which released the $29,994 from restricted funds. The majority of the trade receivables balance is held with crown corporations of Quebec, Ontario and Alberta. Creditworthiness of a counterparty is evaluated prior to the granting of credit. The Company has estimated the expected credit loss using a lifetime credit loss approach. The current expected credit loss at July 31, 2022 is $1,927 (July 31, 2021 – $66). In measuring the expected credit losses, the adult-use cannabis trade receivables have been assessed on a per customer basis as they consist of a low number of material contracts. Medical trade receivables have been assessed collectively as they have similar credit risk characteristics. They have been grouped based on the days past due. The carrying amount of cash and cash equivalents, restricted cash and trade receivables represents the maximum exposure to credit risk and as at July 31, 2022 and amounted to $158,461 (July 31, 2021 - $522,908). During the year ended July 31, 2022 the Company fully utilized the July 31, 2021 cash held in escrow balance to partially fund the acquisition of Redecan (Note 15). The following table summarizes the Company's aging of trade receivables as at July 31, 2022 and July 31, 2021: July 31, July 31, 2022 2021 $ $ 0-30 days 24,661 22,971 31-60 days 11,808 12,390 61-90 days 2,177 1,435 Over 90 days 4,353 625 Total 42,999 37,421 Economic Dependence Risk Economic dependence risk is the risk of reliance upon a select number of customers, which significantly impacts the financial performance of the Company. For the year ended July 31, 2022, the Company's recorded sales to the crown corporations; Société québécoise du cannabis ("SQDC") the Ontario Cannabis Store ("OCS") and the Alberta Gaming, Liquor and Cannabis agency ("AGLC") representing 17%, 30% and 15%, respectively (July 31, 2021 - SQDC, OCS and AGLC representing 42%, 20% and 14%, respectively) of total applicable periods net cannabis sales. The Company holds trade receivables from the crown corporations OCS and the AGLC representing 42% and 23%, respectively, of total trade receivables as at July 31, 2022 (July 31, 2021 - the three crown corporations SQDC, OCS and AGLC representing 13%, 29% and 13% of total trade receivables, respectively). Liquidity Risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they come due (See Note 2 - Going Concern). The Company manages liquidity risk by reviewing on an ongoing basis, its working capital requirements. As at July 31, 2022, the Company has $83,238 (July 31, 2021 - $67,462) of cash and cash equivalents and $42,999 (July 31, 2021 - $37,421) in trade receivables. The Company has current liabilities of $335,076 (July 31, 2021 - $503,638) on the statement of financial position. As well, the Company has remaining contractual commitments of $44,147 due before July 31, 2023. Current financial liabilities include the Company's obligation on the Amended senior secured convertible note. As stated in Note 2, the Company has amended and reassigned the senior note to Tilray resulted in the extension of the notes maturity by 36-months and as well as removing the optional redemptions clauses of the previous note. The notes are classified as current due to the noteholders ability to convert the note into equity at any time during the life of the note, and therefore does not reflect a cash based current liability as at July 31, 2022. The following table provides an analysis of undiscounted contractual maturities for financial liabilities. Fiscal year 2023 2024 2025 2026 2027 Thereafter Total $ $ $ $ $ $ $ Accounts payable and accrued liabilities 72,581 - - - - - 72,581 Excise taxes payable 6,421 - - - - - 6,421 Convertible debentures (Note 18) 40,431 - - - - - 40,431 Undiscounted lease payments (Note 21) 1,026 587 587 150 150 1,200 3,700 120,459 587 587 150 150 1,200 123,133 Amended senior secured convertible note (Note 20) 34,176 34,176 34,176 250,270 - - 352,798 Total 154,635 34,763 34,763 250,420 150 1,200 475,931 Foreign Currency Risk On July 31, 2022, the Company holds certain financial assets and liabilities denominated in United States Dollars which consist of cash and cash equivalents, restricted funds, the senior secured convertible note and warrant liabilities. The Company does not currently use foreign exchange contracts to hedge its exposure of its foreign currency cash flows as management has determined that this risk is not significant. The Company closely monitors relevant economic information to minimize its net exposure to foreign currency risk. The Company is exposed to unrealized foreign exchange risk through its cash and cash equivalents. As at July 31, 2022, approximately $104,215 (US$81,266) (July 31, 2021 - $434,838 (US$348,931)) of the Company's cash and cash equivalents was in US$. A 1% change in the foreign exchange rate would result in a change of $1,042 to the unrealized gain or loss on foreign exchange or on the gain or loss on financial instrument revaluation of US$ denominated warrants. The Company's Amended senior secured convertible note is denominated in US$. The note bears an interest rate of 5%, payable in cash on a semi-annual basis. The sensitivity of the Amended senior secured convertible note due to foreign currency risk is disclosed in Note 20. As of the date of this report, the Company remains in the process of executing the Equity line of credit agreement with KOAS, which will provide the Company access to $5 million monthly, up to $180 million over a 36-month period, of which 60% is to be utilized towards the settlement of the Amended senior secured convertible note. |
Operating Expenses by Nature
Operating Expenses by Nature | 12 Months Ended |
Jul. 31, 2022 | |
Expenses by nature [abstract] | |
Operating Expenses by Nature | 28. The following table disaggregates the selling, general and administrative expenses as presented on the Statement of Loss and Comprehensive Loss into specified classifications based upon their nature: For the year ended July 31, 2022 July 31, 2021 $ $ Salaries and benefits 22,628 21,116 General and administrative 32,914 20,730 Professional fees 22,837 11,962 Consulting 6,537 4,379 Total 84,916 58,187 The following table summarizes the total payroll related wages and benefits by nature in the period: For the year ended July 31, 2022 July 31, 2021 $ $ General and administrative related wages and benefits 22,628 21,116 Marketing and promotion related wages and benefits 6,959 5,543 Research and development related wages and benefits 2,034 2,706 Total operating expense related wages and benefits 31,621 29,365 Wages and benefits capitalized to inventory 31,041 14,993 Total wages and benefits 62,662 44,358 |
Other Income and Losses
Other Income and Losses | 12 Months Ended |
Jul. 31, 2022 | |
Other Income And Losses [Abstract] | |
Other Income and Losses | 29. For the year ended July 31, 2022 July 31, 2021 $ $ Interest and financing expenses (20,073 ) (32,124 ) Interest income 1,651 1,601 Net gain on extinguishment of debt (Note 19) 20,534 - Finance income (expense), net 2,112 (30,523 ) Revaluation of warrant liabilities 44,271 (2,283 ) Share of loss from investment in associates and joint ventures (9,157 ) (6,505 ) Fair value gain/(loss) on convertible debenture - 1,260 Fair value (loss)/gain on senior secured convertible note (45,820 ) 1,751 Amortization of day 1 loss (Note 19) (86,974 ) (9,229 ) Gain on sale of interest in BCI (Note 10) 9,127 - (Loss)/gain on investments (716 ) 1,994 N 25,009 - Foreign exchange gain/(loss) (666 ) 9,108 Other income 18,118 4,763 Non-operating income (expense), net (46,808 ) 859 |
Related Party Disclosure
Related Party Disclosure | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of transactions between related parties [abstract] | |
Related Party Disclosure | 30. Related Party Disclosure Compensation of Key Management Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the Company's operations, directly or indirectly. The key management personnel of the Company are the members of the executive management team and Board of Directors. Compensation provided to key management during the year was as follows: For the year ended July 31, 2022 July 31, 2021 $ $ Salary and/or consulting fees 2,520 2,321 Termination benefits 1 10,914 1,008 Bonus compensation 1,400 800 Stock-based compensation 7,051 6,800 Total 21,285 10,929 1 These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed by the related parties. Related Parties and Transactions Belleville Complex Inc. The Company held a 25% interest in Belleville Complex Inc. (“BCI”) with the related party Olegna Holdings Inc. (“Olegna”), a company owned and controlled by a director of the Company, holding the remaining 75% in BCI. On January 18, 2022, the Company sold its 25% interest in BCI to the related party partner Olegna for net proceeds of $10,111 which were immediately used to partially repay the February 2022 optional redemption. On July 31, 2022, the Company terminated the lease with Olegna. The Company previously leased the facility as a 15-year anchor tenant from a related party (Note 21). Under the lease surrender terms the Company incurred a penalty fee of $2,380 payable on July 31, 2022. Initial consideration for the 25% interest on the joint venture was deemed $nil, the carrying value of BCI at disposal was $984 and therefore as a result of the above transaction the Company recognized a gain on sale of $9,127, recognized in other income and losses during the year ended July 31, 2022. Under this lease arrangement, the Company incurred $5,436 in lease and operating expenses during the year ended July 31, 2022 (July 31, 2021 - $5,369). This lease liability is recognized on the Company's balance sheet under IFRS 16 (Note 21). Truss LP The Company owns a 42.5% interest in Truss LP and accounts for the interest as an investment in an associate (Note 11). The Company subleased a section of its Belleville lease to Truss LP up to July 31, 2022, at which time the sublease was terminated (Note 21). Under a Temporary Supply and Services Agreement (“TSSA”) with Truss LP, the Company produced, and packaged cannabis infused beverages in the Cannabis Infused Beverage (“CIB”) Facility (located at the Belleville facility) and in the Gatineau Facility. The Company continues to market and sell beverages for the adult-use markets in Canada, in each case subject to the terms of its regulatory approvals and applicable laws. On October 1, 2021, Truss LP received a cannabis manufacturing and processing license under the Cannabis Act (Canada) and commenced manufacturing by producing CIBs within the Belleville facility. Under a new arrangement and until Truss LP operationalizes is cannabis selling license, the Company purchases the manufactured goods from Truss LP and sells the beverages through to third parties, as a principal in the arrangement. Truss LP received its license for the selling of cannabis on May 2, 2022, however, they have not enabled the license to be utilized and have no ability to sell to their customers. Truss LP is expected to operationalize its license in fiscal year 2023. For the period ended July 31, 2022, the Company continues to act as the principal in the arrangement. During the year ended July 31, 2022, the Company purchased $912 (July 31, 2021 - $7,624) of raw materials from Truss LP under the previous TSSA arrangement and $14,308 (July 31, 2021 - $nil) of manufactured products under the new arrangement. |
Capital Management
Capital Management | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Capital Management [Abstract] | |
Capital Management | 31. The Company's objectives when managing capital is to safeguard their ability to continue as a going concern, so that they can provide returns for shareholders and reach cashflow positivity. Management defines capital as the Company's shareholders' equity. The Board of Directors does not establish quantitative return on capital criteria for management. The Company has not paid any dividends to its shareholders. The Company is not subject to any externally imposed capital requirements other than the covenants related to the Company's debt instruments as set out in Notes 17 and 18. As at July 31, 2022, total managed capital was $313,692 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Commitments And Contingencies [Abstract] | |
Commitments and Contingencies | 32. COMMITMENTS The Company has certain contractual financial obligations related to service agreements, purchase agreements, rental agreements and construction contracts. Some of these contracts have optional renewal terms that the Company may exercise at its option. The annual minimum payments payable under these obligations over the next five fiscal years and thereafter are as follows: $ July 31, 2023 44,147 July 31, 2024 24,536 July 31, 2025 26,448 July 31, 2026 23,326 July 31, 2027 11,771 Thereafter 1,200 131,428 See Note 21 for recognized contractual commitments regarding the Company's lease obligations under IFRS 16. LETTERS OF CREDIT The Company holds a five-year letter of credit with a Canadian financial institution to provide a maximum of $250 that amortizes $50 annually until its expiry on July 14, 2024. As at July 31, 2022, the remaining balance of the letter of credit is $150, was not drawn upon and is secured by cash held in collateral (Note 6). On August 1, 2020, the Company reissued a pre-existing letter of credit with a Canadian financial institution under an agreement with a public utility provider entitling the utility provider to a maximum of $2,581, subject to certain operational requirements. The letter of credit has a one-year expiry from the date of issuance with an auto renewal feature. During the year ended July 31, 2022, the letter of credit was amortized to $2,080. The letter of credit has not been drawn upon as at July 31, 2022. The letter of credit is secured by cash held in collateral (Note 5). CONTINGENCIES The Company may be, from time to time, subject to various administrative and other legal proceedings. Contingent liabilities associated with legal proceedings are recorded when a liability is probable, and the contingent liability can be reasonably estimated. While the following matters are ongoing, the Company disputes the allegations and intends to continue to vigorously defend against the claims. A s of July 31, 2022, the Company and its former Chief Executive Officer are defendants in a putative class-action lawsuit pending in the Québec Superior Court brought on behalf of certain purchasers of shares of the Company and filed on November 19, 2019. The lawsuit asserts causes of action for misrepresentations under the Québec Securities Act and the Civil Code of Québec in connection with certain statements contained in HEXO’s prospectus, public documents and public oral statements between April 11, 2018 and March 27, 2020. The allegations relate to: (1) statements made by the Company regarding its agreement with the Province of Québec to supply cannabis; (2) statements made by the Company regarding its acquisition of Newstrike, particularly the licensing of the Newstrike facilities and the forecasted synergies and/savings from the Newstrike acquisition; (3) statements made by the Company about the net revenues in Q4 2019 and fiscal year 2020; and (4) HEXO’s management of its inventories. The plaintiffs seek to represent a class comprised of Québec residents who acquired the Company’s securities either in an Offering (primary market) or on the secondary market during such period and seek compensatory damages for all monetary losses and costs. The amount claimed for damages has not been quantified and no accrual has been made as at July 31, 2022 (July 31, 2021 - $nil) . As of July 31, 2022, the Company is named as a defendant in a proposed consumer protection class action filed on June 16, 2020, in the Court of Queens' Bench in Alberta on behalf of residents of Canada who purchased cannabis products over specified periods of time. Several other licensed producers are also named as co-defendants in the action. The lawsuit asserts causes of action, including for breach of contract and breach of consumer protection legislation, arising out of allegations that the Tetrahydrocannabinol (THC) or Cannabidiol (CBD) content of medicinal and recreational cannabis products sold by the Company and the other defendants to consumers was different from what was advertised on the products' labels. Many of the cannabis products sold by the Company and other defendants were allegedly sold to consumers in containers using plastic bottles or caps that may have rapidly absorbed or degraded the THC or CBD content within them. By allegedly over-representing the true amount of THC or CBD in the products, the plaintiff claims that consumers would be required to consume substantially more product than they otherwise would have in order to obtain the desired effects or, in the alternative, would have consumed the product without obtaining the desired effects. The action has not yet been certified as a class action. ONEROUS CONTRACT During the year ended July 31, 2020, the Company recognized a $4,763 onerous contract provision related to a fixed price supply agreement for the supply of certain cannabis products. The costs and purchase obligations under the contract exceed the economic benefits expected to be received. The related loss was realized in operating expenses in the year ended July 31, 2020. On July 25, 2022, the Company received a judgment from the court awarding the claim to the counterparty. In response, management has initiated an appeal from the decision and, as a result, the onerous contract liability remains as at July 31, 2022. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Fair Value Of Financial Instruments Explanatory [Abstract] | |
Fair Value of Financial Instruments | 33. The fair values of the financial instruments as at July 31, 2022 are summarized in the following table: Amortized cost FVTPL Total Assets $ $ $ Cash and cash equivalents 83,238 - 83,238 Restricted funds 32,224 - 32,224 Long - term investments - 504 504 Liabilities $ $ $ Warrant liability - 717 717 Convertible debt 38,301 - 38,301 Amended senior secured convertible note - 223,132 223,132 Other long-term liabilities 1 - 1,409 1,409 1 The fair values of the financial instruments as at July 31, 2021 are summarized in the following table: Amortized cost FVTPL Total Assets $ $ $ Cash and cash equivalents 67,462 - 67,462 Restricted funds 132,246 - 132,246 Long - term investments - 2,492 2,492 Liabilities $ $ $ Warrant liability - 5,733 5,733 Convertible debt - current 3,406 - 3,406 Convertible debt 33,089 - 33,089 Senior secured convertible note - current - 367,699 367,699 Senior notes payable - current 50,159 - 50,159 Other long-term liabilities 1 - 520 520 1 The carrying values of cash and cash equivalents, restricted funds, cash held in escrow, short term investments, trade and other receivables, lease receivables, accounts payable and accrued liabilities, lease liabilities and term loan approximate their fair values due to their relatively short periods to maturity. |
Non-Controlling Interest
Non-Controlling Interest | 12 Months Ended |
Jul. 31, 2022 | |
Non Controlling Interest [Abstract] | |
Non-Controlling Interest | 34. The change in non-controlling interests is as follows. July 31, 2022 July 31, 2021 $ $ Balance, Beginning of year 1,987 3,379 Non-controlling interest acquired on business combination - (1,340 ) Partnership contributions 2,308 81 Share of comprehensive loss for the period (6,017 ) (133 ) Loss of control 1,722 - Balance, End of year - 1,987 Keystone Isolation Technology Inc The Company held a 60% interest in Keystone Isolation Technology Inc. ("KIT") which was intended to principally operate out of Belleville Facility, and the remaining 40% represents the non-controlling interest held by Chroma Global Technologies Ltd. During the year ended July 31, 2022, management terminated the KIT project and the associated assets were impaired (Note 12). On June 22, 2022, the Company disposed of its investment in KIT for a nominal amount. KIT had no revenues or other expenses during the year ended July 31, 2022 or the year ended July 31, 2021. The following table is the summarized financial information of Keystone Isolation Technology Inc. July 31, 2022 July 31, 2021 $ $ Current assets - - Non-current assets - 8,651 Current liabilities - - Non-current liabilities - - Impairment ( 4,504 ) - Non-controlling interest (%) 40% 40% Non-controlling interest - 3,460 ZenPharm Limited The Company's 60% interest in ZenPharm Limited ("ZenPharm") was obtained through the acquisition of Zenabis on June 1, 2021. ZenPharm was formed to service the European medical cannabis market. On June 17, 2022, the Company lost of control of Zenabis and by extension the interest in ZenPharm (Note 15). |
Revenue from Sale of Goods
Revenue from Sale of Goods | 12 Months Ended |
Jul. 31, 2022 | |
Revenue [abstract] | |
Revenue from Sale of Goods | 35. The Company disaggregated its revenues from the sale of goods between sales of cannabis beverages ("Cannabis beverage sales") and dried flower, vapes, and other cannabis products ("Cannabis sales excluding beverages"). The Company's cannabis beverage sales are derived from the CIB division, which was established in order to manufacture, produce and sell cannabis beverage products. The CIB division operated under the Company’s cannabis manufacturing licensing, in compliance with Health Canada and the Cannabis Act’s regulations until Truss LP received its cannabis manufacturing license on October 1, 2021 (Note 30) and its selling license on May 2, 2022. The Company continues to act as a principal in the sale of CIBs to customers and therefore, continues to present revenue from CIB on a gross basis. The Company expects to continue to recognize CIB revenue on a gross basis at least until Truss LP operationalizes its cannabis selling license. For the year ended July 31, 2022 July 31, 2021 Revenue stream Cannabis sales Cannabis Total Cannabis sales Cannabis Total $ $ $ $ $ $ Retail 211,744 16,369 228,113 143,098 15,821 158,919 Medical 3,395 - 3,395 1,769 - 1,769 Wholesale 13,538 - 13,538 2,458 - 2,458 International 20,372 - 20,372 9,935 - 9,935 Total revenue from sale of goods 249,049 16,369 265,418 157,260 15,821 173,081 During the year ended July 31, 2022 the Company incurred $6,059 (July 31, 2021 - $3,736) of net sales provisions and price concessions. |
Segmented Information
Segmented Information | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of operating segments [abstract] | |
Segmented Information | 36. Segmented Information The Company operates under one material operating segment. Substantially all property, plant and equipment and intangible assets are located in Canada. |
Operating Cash Flow Supplement
Operating Cash Flow Supplement | 12 Months Ended |
Jul. 31, 2022 | |
Operating Cash Flow [Abstract] | |
Operating Cash Flow Supplement | 37. The following items comprise the Company's operating cash flow activity for the periods herein. For the year ended July 31, 2022 July 31,2021 $ $ Items not affecting cash Depreciation of property, plant and equipment 7,428 6,097 Depreciation of property, plant and equipment in cost of sales 20,868 8,601 Amortization of intangible assets 21,347 2,050 Loss on convertible debentures 131,602 6,218 Unrealized gain on changes in fair value of biological assets (59,665 ) (51,499 ) Unrealized fair value adjustment on investments 747 (1,994 ) Amortization of deferred financing costs - 793 Interest and other income 14,347 5,837 Accretion of convertible debenture 5,167 4,075 Non-cash finance and transaction fees 5,190 21,690 License depreciation and prepaid royalty expenses - 118 Write-off of inventory and biological assets 14,297 2,182 Write down of inventory to net realizable value 99,739 2,927 Realized fair value amounts on inventory sold 43,455 31,767 Loss from investment in associate and joint ventures 9,157 6,505 Share-based compensation 14,607 14,859 Revaluation of financial instruments (gain)/loss (44,271 ) 2,283 Net gain on extinguishment of debt (28,321 ) - Impairment losses 790,981 20,230 Loss on long lived assets and disposal of property, plant and equipment (2,466 ) 1,358 Net gain on loss of control of subsidiary (25,009 ) - Gain on sale of BCI (9,127 ) - Gain on exit of lease (17,189 ) (789 ) Foreign exchange gain 7,418 (11,648 ) Total items not affecting cash 1,000,302 71,660 Changes in non-cash operating working capital items Trade receivables 825 (14,203 ) Commodity taxes recoverable and other receivables 3,963 5,197 Prepaid expenses 6,514 (106 ) Lease receivable 27 - Inventory (81,571 ) (52,539 ) Biological assets 57,688 53,678 Accounts payable and accrued liabilities 10,317 8,848 Excise taxes payable (1,951 ) (444 ) Income tax recoverable (379 ) - Total non-cash operating working capital (4,567 ) 431 Additional supplementary cash flow information is as follows: For the year ended July 31, 2022 July 31, 2021 $ $ Property, plant and equipment in accounts payable 1,292 1,152 Right-of-use asset additions 1,993 17,059 Capitalized borrowing costs - 1,269 Interest paid 8,306 5,618 |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2022 | |
Income taxes paid (refund) [abstract] | |
Income Taxes | 38. Income tax expense recognized in comprehensive loss consists of the following components: July 31, 2022 July 31, 2021 $ $ Current tax for the year 89 22 Adjustments of previous years ( 80 ) - Total 9 22 Components of deferred income tax expense (recovery): July 31, 2022 July 31, 2021 $ $ Origination and reversal of temporary differences (215,230 ) (14,659 ) Difference between statutory tax rate and deferred tax rate 4,843 (249 ) Change in temporary difference for which no deferred tax assets are recorded 171,565 14,489 Deferred income tax (recovery) (38,822 ) (419 ) The Company's expected tax rate is different from the combined federal and provincial income tax rate in Canada. These differences result from the following elements: July 31, 2022 July 31, 2021 Expected tax rate 26.50% 26.50% $ $ Earnings before income taxes (1,112,421 ) (115,159 ) Expected tax benefit resulting from loss (294,791 ) (30,517 ) Adjustments for the following items: Tax rate differences 4,843 (652 ) Permanent differences 96,743 8,696 Change in temporary differences for which no tax assets are recorded 154,392 22,076 (38,813 ) (397 ) The following is a reconciliation of the deferred tax assets and liabilities recognized by the Company: Opening Recognized Business Recognized Business Ending August 1, 2021 in income Combination in equity Deconsolidation July 31, 2022 $ $ $ $ $ $ Taxable temporary differences (5,017 ) 7,944 (7,001 ) (6,825 ) 3,254 (7,645 ) Biological assets (606 ) ( 472 ) ( 1,974 ) - - (3,052 ) Inventory (10,850 ) 3,342 (4,185 ) - 10,039 (1,654 ) Loss carryforward 28,693 ( 5,027 ) 4,248 - (22,974 ) 4,940 Financing costs - (337 ) 337 - - - Intangible assets (12,356 ) 33,372 (52,278 ) - 9,828 (21,434 ) Net deferred tax asset (liability) (136 ) 38,822 (60,853 ) (6,825 ) 147 (28,845 ) Opening Recognize Business Recognized in Ending August 1, 2020 in income Combination equity July 31, 2021 $ $ $ $ $ Taxable temporary differences 10,415 (14,701 ) (310 ) (421 ) (5,017 ) Biological assets (1,330 ) 724 - - (606 ) Inventory (5,088 ) 1,514 (7,276 ) - (10,850 ) Loss carryforward - 14,028 14,665 - 28,693 Financing costs - (2,738 ) 2,738 - - Intangible assets (3,997 ) 1,592 (9,951 ) - (12,356 ) Net deferred tax asset (liability) - 419 (134 ) (421 ) (136 ) Deferred income taxes reflect the impact of loss carryforwards and of temporary differences between amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. At July 31, 2022 deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized are attributable to the following: July 31, 2022 July 31, 2021 $ $ Deductible temporary differences 26,952 11,556 Taxable temporary differences - 26,444 Investments 288,958 17,030 Losses carried forward 594,890 278,115 Research and development expenditures 3,148 1,817 Fixed Assets, intangibles and other assets 243,665 114,384 Financing costs 38,313 40,401 1,195,926 489,747 The Company has approximated non-capital losses available to reduce future years' federal and provincial taxable income which expires as follows: $ 2023 - 2024 - 2025 - 2026 - 2027 - 2028 946 2029 75 2030 2,867 2031 3,018 2032 2,489 2033 820 2034 2,240 2035 10,687 2036 23,807 2037 30,477 2038 8,028 2039 71,455 2040 148,402 2041 63,097 2042 232,499 Indefinite 5,637 606,544 |
Significant Accounting Polici_2
Significant Accounting Policies and Pronouncements (Policies) | 12 Months Ended |
Jul. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
CASH AND CASH EQUIVALENTS | (a) CASH AND CASH EQUIVALENTS Cash and cash equivalents are comprised of cash and highly liquid investments that are readily convertible into known amounts of cash with original maturities of three months or less. |
RESTRICTED FUNDS | (b) RESTRICTED FUNDS Restricted funds represent cash that is pledged as collateral or guarantees for certain of the Company's projects, obligations, and agreements. Funds related to the Company’s captive insurance program are included in restricted funds. Captive Insurance is coverage for the Company’s directors and officers that has been secured through a Captive Cell program (“the Captive Program”). The Captive Program was affected by entering into a participation agreement with a registered insurer for the purposes of holding and managing the Company’s coverage funds through a separate cell account (the “Cell Captive”). Captive Program funds are held as cash in the Cell Captive with the possibility of reinvestment into short-term investments and/or marketable securities in the future. The Company recognizes gains and losses from, interest, foreign exchange activity and/or fair market value adjustments through the Statement of Net Loss and Comprehensive Loss. The Captive Program was discontinued subsequent to July 31, 2022. |
CASH HELD IN ESCROW | (c) CASH HELD IN ESCROW Cash held in escrow is cash that is held by independent escrow agents to fund future acquisitions but restricted by certain release conditions. |
TRADE RECEIVABLES | (d) TRADE RECEIVABLES Trade receivables are recognized initially at the amount of consideration that is unconditional, unless they contain significant financing components when they are recognized at fair value. Trade receivables are subsequently measured at amortized cost using the effective interest method, less allowance for expected credit losses, which the Company estimates on the basis of historical collection rates and observable changes in credit risk. |
COMMODITY TAX RECOVERABLES & OTHER RECEIVABLES | (e) COMMODITY TAX RECOVERABLES & OTHER RECEIVABLES Commodity tax recoverable and other receivables are initially measured at fair value and subsequently measured at amortized cost, less any provisions for impairment. |
BIOLOGICAL ASSETS | (f) BIOLOGICAL ASSETS The Company measures biological assets consisting of cannabis plants using the income approach at fair value less costs to sell at the point of harvest, which becomes the basis for the cost of related inventories after harvest. The Company capitalizes all the direct and indirect costs as incurred related to the biological transformation of the biological assets between the point of initial recognition and the point of harvest including labour related costs (including share-based compensation), grow consumables, materials, utilities, facilities costs, depreciation, overhead, quality and testing costs. The identified capitalized direct and indirect costs of biological assets are subsequently recorded within the line item 'costs of goods sold' on the statement of loss and comprehensive loss in the period that the related product is sold. Unrealized gains or losses arising from changes in fair value less cost to sell during the period are included in the results of operations and presented on a separate line of statement of comprehensive loss of the related period. |
INVENTORY | (g) INVENTORY Inventory is valued at the lower of cost and net realizable value. Cost is determined using the weighted average method. Inventories of harvested cannabis ("Dried cannabis") are transferred from biological assets at their fair value at harvest, which becomes the initial deemed cost of the inventory. Any subsequent post-harvest costs are capitalized to inventory to the extent that cost is less than net realizable value. Subsequent costs include materials, overhead, depreciation, amortization, and labour related costs (including share-based compensation) involved in packaging and quality assurance. The identified capitalized direct and indirect costs related to inventory are subsequently recorded within 'cost of goods sold' on the statement of loss and comprehensive loss at the time the product is sold, with the exclusion of realized fair value amounts included in inventory sold which are recorded as a separate line within gross profit. Net realizable value is determined as the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Packaging and supplies are initially valued at cost and subsequently at the lower of cost and net realizable value. |
PROPERTY, PLANT AND EQUIPMENT | (h) PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment is measured at cost less accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. Construction in progress is transferred to a depreciable asset class property, plant and equipment when the assets are available for use and depreciation of the assets commences at that point. Depreciation is provided using the following terms and methods: Asset Method Term Land Not depreciated No term Buildings Straight line 5 to 20 years Leasehold improvements Straight line lease term Furniture and equipment Straight line 5 years Cultivation and production equipment Straight line 5 to 20 years Vehicles Straight line 5 years Computers Straight line 3 years An asset's residual value and useful life are reviewed at each reporting date and adjusted if appropriate. When parts of an item of equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Gains and losses on disposal of an item of equipment are determined by comparing the proceeds from disposal with the carrying amount of the equipment and are recognized in profit or loss. |
INTANGIBLE ASSETS | (i) INTANGIBLE ASSETS Finite life intangible assets are measured at cost less accumulated amortization and accumulated impairment losses. Amortization is provided on a straight-line basis over the following terms: Asset Method Term Domain names Straight line 10 years Health Canada licenses Straight line 20 years Software Straight line 3-5 years Patents/Production Know-How Straight line 6-20 years Brands Straight line 3 years The estimated useful life is reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Research expenditure and development expenditure that do not meet the recognition criteria for intangible assets are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. The Company holds no intangible assets with an indefinite life. |
GOODWILL | (j) GOODWILL Goodwill is not amortized but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. Goodwill is allocated to cash-generating units ("CGUs") for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal management purposes, being the Company's single operating segment. |
IMPAIRMENT OF NON-FINANCIAL ASSETS | (k) IMPAIRMENT OF NON-FINANCIAL ASSETS Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset's or CGU's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal ("FVLCD") and value in use ("VIU"). For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (CGUs). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. The estimated useful life is reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Research expenditure and development expenditure that do not meet the recognition criteria for intangible assets are recognized as an expense as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. In assessing the VIU, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money to the Company and the risks specific to the asset. In determining FVLCD an appropriate valuation model is used. Where the carrying amount of a CGU exceeds its recoverable amount, the CGU is considered impaired and is written down to its recoverable amount. Any impairment loss is recorded in earnings and previously recognized impairment losses (excluding the impairment of Goodwill) are reversed or partially reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognized, in which case, the carrying amount of the asset is increased to its recoverable amount. The new carrying amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized. |
BUSINESS ACQUISITIONS | (l) BUSINESS ACQUISITIONS The acquisition method is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. Operating results are included in the consolidated financial statements as of the acquisition date. The consideration transferred for the acquisition comprises the: • • • • • Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, with the exceptions of leases under IFRS 16 and deferred taxes. The Company recognizes any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest's proportionate share of the acquired entity's net identifiable assets. The Company has one year from the acquisition date to finalize the estimates and assumptions that support the finalized fair value analysis and purchase price allocation. Until this time, these values reported are subject to change. Changes to fair values and allocations are retrospectively adjusted in subsequent periods. Acquisition-related costs are expensed as incurred and are presented under 'Acquisition and transaction costs' in the consolidated statements of loss and comprehensive loss. The excess of the consideration transferred, amount of any non-controlling interest in the acquired entity, and acquisition-date fair value of any previous equity interest in the acquired entity over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognized directly in profit or loss as a bargain purchase. Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity's incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value, with changes in fair value recognized in profit or loss. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in profit or loss. |
NON-CURRENT ASSETS (OR DISPOSAL GROUPS) HELD FOR SALE | (m) NON-CURRENT ASSETS (OR DISPOSAL GROUPS) HELD FOR SALE Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and contractual rights under insurance contracts, which are specifically exempt from this requirement. An impairment loss is recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognized for any subsequent increases in fair value less costs of disposal of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset (or disposal group) is recognized at the date of derecognition. Non-current assets (including those part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized. Non-current assets classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet. |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | (n) ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. Accounts payable and accrued liabilities are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method. |
REVENUE RECOGNITION | (o) REVENUE RECOGNITION Revenue from the direct sale of cannabis to customers for a fixed price is recognized when the Company transfers the control of the good(s) to the customer upon delivery and acceptance by the customer. The Company recognizes revenue in an amount that reflects the consideration which the Company expects to receive taking into account the impact which may arise from any rights of return on sales, price concessions or similar obligations. Net revenue is presented net of taxes, estimated returns, allowances and discounts. Canada Revenue Agency ("CRA") levies excise taxes on the sale of medical and adult-us cannabis products. The Company becomes liable for these excise duties when cannabis products are delivered to the customer. The excise taxes payable is the higher of (i) a flat-rate duty which is imposed when a cannabis product is packaged, and (ii) an ad valorem duty that is imposed when a cannabis product is delivered to the customer. Effective May 1, 2019, excise tax calculated on edible cannabis products, cannabis extracts and cannabis topicals will prospectively be calculated as a flat rate based on the quantity of total tetrahydrocannabinol (THC) contained in the final product. There were no changes in the legislation in calculating excise taxes for fresh cannabis, dried cannabis, seeds and plants. Net revenue from sale of goods, as presented on the statement of net loss, represents revenue from the sale of goods less applicable excise taxes. |
COST OF GOODS SOLD | (p) COST OF GOODS SOLD Cost of goods sold includes cost of inventory expensed, packaging costs, shipping costs and related labour. |
INCOME TAXES | (q) INCOME TAXES The income tax expense or recovery for the period is the tax payable on the current period's taxable income, based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax expense or recovery is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Company measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. |
SHARE-BASED COMPENSATION | (r) SHARE-BASED COMPENSATION The Company has an employee stock option plan. The Company measures equity settled share-based payments based on their fair value at the grant date and recognizes compensation expense over the vesting period based on the Company's estimate of equity instruments that will eventually vest. Forfeitures are adjusted for on an actual basis. The impact of the revision of the original estimate is recognized in profit or loss such that the cumulative expense reflects the revised estimate. For stock options granted to non-employees the compensation expense is measured at the fair value of goods and services received |
RESTRICTED SHARE UNITS ("RSU's") | (s) RESTRICTED SHARE UNITS ("RSU's") RSUs are cash or equity settled share-based payments granted to certain employees, directors and executives within the Company. RSUs are measured at their initial fair value on the date of the grant utilizing the Black- Scholes Merton model. The fair value of cash-settled RSUs is revalued at each period end and is recognized as share-based compensation expense over the vesting period with a corresponding adjustment to the liability. Upon the settlement of cash based RSUs, which are valued at the market value at the time of exercise, the related liability is transferred to share capital. The fair value of equity-settled RSUs are recognized in the share-based reserve at the grant date. Upon the settlement of equity-based payments, RSUs are settled in the form of common shares and the related share-based reserve is transferred to share capital. RSUs may be exercised for cash, equity or a combination of both at the discretion of the holder once vested as per the terms of the award grant. Amounts recorded for forfeited RSUs are transferred to contributed surplus in the year of forfeiture or expiry. |
DEFFERED SHARE UNITS | (t) DEFERRED SHARE UNITS ("DSU's") DSUs are cash or equity settled share-based payments granted to certain of the Company's directors. DSUs do not possess a vesting period but are rather dependent upon on certain conditions and/or events in order to vest. DSUs are measured at the market value on the date of grant. The fair value of cash-settled DSUs ais revalued at each period end and is recognized as share-based compensation over the period with a corresponding adjustment to the liability. Upon the settlement of cash-based DSUs, which are valued at the market value at the time of exercise, the related liability is transferred to share capital. The fair value of any equity-settled DSUs is to be recognized in the share-based reserve at the grant date. Upon the settlement of equity-based payments, DSUs are settled in the form of common shares and the related share-based reserve is transferred to share capital. DSUs may be exercised for cash, equity or a combination of both at the discretion of the holder once vested as per the terms of the award grant. Amounts recorded for forfeited DSUs are transferred to contributed surplus in the year of forfeiture or expiry. |
LOSS PER SHARE | (u) LOSS PER SHARE Loss per common share represents loss for the period attributable to common shareholders divided by the weighted average number of common shares outstanding during the year. Diluted loss per common share is calculated by dividing the applicable loss for the year by the sum of the weighted average number of common shares outstanding and all additional common shares that would have been outstanding if potentially dilutive common shares had been issued during the year. The calculation of diluted loss per share excludes the effects of various conversions and exercise of options and warrants that would be anti-dilutive. |
FINANCIAL INSTRUMENTS | (v) FINANCIAL INSTRUMENTS Financial assets and liabilities are recognized when the Company becomes a party to the contractual provision of the respective instrument. All financial assets and financial liabilities are initially measured at fair value, net of transaction costs, except for financial instruments classified as fair value through profit or loss ("FVTPL"), where transaction costs are recognized immediately in profit or loss. The Company classifies its financial assets in the following measurement categories: • • The classification depends on the Company’s business model for managing the financial assets and the contractual terms of the cash flows. The Company has made the following classifications: IFRS 9 Classification Financial assets Cash and cash equivalents Amortized cost Restricted funds Amortized cost Trade receivables Amortized cost Convertible debenture receivable FVTPL Long term investments FVTPL Financial liabilities Accounts payable and accrued liabilities Amortized cost Warrant liabilities FVTPL Convertible debentures Amortized cost Senior secured convertible note FVTPL Senior notes payable Amortized cost Lease liabilities Amortized cost Loans and borrowings Amortized cost (i) Fair Value Through Profit or Loss ("FVTPL") Financial Assets Financial assets classified and measured at FVTPL are those assets that do not meet the criteria to be classified at amortized cost or at FVOCI. This category includes debt instruments whose cash flow characteristics are not solely payments of principal and interest ("SPPI") or are not held within a business model whose objective is either to collect contractual cash flows, or to both collect contractual cash flows and sell the financial asset. (ii) Financial assets at amortized cost are non-derivative financial assets which are held within a business model whose objective is to hold assets to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. An amortized cost financial asset is initially measured at fair value, including transaction costs and subsequently at amortized cost using the effective interest rate. (iii) Financial assets, other than those classified at fair value through profit and loss, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. (iv) Financial liabilities are classified as either financial liabilities at FVTPL or other financial liabilities. Financial liabilities mandatory classified at FVTPL, such derivatives, are stated at fair value, with changes being recognized through the statements of net loss. Other financial liabilities are initially measured at fair value, net of transaction costs, and are subsequently measured at amortized cost using the effective interest method. The Senior secured convertible note (including the Amended senior secured convertible note) (the “Note”) was issued in currency other than the functional currency of the Company is classified entirely as liabilities. As the Note contains equity and non-equity embedded derivatives, it is designated at fair value through profit or loss on initial recognition when embedded features are not separated. The component of fair value changes relating to the Company’s own credit risk is recognized in other comprehensive loss. Amounts recorded in other comprehensive loss related to credit risk are not subject to recycling in profit or loss but are transferred to retained earnings when realized. Financial liabilities are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any noncash assets transferred or liabilities assumed, is recognized in the statement of net loss as other income (loss). Financial liabilities are classified as current when the Company does not retain an unconditional right to defer settlement, due to a conversion feature or otherwise, beyond 12 months from the reporting date. (v) Derivatives Derivatives are initially measured at fair value and are subsequently measured at FVTPL. If the transaction price does not equal to fair value at the point of initial recognition, management measures the fair value of each component of the investment and any unrealized gains or losses at inception are either recognized in profit or loss or initially unrecognized and recognized over the term of the investment, depending on whether the valuation inputs are based on observable market data. The resulting unrealized gain or loss at inception and subsequent changes in fair value are recognized in profit or loss for the period. Transaction costs, which are directly attributable to the acquisition of the investment, are expensed as incurred. (vi) The component parts of compound instruments (convertible debentures) issued by the Company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. A conversion option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Company’s own equity instruments is an equity instrument. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest rate method until extinguished upon conversion or at the instrument's maturity date. The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in equity and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity. No gain or loss is recognized in profit or loss upon conversion or expiration of the conversion option. Transaction costs that relate to the issuance of the convertible debentures are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognized directly in equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component and are amortized over the term of the convertible debentures using the effective interest method. For compound instruments with non-equity derivatives, the fair value of the embedded derivative is determined first based on the contractual terms, and the initial carrying amount of the host instrument is the residual amount after separating the embedded derivative. Fair value on initial recognition Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly observable or estimated using another valuation technique. If, after considering the terms of the transaction, the Company determines that the fair value of a financial instrument at initial recognition differs from the transaction price, the difference is recognized as a gain or loss in the statement of loss only if fair value is evidenced by quoted prices or based on a valuation technique that uses only data from observable markets. In all other cases, the difference is deferred and recognized systematically to the extent that it arises from a change in a factor (including time) that market participants would consider in setting a price. Any subsequent measurement of the instrument excludes the balance of the deferred day one gain or loss. |
FOREIGN CURRENCY TRANSLATION | (w) FOREIGN CURRENCY TRANSLATION Foreign currency transactions are translated into Canadian dollars at exchange rates in effect on the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the consolidated statement of financial position date are translated to Canadian dollars at the foreign exchange rate applicable at that date. Realized and unrealized exchange gains and losses are recognized through profit or loss. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Foreign Operations The assets and liabilities of foreign operations are translated to the presentation currency at exchange rates at the reporting date. The income and expenses of foreign operations are translated to the presentation currency using average exchange rates for the month during which the transactions occurred. Foreign currency differences are recognized in Other Comprehensive Loss in the Accumulated Other Comprehensive Loss account. |
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS | (x) SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Significant Accounting Judgements Impairment of non-financial assets Non-financial asset impairment tests require the allocation of assets to CGUs or CGU groups, which requires significant judgement and interpretation with respect to the integration between assets, the existence of active markets, similar exposure to market risks, shared resources and assets, and the way in which management monitors the operations. Non-financial asset impairment tests require the determination of whether there is an indication of impairment. The assessment of whether there is any indication of impairment is performed at the end of each reporting period, and requires the application of judgement, historical experience, and use of external and internal sources of information Revenue - Principal versus Agent The Company evaluated whether it is the principal (reports on gross basis) or agent (reports on a net basis) for revenues generated by the direct sale of cannabis infused beverages (“CIB’s). The Company control’s the CIB’s prior to the sale to its customers as regulated and mandated under the Cannabis Act and Health Canada legislation. Up until October 1, 2021, the Company’s control was evidenced by our sole ability to possess the CIB’s once the cannabis distillate has been added and thus establishing the inventory as a cannabis product requiring it to be held by a licensed producer. On October 1, 2021, Truss LP received its cannabis manufacturing and processing license under the Cannabis Act (Canada) and was therefore able to possess the cannabis-inclusive CIBs. Truss LP then received its cannabis selling license on May 2, 2022. However, as of July 31, 2022, Truss LP has not operationalized its cannabis selling license, and does not possess the ability to sell cannabis products to its customers. An arrangement remains in place in which the Company purchases the manufactured goods from Truss LP and sells the CIBs to third parties, as a principal in the arrangement. This is evidenced by the Company possessing the sole ability to monetize the sale of CIB’s through the sales agreements and purchase orders with customers. The Company therefore presents the revenues from the sale of CIBs on a gross basis. Senior secured convertible note Management used significant judgement to determine that the fair value of the Note on issuance did not equal the transaction price, which was attributed, among other things, to a premium paid as a result of the limited time available to close the financing required to secure the Redecan acquisition. The resulting difference between the transaction price and the fair value on initial recognition (the “Day 1 loss”) was deferred as the fair value of the Note is based on a valuation technique where not all the inputs are observable. The unrecognized Day 1 loss was recorded in the statement of net loss only to the extent that it arises from a change in factor that market participants would take into account when pricing the Note. The Company believes that time is such a factor specific to the Note and the Day 1 loss is recognized on a straight-line basis in the statement of net loss over the contractual life of the Note. Upon amendment of the Note on July 12 2022, the remaining value of the Day 1 loss was recognized in the statement of net loss. Amended senior secured convertible note Management used significant judgement in evaluating its rights and obligations under commercial agreements executed concurrently with amending and reassigning the senior secured convertible note to Tilray and in assessing the impact of these agreements on the contractual cash flows under the Amended senior secured convertible note. Where an unavoidable contractual obligation to deliver cash in the future was identified, management used financial contract combination guidance in accounting for the Amended senior secured convertible note. Loss of control of subsidiary On June 1, 2022, Zenabis filed a petition with the Superior Court of Québec for protection under the Companies’ Creditors Arrangement Act (“CCAA”) in order to restructure their business and financial affairs. Management applied judgement in assessing whether this event represented a loss of control of Zenabis. As a result of the CCAA filing, the most relevant activity of Zenabis became the settlement of the Zenabis Senior Note Payable through the sale of the business or its assets. On filing of CCAA, which included the a request for an order to approve a sale and investment solicitation process and to approve a stalking horse agreement of purchase and sale, management concluded that the Company ceased to have the power to direct the relevant activity of Zenabis because substantive rights were granted to other parties through the CCAA proceedings that restricted the decision making ability of the Company to the extent that the Company was unable to demonstrate power over Zenabis. As a result, the Company accounted for a loss in control and Zenabis was deconsolidated on June 17, 2022 (Note 15). Significant Accounting Estimates Valuation of Biological Assets In determining the fair value less costs to sell of biological assets, management is required to make a number of significant estimates, and assumptions, including estimating the expected yields for the cannabis plants, sales price and expected post-harvesting costs. A weighted average of current observable market sales prices for cannabis derived products, less costs to sell, is used to estimate the sales price input in the fair value less costs to sell model. Valuation of Inventory In calculating the net realizable value (NRV) of inventory, management determines the selling prices based on current observable market sales prices, selling costs, and includes an estimate of spoiled or expired inventory based on the most reliable evidence available at the time, to record inventory at the lower of cost or net realizable value. By-products, such as trim, are measured at their net-realizable-value (“NRV”) at point of harvest which is management has determined to be $nil. Impairment of non-financial assets Non-financial asset impairment tests require the estimation of the recoverable amount of the asset or CGU, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions conducted at arm's length for similar assets, valuation appraisals, or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the Company’s approved budget for the first year and the Company’s forecast for the next four years and do not include restructuring activities that the Company is not yet committed to, or significant future investments that will enhance the performance of the asset or CGU being tested. The recoverable amount is sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash flows and the growth rate used for extrapolation purposes. These estimates are most relevant to goodwill, property, plant and equipment and intangible assets. Cash flow projections for the HEXO Corporate CGU included significant judgments and assumptions relating to future forecasted cash flows, terminal value growth rate and post-tax discount rate Provisions Provisions are recognized when the Company has a present obligation, legal or constructive as a result of a previous event, if it is probable that the Company will be required to settle the obligation and a reliable estimate can be made of the obligation. The amount recognized is the best estimate of the expenditure required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligations. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate of the expected future cash flows. Business Combination Management performs a valuation analysis to allocate the purchase price based on the acquisition date fair values of the identifiable assets acquired and liabilities assumed. Determining the fair value of identifiable assets acquired and liabilities assumed on the acquisition date, require the use of judgement and estimates. The significant estimates related to estimating the fair value of the acquired cultivation and processing license, involved significant assumptions such as forecasted gross margin, and the delay in cultivation and production ramp-up. Management also exercises judgement in estimating the probability and timing of future cash flows and uses a discounted cash flow methodology as the basis for estimating fair value. The significant estimate related to estimating the fair value of know-how intangible asset is the incremental margin. Valuations are highly dependent on the inputs used and assumptions made by management regarding the future performance of these assets and any changes in the discount rate applied. Determining the fair value of the assumed debenture required the use of significant judgement given the default claims of the Debenture at acquisition and the legal proceedings underway with the lender (see Note 32). As the lender claimed the debenture was in default, management also exercised judgement in estimating the amount required to repay and terminate the Debenture and contingencies attached to the claim. Convertible Debentures Convertible debentures are financial instruments which are accounted for separately dependent on the nature of their components: a financial liability and an equity instrument. The identification of such components embedded within a convertible debenture requires significant estimates including discount rates and future cash flows. The conversion option has a fixed conversion rate thus the financial liability, which represents the obligation to pay coupon interest on the convertible debentures in the future, is initially measured at its fair value and subsequently measured at amortized cost. The residual balance, or conversion feature is accounted for as equity at issuance. Transaction costs are apportioned to the debt liability and equity component in proportion to the allocation of proceeds. Going Concern and Liquidity In assessing the Company’s ability to continue as a going concern, management utilizes significant estimates in the forecasting of future cash flows. Critical input estimates such as economic conditions, market demands, production quality, integrated operating activities, capital project expenditures and convertible debt repayments are used. New and Amended Standards Amendments to IAS 1: Classification of Liabilities as Current or Non-current The amendment clarifies the requirements relating to determining if a liability should be presented as current or non-current in the statement of financial position. Under the new requirement, the assessment of whether a liability is presented as current or non-current is based on the contractual arrangements in place as at the reporting date and does not impact the amount or timing of recognition. The amendment applies retrospectively for annual reporting periods beginning on or after January 1, 2022. The Company adopted the Amendments to IAS 1 effective August 1, 2021 with no impact to the Company's consolidated financial statements. Amendments to IAS 37: Onerous Contracts and the Cost of Fulfilling a Contract The amendment specifies that the 'cost of fulfilling' a contract comprises the 'costs that relate directly to the contract'. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract or an allocation of other costs that relate directly to fulfilling contracts. The amendment is effective for annual periods beginning on or after January 1, 2022 with early application permitted. The Company adopted the Amendments to IAS 37 effective August 1, 2021 with no impact to the Company's consolidated financial statements. Amendments to IAS 16: Property Plant and Equipment: Proceeds before intended use The amendment clarifies the accounting for the net proceeds from selling any items produced while bringing an item of property plant and equipment into use. The amendment prohibits a company from deducting from the cost of property plant and equipment proceeds from selling items produced while the company is preparing that assets for its intended use. The company will recognize such sales proceeds and related costs in profit and loss. The amendment is effective for annual periods beginning on or after January 1, 2022 with early application permitted. The Company adopted the Amendments to IAS 16 effective August 1, 2021 with no impact to the Company's consolidated financial statements. New Accounting Policies Not Yet Effective The following IFRS standards have been recently issued by the IASB. Pronouncements that are irrelevant or not expected to have a significant impact have been excluded. Amendments to IAS 12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction The amendment narrowed the scope of certain recognition exemptions so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. An entity applies the amendments to transactions that occur on or after the beginning of the earliest comparative period presented. It also, at the beginning of the earliest comparative period presented, recognizes deferred tax for all temporary differences related to leases and decommissioning obligations and recognizes the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at that date. The amendment is effective for annual periods beginning on or after January 1, 2023 with early application permitted. The Company is currently evaluating the potential impact of these amendments on the Company's consolidated financial statements. |
Basis of Preparation (Tables)
Basis of Preparation (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Basis Of Presentation [Abstract] | |
Schedule of major subsidiaries | Principal Operating Subsidiaries Jurisdiction Interest Held Principal Activity HEXO Operations Inc. Quebec, 100% To produce and sell cannabis and cannabis products under the Cannabis Act. HEXO USA Inc. Delaware, 100% To facilitate expansion into the US market. 5048963 Ontario Inc. Ontario, 100% To produce and sell cannabis and cannabis products under the Cannabis Act. |
Schedule of major associates | Significant associates Jurisdiction Interest Held Principal Activity Truss Limited Partnership ("Truss LP") Ontario, Canada 42.5% To pursue opportunities to develop non- alcoholic, cannabis infused beverages for the Canadian market. Truss CBD USA LLP Colorado USA 42.5% To explore opportunities for non-alcoholic hemp derived CBD beverages in the State of Colorado. |
Significant Accounting Polici_3
Significant Accounting Policies and Pronouncements (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Significant Accounting Policies [Abstract] | |
Schedule of terms and method used to calculate amortization of tangible assets | Asset Method Term Land Not depreciated No term Buildings Straight line 5 to 20 years Leasehold improvements Straight line lease term Furniture and equipment Straight line 5 years Cultivation and production equipment Straight line 5 to 20 years Vehicles Straight line 5 years Computers Straight line 3 years |
Schedule of terms and method used to calculate amortization of intangible assets | Asset Method Term Domain names Straight line 10 years Health Canada licenses Straight line 20 years Software Straight line 3-5 years Patents/Production Know-How Straight line 6-20 years Brands Straight line 3 years |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Categories of current financial assets [abstract] | |
Schedule of cash and cash equivalents | Interest rate July 31, 2022 July 31, 2021 $ $ Operating cash - 75,819 31,702 High interest savings accounts 1.80% 7,419 35,760 Cash and cash equivalents 83,238 67,462 |
Restricted Funds (Tables)
Restricted Funds (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Restricted Cash [Abstract] | |
Schedule of restricted funds | July 31, 2022 July 31, 2021 $ $ Letters of credit, collateral and guarantees for purchases 2,230 2,552 Restricted cash under terms of the Senior Secured Convertible Note (Note 19) - 99,696 Cash restricted in captive insurance subsidiary 29,994 29,998 Total 32,224 132,246 |
Commodity Taxes Recoverable a_2
Commodity Taxes Recoverable and Other Receivables (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Commodity Taxes Recoverable And Other Receivables [Abstract] | |
Schedule of commodity taxes recoverable and other receivables | July 31, 2022 July 31, 2021 $ $ Commodity taxes recoverable 7,411 56 Lease receivable - current 1 - 107 Cash receivable on settlement of marketable securities - 2,698 Loan receivable 2 - 5,000 Other receivables - 5,688 Total 7,411 13,549 1 2 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Classes of current inventories [abstract] | |
Schedule of inventories | As at July 31, 2022 Capitalized Biological asset fair cost value adjustment Total Dried cannabis $ 30,636 $ 23,600 $ 54,236 Purchased dried cannabis 662 – 662 Extracts 3,928 – 3,928 Purchased extracts 478 – 478 Packaging and supplies 7,105 – 7,105 $ 42,809 $ 23,600 $ 66,409 As at July 31, 2021 Capitalized Biological asset fair cost value adjustment Total Dried cannabis $ 81,784 $ 24,257 $ 106,041 Purchased dried cannabis 1,754 – 1,754 Extracts 11,945 4,411 16,356 Purchased extracts 2,247 – 2,247 Packaging and supplies 8,929 – 8,929 $ 106,659 $ 28,668 $ 135,327 |
Biological Assets (Tables)
Biological Assets (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of detailed information about biological assets [abstract] | |
Schedule of changes in the carrying value of biological assets | For the years ended July 31, 2022 July 31, 2021 $ $ Balance, beginning of year 14,284 7,571 Acquired on business combination 8,352 8,892 Production costs capitalized 62,489 36,156 Net increase in fair value due to biological transformation and estimates 59,665 51,499 Harvested cannabis transferred to inventory (119,432 ) (89,834 ) Disposal of biological assets (3,086 ) - Derecognized on loss of control of subsidiary (Note 15) (6,366 ) - Balance, end of year 15,906 14,284 |
Schedule of significant unobservable inputs, their range of values and sensitivity analysis | Significant inputs and assumptions Input values An increase or decrease of 5% applied to the July 31, 2022 July 31, 2021 July 31, 2022 July 31, 2021 Weighted average selling price $2.73 per dried gram $3.05 per dried gram $1,190 $746 Yield per plant 82-1,307 grams per plant 1 24-116 grams per plant $803 $460 Post-harvest cost $0.19-$0.63 per dried gram $0.67-$0.84 per dried gram $303 $636 1 |
Investments in Associates & J_2
Investments in Associates & Joint Ventures (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Associate And Joint Ventures [Abstract] | |
Schedule of ownership interest in other entities | July 31, 2022 July 31, 2021 Truss LP Other Total Truss LP Other Total $ $ $ $ $ $ Opening Balance 72,873 1,806 74,679 74,966 1,340 76,306 Cash contributed to investment 8,500 2,721 11,221 4,250 783 5,033 Disposal - (984 ) (984 ) - - - Share of net (loss) (7,613 ) (1,544 ) (9,157 ) (6,343 ) (162 ) (6,505 ) Impairment (57,760 ) - (57,760 ) - - - Foreign exchange loss through OCI - - - - (155 ) (155 ) Ending Balance 16,000 1,999 17,999 72,873 1,806 74,679 |
Schedule of investment in associate | Truss LP As at July 31, 2022 July 31, 2021 Statement of Financial Position $ $ Cash and cash equivalents 12,640 6,757 Other current assets 11,562 7,867 Non- current assets 63,305 67,766 Current liabilities 8,145 11,112 Non-current liabilities 8,420 8,667 |
Schedule of investment in joint venture | For the year ended July 31, 2022 July 31, 2021 Statement of Comprehensive Loss Revenue 13,516 6,498 Operating expenses excluding depreciation and amortization (16,265 ) (14,261 ) Depreciation and amortization (6,486 ) (4,884 ) Other expenses - - Loss from operations (17,289 ) (14,643 ) Other income (64 ) 130 Interest expenses (560 ) (412 ) Income tax expenses - - Total comprehensive loss (17,913 ) (14,925 ) |
Schedule for reconciliation of investment in associate | For the year ended July 31, 2022 July 31, 2021 $ $ Opening net assets 70,039 74,964 Acquisition of associate/capital calls 20,000 10,000 Total comprehensive loss (17,913 ) (14,925 ) Closing net assets 72,126 70,039 Interest in associate 42.5% 42.5% Interest in associate value 30,654 29,767 Fair value of warrant consideration 42,386 42,386 Capitalized transaction costs 720 720 Impairment loss (57,760 ) - Total interest in associate value 16,000 72,873 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Property, plant and equipment [abstract] | |
Schedule of property, plant and equipment | Cost Land Buildings Leasehold Cultivation Furniture, Construction Right-of- Total $ $ $ $ $ $ $ $ At July 31, 2020 1,656 164,949 24,439 33,461 18,871 98,135 24,405 365,916 Business acquisition 1,100 95,788 - 6,154 8,578 395 17,059 129,074 Additions - 1,213 63 2,284 294 16,960 - 20,814 Disposals - 1 - (67 ) - - (1,055 ) (1,121 ) Transfers - 3,951 17,649 884 1,388 (23,544 ) - 328 At July 31, 2021 2,756 265,902 42,151 42,716 29,131 91,946 40,409 515,011 Business acquisitions 8,941 59,856 545 58,063 2,053 4,076 1,993 135,527 Additions 61 602 (36 ) 15,511 141 11,333 - 27,612 Disposals - (971 ) (587 ) (3,946 ) (3,577 ) (223 ) (20,460 ) (29,764 ) Transfers (307 ) (523 ) 546 (2,106 ) (3,070 ) (1,033 ) (350 ) (6,843 ) Held for sale (1,766 ) (11,967 ) - (7,944 ) (3,151 ) (393 ) - (25,221 ) Loss of control 1 (592 ) (84,865 ) - (8,428 ) (3,013 ) 411 (17,059 ) (113,546 ) At July 31, 2022 9,093 228,034 42,619 93,866 18,514 106,117 4,533 502,776 Accumulated depreciation and impairments At July 31, 2020 307 13,712 1,009 8,691 4,141 48,990 3,700 80,550 Depreciation - 7,981 2,173 5,145 4,229 - 2,246 21,774 Transfers - (110 ) (16 ) (78 ) (277 ) - - (481 ) Disposals - - - - - - (964 ) (964 ) Impairments - 160 85 2,104 61 - 17,820 20,230 At July 31, 2021 307 21,743 3,251 15,862 8,154 48,990 22,802 121,109 Depreciation - 11,143 2,028 11,931 4,245 - 1,796 31,143 Transfers (307 ) (329 ) (5 ) (4,328 ) 138 (5,405 ) (350 ) (10,586 ) Disposals - - (498 ) (260 ) (612 ) - (20,300 ) (21,670 ) Impairments 462 89,581 37,084 11,470 5,698 48,746 15,524 208,565 Held for sale - (1,868 ) - (2,188 ) (884 ) - - (4,940 ) Loss of control 1 (462 ) (79,602 ) - (13,933 ) 153 4,192 (17,059 ) (106,711 ) At July 31, 2022 - 40,668 41,860 18,554 16,892 96,523 2,413 216,910 Net book value At July 31, 2020 1,349 151,237 23,430 24,770 14,730 49,145 20,705 285,366 At July 31, 2021 2,449 244,159 38,900 26,854 20,977 42,956 17,607 393,902 At July 31, 2022 9,093 187,366 759 75,312 1,622 9,594 2,120 285,866 1 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners [abstract] | |
Schedule of assets held for sale | Net book value Land Buildings Cultivation Furniture, Construction Total $ $ $ $ $ $ At July 31, 2021 - - - - - - Business acquisition (Note 15) 1,873 366 274 - - 2,513 Additions 1,765 10,100 5,756 2,267 393 20,281 Disposals (974 ) (3,246 ) - (14 ) - (4,234 ) Impairment loss (794 ) - (5,185 ) (379 ) (80 ) (6,438 ) Loss of control of subsidiary (Note 15) (508 ) (5,938 ) - (241 ) (313 ) (7,001 ) At July 31, 2022 1,362 1,281 845 1,633 - 5,121 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Changes in intangible assets other than goodwill [abstract] | |
Schedule of intangible assets | Cost Cultivating and Brands Software Domain Patents/ Total $ $ $ $ $ $ At July 31, 2020 116,433 8,440 3,710 585 1,933 131,101 Additions - - 1,546 - 790 2,336 Business acquisition 28,914 5,400 - - - 34,314 Disposals - - (872 ) - - (872 ) At July 31, 2021 145,347 13,840 4,384 585 2,723 166,879 Additions - - 6,494 - 590 7,084 Business acquisitions 73,079 97,200 1,221 - 27,337 198,837 Loss of control (28,914 ) (5,400 ) - - - (34,314 ) At July 31, 2022 189,512 105,640 12,099 585 30,650 338,486 Accumulated amortization and impairments At July 31, 2020 110,957 2,000 1,966 125 45 115,093 Amortization 765 170 922 59 134 2,050 Disposals - - (872 ) - - (872 ) At July 31, 2021 111,722 2,170 2,016 184 179 116,271 Amortization 6,561 7,862 3,527 59 3,338 21,347 Impairment 72,950 56,450 - - 11,439 140,839 Loss of control (28,914 ) (5,400 ) - - - (34,314 ) At July 31, 2022 162,319 61,082 5,543 243 14,956 244,143 Net book value At July 31, 2020 5,476 6,440 1,744 460 1,888 16,008 At July 31, 2021 33,625 11,670 2,368 401 2,544 50,608 At July 31, 2022 27,193 44,558 6,556 342 15,694 94,343 |
Business Acquisitions and Los_2
Business Acquisitions and Loss of Control (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
48 North Cannabis Corp. | |
Disclosure of detailed information about business combination [line items] | |
Schedule of fair value of net assets assumed as at the acquisition date | Units Unit Price Fair Value ($) ($) Consideration Shares issued (i) 5,352,005 3.10 16,591 Replacement warrants outstanding (ii) 1,554,320 769 Replacement stock options issued (iii) 17,766 18 Settlement of pre-existing debt (iv) n/a 5,000 Total fair value of consideration 22,378 Net assets acquired Current assets Cash and cash equivalents 989 Accounts receivable 1,263 Other receivables 259 Prepaid expenses 2,962 Inventory 5,040 Biological assets 875 Assets held for sale 2,513 Non-current assets Property, Plant and Equipment 9,683 Intangible assets - brands 2,500 Goodwill Note 16 11,453 Total assets 37,537 Current liabilities Accounts payable and accrued liabilities (10,580 ) Excise taxes payable (555 ) Lease Liability (178 ) Non-current liabilities Lease Liability (553 ) Term loan (3,293 ) Total liabilities (15,159 ) Total net assets acquired 22,378 |
Redecan | |
Disclosure of detailed information about business combination [line items] | |
Schedule of fair value of net assets assumed as at the acquisition date | Units Unit Price Fair Value ($) ($) Consideration Cash (i) 402,173 Shares issued (ii) 69,721,116 3.07 214,044 Total fair value of consideration 616,217 Net assets acquired Current assets Cash and cash equivalents 20,027 Accounts receivable 9,795 Prepaid expenses 4,366 Excise taxes receivable 2,566 Inventory 37,229 Biological assets 7,476 Income tax recoverable 4,947 Non-current assets Property, plant and equipment 125,844 Cultivation and processing license 73,079 Brands 94,700 Know-how intangible asset 27,337 Intangible assets - software 1,221 Goodwill Note 16 275,397 Total assets 683,984 Current liabilities Accounts payable and accrued liabilities (4,340 ) Excise taxes payable (1,125 ) Lease liability - current (144 ) Income Tax Payable (188 ) Non-current liabilities Lease Liability (1,117 ) Deferred tax (60,853 ) Total liabilities (67,767 ) Total net assets acquired 616,217 |
Zenabis Global Inc | |
Disclosure of detailed information about business combination [line items] | |
Schedule of fair value of net assets assumed as at the acquisition date | Units Unit Price Fair Value ($) ($) Consideration Shares issued (i) 17,579,336 8.61 151,358 Replacement warrants outstanding (ii) 5,970,370 32,354 Replacement stock options issued (iii) 905,902 5,727 Replacement RSU's and DSU's issued 223,497 1,554 Settlement of pre-existing debt (iv) n/a 20,760 Total fair value of consideration 211,753 Net assets acquired Current assets Cash and cash equivalents 2,804 Accounts receivable 3,822 Other receivables 198 Excise taxes receivable 86 Inventory 40,636 Biological assets 8,892 Non-current assets Property, plant and equipment 129,074 Prepaid expenses 5,670 Cultivation and processing license 28,914 Brands 5,400 Goodwill Note 16 88,189 Total assets 313,685 Current liabilities Accounts payable and accrued liabilities (22,161 ) Loans Note 22 (52,194 ) Convertible debentures (11,724 ) Non-current liabilities Lease Liability (17,059 ) Deferred tax liabilities (134 ) Total liabilities (103,272 ) Non-controlling interest 1,340 Total net assets acquired 211,753 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Goodwill [Abstract] | |
Schedule of reconciliation of changes in goodwill | $ Balance as at July 31, 2020 - Acquisition - Zenabis (Note 15) 88,189 Balance as at July 31, 2021 88,189 Acquisition - Redecan (Note 15) 275,397 Acquisition - 48North (Note 15) 11,453 Impairment (375,039 ) Balance as at July 31, 2022 - |
Warrant Liabilities (Tables)
Warrant Liabilities (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Warrant Liabilities [Line Items] | |
Schedule of warrant liabilities | US$25,000 US$20,000 August 2021 Underwritten Total $ $ $ $ Opening balance as at August 1, 2020 1,917 1,533 - 3,450 Loss on revaluation of financial instruments 1,269 1,014 - 2,283 Balance as at July 31, 2021 3,186 2,547 - 5,733 Issued - - 39,255 39,255 Gain on revaluation of financial instruments (3,178 ) (2,541 ) (38,552 ) (44,271 ) Balance as at July 31, 2022 8 6 703 717 |
Schedule of warrant liability fair value assumptions | As at Initial recognition Number of warrants 24,540,012 24,540,012 Share price US$0.19 US$2.58 Expected life 3 years 2.5 years Dividend US $nil US $nil Volatility 101% 96% Risk free rate 2.98% 0.84% Exchange rate (USD/CAD) $1.2824 $1.2608 |
USD$20,000 Registered Direct Offering | |
Warrant Liabilities [Line Items] | |
Schedule of warrant liability fair value assumptions | As at As at Initial recognition Number of warrants 1,497,007 1,497,007 1,497,007 Share price US$0.19 US$3.97 US$5.80 Expected life 2.41 years 2.5 years 2.5 years Dividend US $nil US $nil US $nil Volatility 101% 95% 80% Risk free rate 2.98% 0.38% 1.57% Exchange rate (USD/CAD) $1.2824 1.2462 1.3116 |
US$25,000 Registered Direct Offering | |
Warrant Liabilities [Line Items] | |
Schedule of warrant liability fair value assumptions | As at As at Initial recognition Number of warrants 1,871,259 1,871,259 1,871,259 Share price US$0.19 US$3.97 US$6.36 Expected life 2.41 years 2.5 years 2.5 years Dividend US $nil US $nil US $nil Volatility 101% 95% 79% Risk free rate 2.98% 0.38% 1.71% Exchange rate (USD/CAD) $1.2824 1.2462 1.2988 |
Convertible Debentures (Tables)
Convertible Debentures (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of convertible debentures | Note July 31, 2022 July 31, 2021 $ $ Unsecured convertible debenture- March 2019 (a) - 3,406 Unsecured convertible debenture- December 2019 (b) 38,301 33,089 Total convertible debentures 38,301 36,495 Current 38,301 3,406 Non-Current - 33,089 |
Unsecured convertible debenture- March 2019 | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of convertible debentures | Balance as at July 31, 2020 $ - Acquired on business combination 3,722 Interest payments (372 ) Interest expense 56 Balance as at July 31, 2021 $ 3,406 Interest expense 55 Debt repayment (3,461 ) Balance as at July 31, 2022 $ - |
Unsecured convertible debenture- December 2019 | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of convertible debentures | Balance as at July 31, 2020 $ 28,969 Interest expense 7,331 Interest paid (3,211 ) Balance as at July 31, 2021 $ 33,089 Interest expense 8,423 Interest paid (3,211 ) Balance as at July 31, 2022 $ 38,301 |
Senior Secured Convertible No_2
Senior Secured Convertible Note (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Senior Secured Convertible Note [Abstract] | |
Schedule of senior secured convertible note | Pre- July 12, 2022 Pre- July 12, July 31, July 31, Senior Secured Convertible Note US$ $ US$ $ Opening balance, beginning of the year 364,847 454,673 - - Issued at fair value - - 407,284 491,714 Early conversions - - (413 ) (497 ) Redemptions (177,017 ) (223,148 ) (27,500 ) (33,525 ) Gain on fair value adjustment 11,925 15,784 (14,524 ) (18,100 ) Foreign exchange loss - 12,672 - 15,081 Balance upon amendment July 31, 2022 (Note 20) / Balance end of period (July 31, 2021) 199,755 259,981 364,847 454,673 Unrecognized Day 1 Loss Opening balance, beginning of the year (72,214 ) (86,974 ) - - Unrecognized loss deferred at issuance - - (79,684 ) (96,203 ) Recognized loss during the period 72,214 86,974 7,470 9,229 Ending balance, end of the period - - (72,214 ) (86,974 ) Total balance, end of period, net 199,755 259,981 292,633 367,699 |
Schedule of fair value of the note classified as level 2 in fair value hierarchy | As at As at Initial recognition Share price US$0.20 US$3.98 US$6.53 Dividend $nil $nil $nil Volatility 81% 85% 85% Risk free rate 3.57% 0.327% 0.227% Credit spread 38.57% 15.44% 16.06% |
Schedule of detailed information about extinguishment of debt | $ Carrying value of Senior secured convertible note pre-amendment 259,981 Fair value of common shares and share rights issued on amendment (17,900 ) Transaction costs (12,987 ) Fair value of Amended senior secured convertible note (208,560 ) Net gain on extinguishment of debt 20,534 |
Amended Senior Secured Conver_2
Amended Senior Secured Convertible Note (Tables) - Amended Senior Secured Convertible Note | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of convertible note payable | July 31, July 31, US$ $ Balance upon amendment (Note 19) 160,246 208,560 Gain on fair value during the year 3,805 4,880 Foreign exchange loss - (3,061 ) Ending balance, end of the year 164,051 210,379 |
Schedule of convertible note payable, fair value inputs | As at Initial recognition Share price US$0.19 US$0.20 Dividend $nil $nil Volatility 87.8% 80.7% Credit spread 34.2% 38.6% Conversion price US$0.31 US$0.30- US$0.31 |
Lease Liabilities (Tables)
Lease Liabilities (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of quantitative information about leases for lessee [abstract] | |
Schedule of lease liabilities | $ Balance at July 31, 2020 29,116 Assumed on business combination (Note 15) 17,059 Lease disposals (789 ) Lease payments (4,835 ) Interest expense on lease liabilities 3,334 Balance at July 31, 2021 43,885 Assumed on business combination (Note 15) 1,992 Lease additions 29 Lease terminations (24,300 ) Lease payments (6,054 ) Interest expense on lease liabilities 4,197 Derecognition due to loss of control (Note 15) (16,909 ) Balance at July 31, 2022 2,840 Current 914 Non-current 1,926 |
Schedule of lease obligations over next five fiscal years and thereafter | Fiscal year 2023 2024 - 2025 2026 - 2027 Thereafter Total $ $ $ $ $ Lease obligations 1,026 1,174 300 1,200 3,700 |
Senior Notes Payable (Tables)
Senior Notes Payable (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of detailed information about borrowings [line items] | |
Schedule of senior notes payable | July 31, 2022 July 31, 2021 $ $ Opening Balance 50,159 - Assumed on business combination - 50,138 Interest paid (5,095 ) (1,210 ) Interest expense 6,604 1,231 Deconsolidated due to loss of control (Note 15) (51,668 ) - Closing Balance - 50,159 Current portion - 50,159 Long-term portion - - |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Share Capital [Abstract] | |
Schedule of stock option issued and outstanding | Number of shares Share Capital Balance at July 31, 2020 120,616,441 $ 1,023,788 May 2021 at the market offering, net (i) 6,373,926 45,257 June 2020 at the market offering (ii) 244,875 - Senior secured convertible note 1 Note 19 4,602,241 29,540 Acquisition shares - Zenabis Note 15 17,579,336 151,358 Transaction costs Note 15 448,639 3,612 Exercise of warrants Note 24 2,146,931 9,932 Exercise of stock options Note 25 410,051 3,213 Exercise of equity settled RSUs Note 25 223,506 1,267 Balance at July 31, 2021 152,645,946 $ 1,267,967 Acquisition shares - Redecan, net Note 15 69,721,116 213,746 Acquisition shares - 48North, net Note 15 5,352,005 16,486 At-the-Market program, net of costs (iv) 24,290,117 27,266 August 2021 Underwritten Public Offering (iii) 49,080,024 135,645 Redemptions of senior secured convertible note 1 Note 19 202,224,566 199,818 Amended senior secured convertible note Note 20 67,774,266 17,900 Equity line of credit standby commitment fee (v) 10,843,373 3,795 Advisor and broker compensation (vi) 19,040,010 6,998 Exercise of stock options Note 25 17,024 147 Balance as at July 31, 2022 600,988,447 $ 1,889,768 1 |
Common Share Purchase Warrants
Common Share Purchase Warrants (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Common Share Purchase Warrants [Abstract] | |
Schedule of warrant activity | July 31, 2022 July 31, 2021 Number of Weighted average Number of Weighted average warrants exercise price 1 warrants exercise price 1 Outstanding, beginning of year 36,666,958 $ 8.85 33,379,408 $ 7.60 Expired and cancelled 2 (3,179,074 ) 33.86 (535,889 ) 4.09 Issued on acquisition 1,554,320 22.43 5,970,370 14.59 Issued 24,540,012 4.35 - - Exercised - - (2,146,931 ) 4.10 Outstanding, end of year 59,582,216 $ 6.07 36,666,958 $ 8.85 1 2 3 |
Schedule of warrant issued | Issuance date Exercise price Warrants issued Expiry period June 01, 2021 (issued on acquisition) $ 3.96-$155.19 5,970,370 0.17-4 years August 24, 2021 US$3.45 24,540,012 5 years September 1, 2021 (issued on acquisition) $ 6.42-$72.70 1,554,320 1.63-2.59 years |
Schedule of warrants outstanding | The following is a consolidated summary of warrants outstanding as at July 31, 2022 and July 31, 2021. July 31, 2022 July 31, 2021 Number Book value Number Book value Classified as Equity $ $ June 2019 financing warrants Exercise price of $63.16 expiring June 19, 2023 546,135 10,023 546,135 10,022 April 2020 underwritten public offering warrants Exercise price of $3.84 expiring April 13, 2025 11,830,075 15,971 11,830,075 15,971 May 2020 underwritten public offering warrants Exercise price of $4.20 expiring May 21, 2025 7,591,876 10,446 7,591,876 10,446 Conversion Unit warrants Exercise price of $4.00 expiring June 10, 2023 3,686,721 11,427 3,686,721 11,427 Exercise price of $4.00 expiring June 30, 2023 978,907 1,928 978,907 1,928 Broker / Consultant warrants Exercise price of $3.00 expiring November 3, 2021 - - 18,905 34 Exercise price of $3.00 expiring March 14, 2022 - - 23,571 66 Exercise price of $63.16 expiring June 19, 2023 15 - 15 - Molson warrants Exercise price of $24.00 expiring October 4, 2021 - - 2,875,000 42,386 Issued in connection with business acquisition Exercise price of $151.24 expiring September 27, 2021 - - 14,617 - Exercise price of $155.19 expiring April 17, 2022 - - 226,422 1 Exercise price of $78.16 expiring August 21, 2022 15,992 3 15,992 3 Exercise price of $102.71 expiring August 21, 2022 24,338 2 24,338 2 Exercise price of $11.29 expiring January 27, 2023 356,689 1,195 356,689 1,195 Exercise price of $10.99 expiring April 16, 2023 680,877 398 - - Exercise price of $12.68 expiring May 4, 2023 602,804 322 - - Exercise price of $72.70 expiring April 2 2024 250,080 49 - - Exercise price of $3.96 expiring April 23, 2025 631,322 4,232 631,322 4,232 Exercise price of $9.03 expiring June 25, 2025 3,205,378 18,236 3,205,378 18,236 Exercise price of $5.64 expiring September 23, 2025 1,228,873 7,902 1,228,873 7,902 Exercise price of $8.47 expiring October 30, 2025 43,856 261 43,856 261 31,673,938 82,395 33,298,692 124,112 Classified as Liability US$25m Registered Direct Offering Warrants Exercise price of US$9.80 expiring December 31, 2024 1,871,259 8 1,871,259 3,185 US$20m Registered Direct Offering Warrants Exercise price of US$9.80 expiring January 22, 2025 1,497,007 6 1,497,007 2,548 August 2021 Underwritten Public Offerings Warrants Exercise price of US$3.45 expiring August 24, 2026 24,540,012 703 - - 27,908,278 717 3,368,266 5,733 59,582,216 83,112 36,666,958 129,845 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Detailed Information About Share Based Compensation [Abstract] | |
Schedule of stock option activity | July 31, 2022 July 31, 2021 Number of Weighted average Number of Weighted average options exercise price options exercise price Opening balance 12,018,143 $ 10.63 7,503,691 $ 16.30 Granted 17,851,906 0.73 5,273,906 5.21 Replacement options issued on acquisition 162,009 7.19 905,902 3.81 Forfeited (4,714,233 ) 4.47 (630,473 ) 12.80 Expired (613,733 ) 22.20 (624,832 ) 25.95 Exercised (17,024 ) 2.54 (410,051 ) 3.00 Closing balance 24,687,068 $ 0.73 12,018,143 $ 10.63 |
Schedule of stock option granted | Options granted Grant date Exercise price Executives and Non-executive Total Vesting terms Expiry period October 30, 2020 3.88 349,652 315,358 665,010 Terms A 10 years December 22, 2020 5.44 380,673 960,100 1,340,773 Terms A 10 years April 28, 2021 7.54 - 85,389 85,389 Terms A 10 years June 17, 2021 7.43 75,000 45,613 120,613 Terms A 10 years July 29, 2021 5.24 580,164 2,481,957 3,062,121 Terms A 10 years Total 1,385,489 3,888,417 5,273,906 November 1, 2021 1.86 2,327,613 947,580 3,275,193 Terms A 10 years March 21, 2022 0.75 2,491,034 2,254,069 4,745,103 Terms A 10 years April 28, 2022 0.51 2,839,660 178,157 3,017,817 Terms A 10 years June 16, 2022 0.28 6,192,033 621,760 6,813,793 Terms A 10 years Total 13,850,340 4,001,566 17,851,906 |
Schedule of stock options outstanding | Exercise price Number outstanding Weighted average Number exercisable Weighted average $0.28-$0.75 13,984,612 9.78 1,925,669 9.65 $1.86-$9.92 7,422,273 7.90 5,497,265 7.55 $10.76-$34.00 3,280,183 6.46 3,237,557 6.46 24,687,068 10,660,491 |
Schedule of restricted share units activity | July 31, 2022 July 31, 2021 Value of units on Value of units on Units grant date Units grant date Opening balance 550,832 $ 7.91 587,108 $ 8.41 Granted 1,517,236 1.74 24,008 3.17-7.17 Replacement units issued on acquisition - - 223,506 8.61 Exercised - equity settled - - (223,506 ) 8.61 Exercised - cash settled - - (25,483 ) 5.62-8.60 Forfeited (34,801 ) 3.30 (34,801 ) 11.76 Closing balance 2,033,267 $ 3.24 550,832 $ 7.91 |
Schedule of restricted share units granted | RSUs granted Grant date Unit value Executive and Non-executive Vesting terms Expiry period October 30, 2020 $ 3.16 7,161 - Terms A 10 years June 17, 2021 $ 7.17 9,413 - Terms A 10 years July 29, 2021 $ 5.38 7,434 - Terms A 10 years Total 24,008 November 1, 2021 $ 1.74 1,517,236 - Terms A 10 years Total 1,517,236 |
Schedule of deferred share units activity | July 31, 2022 July 31, 2021 Units Value of units Units Value of units Opening balance - $ - - $ - Granted 4,088,386 0.72 - - Closing balance 4,088,386 $ 0.24 - $ - |
Schedule of fair value of stock options and restricted share units granted | July 31, 2022 July 31, 2021 Exercise price (weighted average) $ 6.84 $ 17.03 Share price (weighted average) $ 6.69 $ 17.19 Risk-free interest rate (weighted average) 0.98% 1.24% Expected life (years) of options (weighted average) 5 5 Expected annualized volatility (weighted average) 93% 85% |
Schedule of equity-settled and cash-settled share-based payments | July 31, 2022 July 31, 2021 $ $ Stock option share-based compensation 13,506 12,863 RSU share-based compensation - 287 Total share-based compensation 13,506 13,150 RSU cash-settled compensation (189 ) 127 DSU cash-settled compensation 1,079 - Total cash-settled compensation 890 127 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Earnings per share [abstract] | |
Schedule of anti-dilutive securities excluded from computation of diluted earnings per share | The following securities could potentially dilute basic net loss per share in the future but have not been included in diluted loss per share because their effect was anti-dilutive: Instrument July 31, 2022 July 31, 2021 Stock options 24,687,068 12,018,143 RSUs 2,033,267 550,832 DSUs 4,088,386 - Acquired and reissued warrants 7,040,209 5,747,487 2019 June financing warrants 546,135 546,135 US$25m registered direct offering warrants 1,871,259 1,871,259 US$20m registered direct offering warrants 1,497,007 1,497,007 2020 April underwritten public offering warrants 11,830,075 11,830,075 2020 May underwritten public offering warrants 7,591,876 7,591,876 2021 August underwritten public offering warrants 24,540,012 - Warrants issued under conversion of debentures 4,665,628 4,665,628 Joint venture issued warrants - 2,875,000 Convertible debenture broker/finder warrants 15 42,491 Senior secured convertible note - 92,668,816 Amended senior secured convertible note 556,882,200 - 647,273,137 141,904,749 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of price risk | July 31, 2022 July 31, 2021 $ $ Financial assets 504 2,492 Financial liabilities (211,096 ) (373,432 ) Total exposure (210,592 ) (370,940 ) |
Schedule of aging of trade receivables | July 31, July 31, 2022 2021 $ $ 0-30 days 24,661 22,971 31-60 days 11,808 12,390 61-90 days 2,177 1,435 Over 90 days 4,353 625 Total 42,999 37,421 |
Schedule of analysis of contractual maturities for financial liabilities | Fiscal year 2023 2024 2025 2026 2027 Thereafter Total $ $ $ $ $ $ $ Accounts payable and accrued liabilities 72,581 - - - - - 72,581 Excise taxes payable 6,421 - - - - - 6,421 Convertible debentures (Note 18) 40,431 - - - - - 40,431 Undiscounted lease payments (Note 21) 1,026 587 587 150 150 1,200 3,700 120,459 587 587 150 150 1,200 123,133 Amended senior secured convertible note (Note 20) 34,176 34,176 34,176 250,270 - - 352,798 Total 154,635 34,763 34,763 250,420 150 1,200 475,931 |
Operating Expenses by Nature (T
Operating Expenses by Nature (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Expenses by nature [abstract] | |
Schedule of expenses by nature | For the year ended July 31, 2022 July 31, 2021 $ $ Salaries and benefits 22,628 21,116 General and administrative 32,914 20,730 Professional fees 22,837 11,962 Consulting 6,537 4,379 Total 84,916 58,187 |
Schedule of payroll related wages and benefits | For the year ended July 31, 2022 July 31, 2021 $ $ General and administrative related wages and benefits 22,628 21,116 Marketing and promotion related wages and benefits 6,959 5,543 Research and development related wages and benefits 2,034 2,706 Total operating expense related wages and benefits 31,621 29,365 Wages and benefits capitalized to inventory 31,041 14,993 Total wages and benefits 62,662 44,358 |
Other Income and Losses (Tables
Other Income and Losses (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Other Income And Losses [Abstract] | |
Schedule of other income and losses | For the year ended July 31, 2022 July 31, 2021 $ $ Interest and financing expenses (20,073 ) (32,124 ) Interest income 1,651 1,601 Net gain on extinguishment of debt (Note 19) 20,534 - Finance income (expense), net 2,112 (30,523 ) Revaluation of warrant liabilities 44,271 (2,283 ) Share of loss from investment in associates and joint ventures (9,157 ) (6,505 ) Fair value gain/(loss) on convertible debenture - 1,260 Fair value (loss)/gain on senior secured convertible note (45,820 ) 1,751 Amortization of day 1 loss (Note 19) (86,974 ) (9,229 ) Gain on sale of interest in BCI (Note 10) 9,127 - (Loss)/gain on investments (716 ) 1,994 N 25,009 - Foreign exchange gain/(loss) (666 ) 9,108 Other income 18,118 4,763 Non-operating income (expense), net (46,808 ) 859 |
Related Party Disclosure (Table
Related Party Disclosure (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of compensation provided to key management | For the year ended July 31, 2022 July 31, 2021 $ $ Salary and/or consulting fees 2,520 2,321 Termination benefits 1 10,914 1,008 Bonus compensation 1,400 800 Stock-based compensation 7,051 6,800 Total 21,285 10,929 1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Commitments And Contingencies [Abstract] | |
Schedule of future minimum payments under contractual financial obligations | $ July 31, 2023 44,147 July 31, 2024 24,536 July 31, 2025 26,448 July 31, 2026 23,326 July 31, 2027 11,771 Thereafter 1,200 131,428 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure Of Fair Value Of Financial Instruments Explanatory [Abstract] | |
Schedule of carrying values of financial instruments | The fair values of the financial instruments as at July 31, 2022 are summarized in the following table: Amortized cost FVTPL Total Assets $ $ $ Cash and cash equivalents 83,238 - 83,238 Restricted funds 32,224 - 32,224 Long - term investments - 504 504 Liabilities $ $ $ Warrant liability - 717 717 Convertible debt 38,301 - 38,301 Amended senior secured convertible note - 223,132 223,132 Other long-term liabilities 1 - 1,409 1,409 1 The fair values of the financial instruments as at July 31, 2021 are summarized in the following table: Amortized cost FVTPL Total Assets $ $ $ Cash and cash equivalents 67,462 - 67,462 Restricted funds 132,246 - 132,246 Long - term investments - 2,492 2,492 Liabilities $ $ $ Warrant liability - 5,733 5,733 Convertible debt - current 3,406 - 3,406 Convertible debt 33,089 - 33,089 Senior secured convertible note - current - 367,699 367,699 Senior notes payable - current 50,159 - 50,159 Other long-term liabilities 1 - 520 520 1 |
Non-Controlling Interest (Table
Non-Controlling Interest (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of subsidiaries [line items] | |
Schedule of change in non-controlling interests | July 31, 2022 July 31, 2021 $ $ Balance, Beginning of year 1,987 3,379 Non-controlling interest acquired on business combination - (1,340 ) Partnership contributions 2,308 81 Share of comprehensive loss for the period (6,017 ) (133 ) Loss of control 1,722 - Balance, End of year - 1,987 |
Keystone Isolation Technologies Inc. ("KIT") | |
Disclosure of subsidiaries [line items] | |
Schedule of information relating to subsidiary | July 31, 2022 July 31, 2021 $ $ Current assets - - Non-current assets - 8,651 Current liabilities - - Non-current liabilities - - Impairment ( 4,504 ) - Non-controlling interest (%) 40% 40% Non-controlling interest - 3,460 |
Revenue from Sale of Goods (Tab
Revenue from Sale of Goods (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Revenue [abstract] | |
Schedule of gross revenue | For the year ended July 31, 2022 July 31, 2021 Revenue stream Cannabis sales Cannabis Total Cannabis sales Cannabis Total $ $ $ $ $ $ Retail 211,744 16,369 228,113 143,098 15,821 158,919 Medical 3,395 - 3,395 1,769 - 1,769 Wholesale 13,538 - 13,538 2,458 - 2,458 International 20,372 - 20,372 9,935 - 9,935 Total revenue from sale of goods 249,049 16,369 265,418 157,260 15,821 173,081 |
Operating Cash Flow Supplement
Operating Cash Flow Supplement (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Operating Cash Flow [Abstract] | |
Schedule of operating cash flow activity | For the year ended July 31, 2022 July 31,2021 $ $ Items not affecting cash Depreciation of property, plant and equipment 7,428 6,097 Depreciation of property, plant and equipment in cost of sales 20,868 8,601 Amortization of intangible assets 21,347 2,050 Loss on convertible debentures 131,602 6,218 Unrealized gain on changes in fair value of biological assets (59,665 ) (51,499 ) Unrealized fair value adjustment on investments 747 (1,994 ) Amortization of deferred financing costs - 793 Interest and other income 14,347 5,837 Accretion of convertible debenture 5,167 4,075 Non-cash finance and transaction fees 5,190 21,690 License depreciation and prepaid royalty expenses - 118 Write-off of inventory and biological assets 14,297 2,182 Write down of inventory to net realizable value 99,739 2,927 Realized fair value amounts on inventory sold 43,455 31,767 Loss from investment in associate and joint ventures 9,157 6,505 Share-based compensation 14,607 14,859 Revaluation of financial instruments (gain)/loss (44,271 ) 2,283 Net gain on extinguishment of debt (28,321 ) - Impairment losses 790,981 20,230 Loss on long lived assets and disposal of property, plant and equipment (2,466 ) 1,358 Net gain on loss of control of subsidiary (25,009 ) - Gain on sale of BCI (9,127 ) - Gain on exit of lease (17,189 ) (789 ) Foreign exchange gain 7,418 (11,648 ) Total items not affecting cash 1,000,302 71,660 Changes in non-cash operating working capital items Trade receivables 825 (14,203 ) Commodity taxes recoverable and other receivables 3,963 5,197 Prepaid expenses 6,514 (106 ) Lease receivable 27 - Inventory (81,571 ) (52,539 ) Biological assets 57,688 53,678 Accounts payable and accrued liabilities 10,317 8,848 Excise taxes payable (1,951 ) (444 ) Income tax recoverable (379 ) - Total non-cash operating working capital (4,567 ) 431 |
Schedule of additional supplementary cash flow information | For the year ended July 31, 2022 July 31, 2021 $ $ Property, plant and equipment in accounts payable 1,292 1,152 Right-of-use asset additions 1,993 17,059 Capitalized borrowing costs - 1,269 Interest paid 8,306 5,618 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2022 | |
Income taxes paid (refund) [abstract] | |
Schedule of components of income tax expense | July 31, 2022 July 31, 2021 $ $ Current tax for the year 89 22 Adjustments of previous years ( 80 ) - Total 9 22 |
Schedule of deferred income tax expense (recovery) | July 31, 2022 July 31, 2021 $ $ Origination and reversal of temporary differences (215,230 ) (14,659 ) Difference between statutory tax rate and deferred tax rate 4,843 (249 ) Change in temporary difference for which no deferred tax assets are recorded 171,565 14,489 Deferred income tax (recovery) (38,822 ) (419 ) |
Schedule of income tax rate reconciliation | July 31, 2022 July 31, 2021 Expected tax rate 26.50% 26.50% $ $ Earnings before income taxes (1,112,421 ) (115,159 ) Expected tax benefit resulting from loss (294,791 ) (30,517 ) Adjustments for the following items: Tax rate differences 4,843 (652 ) Permanent differences 96,743 8,696 Change in temporary differences for which no tax assets are recorded 154,392 22,076 (38,813 ) (397 ) |
Schedule of reconciliation of deferred tax assets and liabilities | Opening Recognized Business Recognized Business Ending August 1, 2021 in income Combination in equity Deconsolidation July 31, 2022 $ $ $ $ $ $ Taxable temporary differences (5,017 ) 7,944 (7,001 ) (6,825 ) 3,254 (7,645 ) Biological assets (606 ) ( 472 ) ( 1,974 ) - - (3,052 ) Inventory (10,850 ) 3,342 (4,185 ) - 10,039 (1,654 ) Loss carryforward 28,693 ( 5,027 ) 4,248 - (22,974 ) 4,940 Financing costs - (337 ) 337 - - - Intangible assets (12,356 ) 33,372 (52,278 ) - 9,828 (21,434 ) Net deferred tax asset (liability) (136 ) 38,822 (60,853 ) (6,825 ) 147 (28,845 ) Opening Recognize Business Recognized in Ending August 1, 2020 in income Combination equity July 31, 2021 $ $ $ $ $ Taxable temporary differences 10,415 (14,701 ) (310 ) (421 ) (5,017 ) Biological assets (1,330 ) 724 - - (606 ) Inventory (5,088 ) 1,514 (7,276 ) - (10,850 ) Loss carryforward - 14,028 14,665 - 28,693 Financing costs - (2,738 ) 2,738 - - Intangible assets (3,997 ) 1,592 (9,951 ) - (12,356 ) Net deferred tax asset (liability) - 419 (134 ) (421 ) (136 ) |
Schedule of deductible temporary differences and unused tax losses | July 31, 2022 July 31, 2021 $ $ Deductible temporary differences 26,952 11,556 Taxable temporary differences - 26,444 Investments 288,958 17,030 Losses carried forward 594,890 278,115 Research and development expenditures 3,148 1,817 Fixed Assets, intangibles and other assets 243,665 114,384 Financing costs 38,313 40,401 1,195,926 489,747 |
Schedule of non-capital losses | $ 2023 - 2024 - 2025 - 2026 - 2027 - 2028 946 2029 75 2030 2,867 2031 3,018 2032 2,489 2033 820 2034 2,240 2035 10,687 2036 23,807 2037 30,477 2038 8,028 2039 71,455 2040 148,402 2041 63,097 2042 232,499 Indefinite 5,637 606,544 |
Going Concern (Narrative) (Deta
Going Concern (Narrative) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |||||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 15, 2022 | Jul. 12, 2022 | Jun. 17, 2022 | Jul. 31, 2020 | |
Disclosure Of Going Concern [Line Items] | ||||||
Loss from operations | $ (1,067,725) | $ (85,495) | ||||
Cash used in operating activities | (116,686) | (43,068) | ||||
Accumulated deficit | (1,841,584) | (773,993) | ||||
Working capital (deficiency) | (63,429) | |||||
Cash and cash equivalents | 83,238 | 67,462 | $ 184,173 | |||
Restricted cash and cash equivalents | $ 32,224 | $ 132,246 | ||||
Minimum liquidity covenant | Furthermore, the Company remains subject to, amongst others, a minimum liquidity covenant of US$20 million under the | |||||
Convertible debentures | ||||||
Disclosure Of Going Concern [Line Items] | ||||||
Interest rate of convertible debenture maturing | 8% | |||||
Notes and debentures issued | $ 40,140 | |||||
Equity line of credit - Standby commitment fee | ||||||
Disclosure Of Going Concern [Line Items] | ||||||
Non-binding Letter of Intent | $ 180,000 | |||||
Additional capital available per month | $ 5,000 | |||||
Zenabis Global Inc | ||||||
Disclosure Of Going Concern [Line Items] | ||||||
Notional amount | $ 50,732 | |||||
Directors and officer | ||||||
Disclosure Of Going Concern [Line Items] | ||||||
Restricted cash and cash equivalents | $ 29,994 |
Basis of Preparation - Schedule
Basis of Preparation - Schedule of major subsidiaries (Details) | 12 Months Ended |
Jul. 31, 2022 | |
HEXO Operations Inc. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100% |
HEXO USA Inc. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100% |
5048963 Ontario Inc. | |
Disclosure of subsidiaries [line items] | |
Proportion of ownership interest in subsidiary | 100% |
Basis of Preparation - Schedu_2
Basis of Preparation - Schedule of major associates (Details) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Truss Limited Partnership ("Truss LP") | ||
Disclosure of associates [line items] | ||
Proportion of ownership interest in associate | 42.50% | 42.50% |
Truss CBD USA LLC ("Truss CBD US") | ||
Disclosure of associates [line items] | ||
Proportion of ownership interest in associate | 42.50% |
Significant Accounting Polici_4
Significant Accounting Policies and Pronouncements (Narrative) (Details) | 12 Months Ended |
Jul. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Accounts payable repayment period | 30 days |
Trade and other payables repayment period | 12 months |
Significant Accounting Polici_5
Significant Accounting Policies and Pronouncements - Schedule of terms and method used to calculate amortization of tangible assets (Details) | 12 Months Ended |
Jul. 31, 2022 | |
Land | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Amortization method | Not depreciated |
Amortization term | No term |
Buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Amortization method | Straight line |
Amortization term | 5 to 20 years |
Leasehold improvements | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Amortization method | Straight line |
Amortization term | lease term |
Furniture and equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Amortization method | Straight line |
Amortization term | 5 years |
Cultivation and production equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Amortization method | Straight line |
Amortization term | 5 to 20 years |
Vehicles | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Amortization method | Straight line |
Amortization term | 5 years |
Computers | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Amortization method | Straight line |
Amortization term | 3 years |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of cash and cash equivalents (Details) - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 |
Disclosure Of Short Term Investments [Line Items] | |||
Cash and cash equivalents | $ 83,238 | $ 67,462 | $ 184,173 |
Operating cash | |||
Disclosure Of Short Term Investments [Line Items] | |||
Interest rate | 0% | ||
Cash and cash equivalents | $ 75,819 | 31,702 | |
High interest savings accounts | |||
Disclosure Of Short Term Investments [Line Items] | |||
Interest rate | 1.80% | ||
Cash and cash equivalents | $ 7,419 | $ 35,760 |
Significant Accounting Polici_6
Significant Accounting Policies and Pronouncements - Schedule of terms and method used to calculate amortization of intangible assets (Details) | 12 Months Ended |
Jul. 31, 2022 | |
Domain names | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization method | Straight line |
Useful life of finite life intangible assets | 10 years |
Health Canada licenses | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization method | Straight line |
Useful life of finite life intangible assets | 20 years |
Software | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization method | Straight line |
Useful life of finite life intangible assets | 3-5 years |
Patents/Production Know-How | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization method | Straight line |
Useful life of finite life intangible assets | 6-20 years |
Brands | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization method | Straight line |
Useful life of finite life intangible assets | 3 years |
Restricted Funds - Schedule of
Restricted Funds - Schedule of restricted funds (Details) - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 |
Restricted Cash [Line Items] | ||
Restricted funds | $ 32,224 | $ 132,246 |
Letters of credit, collateral and guarantees for purchases | ||
Restricted Cash [Line Items] | ||
Restricted funds | 2,230 | 2,552 |
Restricted cash under terms of the Senior Secured Convertible Note | ||
Restricted Cash [Line Items] | ||
Restricted funds | 0 | 99,696 |
Cash restricted in captive insurance subsidiary | ||
Restricted Cash [Line Items] | ||
Restricted funds | $ 29,994 | $ 29,998 |
Cash Held in Escrow (Narrative)
Cash Held in Escrow (Narrative) (Details) $ in Thousands, $ in Thousands | 1 Months Ended | |||
May 27, 2021 CAD ($) | May 27, 2021 USD ($) | Jul. 31, 2022 CAD ($) | Jul. 31, 2021 CAD ($) | |
Disclosure Of Cash Held In Escrow [Line Items] | ||||
Cash held in escrow | $ 0 | $ 285,779 | ||
Senior Secured Convertible Notes | ||||
Disclosure Of Cash Held In Escrow [Line Items] | ||||
Notional amount | $ 360,000 | |||
Proceeds from issue of bonds, notes and debentures | $ 395,511 | 327,600 | ||
Cash held in escrow | $ 229,320 |
Commodity Taxes Recoverable a_3
Commodity Taxes Recoverable and Other Receivables - Schedule of commodity taxes recoverable and other receivables (Details) - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 |
Commodity Taxes Recoverable And Other Receivables [Abstract] | ||
Commodity taxes recoverable | $ 7,411 | $ 56 |
Lease receivable - current | 0 | 107 |
Cash receivable on settlement of marketable securities | 0 | 2,698 |
Loan receivable | 0 | 5,000 |
Other receivables | 0 | 5,688 |
Total | $ 7,411 | $ 13,549 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Classes of current inventories [abstract] | ||
Inventory expensed to cost of goods sold | $ 282,985 | $ 94,703 |
Inventories at net realizable value | 104,038 | 4,470 |
Write-offs on inventory | 14,297 | 2,182 |
Reversal of inventory impairment | 4,299 | 1,543 |
Fair value component of inventory sold | 43,455 | 31,767 |
Inventory capitalized depreciation costs | 23,715 | 15,677 |
Share based compensation capitalized in inventory | $ 0 | $ 1,505 |
Inventory - Schedule of invento
Inventory - Schedule of inventories (Details) - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 |
Classes Of Inventories [Line Items] | ||
Dried cannabis | $ 54,236 | $ 106,041 |
Purchased dried cannabis | 662 | 1,754 |
Extracts | 3,928 | 16,356 |
Purchased extracts | 478 | 2,247 |
Packaging and supplies | 7,105 | 8,929 |
Total inventory | 66,409 | 135,327 |
Capitalized cost | ||
Classes Of Inventories [Line Items] | ||
Dried cannabis | 30,636 | 81,784 |
Purchased dried cannabis | 662 | 1,754 |
Extracts | 3,928 | 11,945 |
Purchased extracts | 478 | 2,247 |
Packaging and supplies | 7,105 | 8,929 |
Total inventory | 42,809 | 106,659 |
Biological asset fair value adjustment | ||
Classes Of Inventories [Line Items] | ||
Dried cannabis | 23,600 | 24,257 |
Purchased dried cannabis | 0 | 0 |
Extracts | 0 | 4,411 |
Purchased extracts | 0 | 0 |
Packaging and supplies | 0 | 0 |
Total inventory | $ 23,600 | $ 28,668 |
Biological Assets (Narrative) (
Biological Assets (Narrative) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure of detailed information about biological assets [line items] | ||
Disposal of biological assets | $ 3,086 | $ 0 |
Biological Assets - Schedule of
Biological Assets - Schedule of changes in the carrying value of biological assets (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure of detailed information about biological assets [abstract] | ||
Balance, beginning of year | $ 14,284 | $ 7,571 |
Acquired on business combination | 8,352 | 8,892 |
Production costs capitalized | 62,489 | 36,156 |
Net increase in fair value due to biological transformation and estimates | 59,665 | 51,499 |
Harvested cannabis transferred to inventory | (119,432) | (89,834) |
Disposal of biological assets | (3,086) | 0 |
Derecognized on loss of control of subsidiary | (6,366) | 0 |
Balance, end of year | $ 15,906 | $ 14,284 |
Biological Assets - Schedule _2
Biological Assets - Schedule of detailed information about biological assets (Details) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 CAD ($) CAD_per_Driedgram Gram | Jul. 31, 2021 CAD ($) CAD_per_Driedgram Gram | |
Derived from actual retail prices on a per product | ||
Weighted average selling price input values per dried gram | CAD_per_Driedgram | 2.73 | 3.05 |
Sensitivity analysis, impact of variance on selling price to valuation | $ 1,190 | $ 746 |
Obtained through historical harvest cycle results on a per strain basis | ||
Sensitivity analysis, impact of variance on average yield per plant to valuation | 803 | 460 |
Obtained through the estimates of post-harvest cost within the cultivation and production cycle | ||
Sensitivity analysis impact of variance on wastage expectation result in change in valuation | $ 303 | $ 636 |
Minimum | ||
Obtained through historical harvest cycle results on a per strain basis | ||
Average yield per plant | Gram | 82 | 24 |
Obtained through the estimates of post-harvest cost within the cultivation and production cycle | ||
Wastage dependent upon the stage within the harvest cycle | 0.19% | 0.67% |
Maximum | ||
Obtained through historical harvest cycle results on a per strain basis | ||
Average yield per plant | Gram | 1,307 | 116 |
Obtained through the estimates of post-harvest cost within the cultivation and production cycle | ||
Wastage dependent upon the stage within the harvest cycle | 0.63% | 0.84% |
Investments in Associates & J_3
Investments in Associates & Joint Ventures (Narrative) (Details) - Truss LP - CAD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Oct. 04, 2018 | Oct. 31, 2021 | Jul. 31, 2022 | |
Disclosure of joint ventures [line items] | |||
Number of shares held | 42,500 | ||
Proportion of ownership interest in joint venture | 42.50% | ||
Molson Coors Canada (the "Partner") | |||
Disclosure of joint ventures [line items] | |||
Number of shares held | 57,500 | ||
Proportion of ownership interest in joint venture | 57.50% | ||
Discounted cash flow | |||
Disclosure of joint ventures [line items] | |||
Impairment losses | $ 26,925 | $ 30,835 | |
Terminal value growth rate | 3% | ||
Change in impairment loss due to percent change in terminal growth rate | $ 3,098 | ||
Discounted cash flow | Weighted average cost of capital, measurement input | |||
Disclosure of joint ventures [line items] | |||
Post tax discount rate | 15% | ||
Change in impairment loss due to percent change in terminal growth rate | $ 8,394 | ||
Cost value of assets approach | |||
Disclosure of joint ventures [line items] | |||
Market recoverability rate | 53% | ||
Change in impairment loss due to percent change In market recoverability rate | $ 300 |
Investments in Associates & J_4
Investments in Associates & Joint Ventures - Schedule of investment in associate and joint ventures (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure Of Associate And Joint Ventures [Line Items] | ||
Opening Balance | $ 74,679 | $ 76,306 |
Cash consideration of investment | 11,221 | 5,033 |
Disposal | (984) | 0 |
Share of net (loss) | (9,157) | (6,505) |
Impairment | (57,760) | 0 |
Foreign exchange loss through OCI | 0 | (155) |
Ending Balance | 17,999 | 74,679 |
Truss LP | ||
Disclosure Of Associate And Joint Ventures [Line Items] | ||
Opening Balance | 72,873 | 74,966 |
Cash consideration of investment | 8,500 | 4,250 |
Disposal | 0 | 0 |
Share of net (loss) | (7,613) | (6,343) |
Impairment | (57,760) | 0 |
Foreign exchange loss through OCI | 0 | 0 |
Ending Balance | 16,000 | 72,873 |
Other | ||
Disclosure Of Associate And Joint Ventures [Line Items] | ||
Opening Balance | 1,806 | 1,340 |
Cash consideration of investment | 2,721 | 783 |
Disposal | (984) | 0 |
Share of net (loss) | (1,544) | (162) |
Impairment | 0 | 0 |
Foreign exchange loss through OCI | 0 | (155) |
Ending Balance | $ 1,999 | $ 1,806 |
Investments in Associates & J_5
Investments in Associates & Joint Ventures - Schedule of investment in associate and joint ventures - Statement of financial position (Details) - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 |
Disclosure Of Associate And Joint Ventures [Line Items] | |||
Cash and cash equivalents | $ 83,238 | $ 67,462 | $ 184,173 |
Current liabilities | 335,076 | 503,638 | |
Truss LP | |||
Disclosure Of Associate And Joint Ventures [Line Items] | |||
Cash and cash equivalents | 12,640 | 6,757 | |
Other current assets | 11,562 | 7,867 | |
Non-current assets | 63,305 | 67,766 | |
Current liabilities | 8,145 | 11,112 | |
Non-current liabilities | $ 8,420 | $ 8,667 |
Investments in Associates & J_6
Investments in Associates & Joint Ventures - Schedule of investment in associate and joint ventures - Statement of comprehensive loss (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure Of Associate And Joint Ventures [Line Items] | ||
Revenue | $ 191,103 | $ 123,769 |
Operating expenses excluding depreciation and amortization | (992,053) | (134,293) |
Loss from operations | (1,067,725) | (85,495) |
Interest income | 1,651 | 1,601 |
Other income | 18,118 | 4,763 |
Interest expenses | (20,073) | (32,124) |
Income tax expenses | (38,813) | (397) |
Total comprehensive loss | (1,056,285) | (113,610) |
Truss LP | ||
Disclosure Of Associate And Joint Ventures [Line Items] | ||
Revenue | 13,516 | 6,498 |
Operating expenses excluding depreciation and amortization | (16,265) | (14,261) |
Depreciation and amortization | (6,486) | (4,884) |
Other expenses | 0 | 0 |
Loss from operations | (17,289) | (14,643) |
Other income | (64) | 130 |
Interest expenses | (560) | (412) |
Income tax expenses | 0 | 0 |
Total comprehensive loss | $ (17,913) | $ (14,925) |
Investments in Associates & J_7
Investments in Associates & Joint Ventures - Schedule for reconciliation of investment in associate (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 | |
Disclosure Of Associate And Joint Ventures [Line Items] | |||
Total comprehensive loss | $ (1,056,285) | $ (113,610) | |
Impairment loss | (57,760) | 0 | |
Total interest in associate value | 17,999 | 74,679 | $ 76,306 |
Truss LP | |||
Disclosure Of Associate And Joint Ventures [Line Items] | |||
Opening net assets | 70,039 | 74,964 | |
Acquisition of associate/capital calls | 20,000 | 10,000 | |
Total comprehensive loss | (17,913) | (14,925) | |
Closing net assets | $ 72,126 | $ 70,039 | |
Interest in associate | 42.50% | 42.50% | |
Interest in associate value | $ 30,654 | $ 29,767 | |
Fair value of warrant consideration | 42,386 | 42,386 | |
Capitalized transaction costs | 720 | 720 | |
Impairment loss | (57,760) | 0 | |
Total interest in associate value | $ 16,000 | $ 72,873 | $ 74,966 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Narrative) (Details) - CAD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2022 | Apr. 30, 2022 | Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Inventory capitalized depreciation costs | $ 23,715 | $ 15,677 | ||
Depreciation of property, plant and equipment | 7,428 | 6,097 | ||
Impairments | $ 87,412 | 215,003 | 20,230 | |
Sale of property and related assets | 14,794 | 93 | ||
Accumulated depreciation and impairments | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairments | 208,565 | 20,230 | ||
Buildings | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Capitalized borrowing costs | 0 | $ 1,269 | ||
Average annual interest rate | 5.60% | |||
Buildings | Accumulated depreciation and impairments | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairments | 89,581 | $ 160 | ||
Keystone Isolation Technology | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairments | 13,377 | |||
Langley and Montreal facilities | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairments | 17,820 | |||
Langley | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairments | 17,059 | |||
Cultivation and production equipment | Accumulated depreciation and impairments | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairments | $ 11,470 | $ 2,104 | ||
Zenabis Global Ltd | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Impairments | $ 98,022 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of property, plant and equipment (Details) - CAD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2022 | Jul. 31, 2022 | Jul. 31, 2021 | |
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | $ 393,902 | $ 285,366 | |
Impairments | $ 87,412 | 215,003 | 20,230 |
Property, plant and equipment at end of period | 285,866 | 393,902 | |
Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 515,011 | 365,916 | |
Business acquisitions | 135,527 | 129,074 | |
Additions | 27,612 | 20,814 | |
Disposals, property, plant and equipment | (29,764) | (1,121) | |
Transfers | (6,843) | 328 | |
Held for sale | (25,221) | ||
Loss of control | (113,546) | ||
Property, plant and equipment at end of period | 502,776 | 515,011 | |
Accumulated depreciation and impairments | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 121,109 | 80,550 | |
Depreciation | 31,143 | 21,774 | |
Disposals, property, plant and equipment | (21,670) | (964) | |
Transfers | (10,586) | (481) | |
Impairments | 208,565 | 20,230 | |
Held for sale | (4,940) | ||
Loss of control | (106,711) | ||
Property, plant and equipment at end of period | 216,910 | 121,109 | |
Land | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 2,449 | 1,349 | |
Property, plant and equipment at end of period | 9,093 | 2,449 | |
Land | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 2,756 | 1,656 | |
Business acquisitions | 8,941 | 1,100 | |
Additions | 61 | 0 | |
Disposals, property, plant and equipment | 0 | 0 | |
Transfers | (307) | 0 | |
Held for sale | (1,766) | ||
Loss of control | (592) | ||
Property, plant and equipment at end of period | 9,093 | 2,756 | |
Land | Accumulated depreciation and impairments | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 307 | 307 | |
Depreciation | 0 | 0 | |
Disposals, property, plant and equipment | 0 | 0 | |
Transfers | (307) | 0 | |
Impairments | 462 | 0 | |
Held for sale | 0 | ||
Loss of control | (462) | ||
Property, plant and equipment at end of period | 0 | 307 | |
Buildings | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 244,159 | 151,237 | |
Property, plant and equipment at end of period | 187,366 | 244,159 | |
Buildings | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 265,902 | 164,949 | |
Business acquisitions | 59,856 | 95,788 | |
Additions | 602 | 1,213 | |
Disposals, property, plant and equipment | (971) | 1 | |
Transfers | (523) | 3,951 | |
Held for sale | (11,967) | ||
Loss of control | (84,865) | ||
Property, plant and equipment at end of period | 228,034 | 265,902 | |
Buildings | Accumulated depreciation and impairments | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 21,743 | 13,712 | |
Depreciation | 11,143 | 7,981 | |
Disposals, property, plant and equipment | 0 | 0 | |
Transfers | (329) | (110) | |
Impairments | 89,581 | 160 | |
Held for sale | (1,868) | ||
Loss of control | (79,602) | ||
Property, plant and equipment at end of period | 40,668 | 21,743 | |
Leasehold improvements | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 38,900 | 23,430 | |
Property, plant and equipment at end of period | 759 | 38,900 | |
Leasehold improvements | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 42,151 | 24,439 | |
Business acquisitions | 545 | 0 | |
Additions | (36) | 63 | |
Disposals, property, plant and equipment | (587) | 0 | |
Transfers | 546 | 17,649 | |
Held for sale | 0 | ||
Loss of control | 0 | ||
Property, plant and equipment at end of period | 42,619 | 42,151 | |
Leasehold improvements | Accumulated depreciation and impairments | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 3,251 | 1,009 | |
Depreciation | 2,028 | 2,173 | |
Disposals, property, plant and equipment | (498) | 0 | |
Transfers | (5) | (16) | |
Impairments | 37,084 | 85 | |
Held for sale | 0 | ||
Loss of control | 0 | ||
Property, plant and equipment at end of period | 41,860 | 3,251 | |
Cultivation and production equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 26,854 | 24,770 | |
Property, plant and equipment at end of period | 75,312 | 26,854 | |
Cultivation and production equipment | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 42,716 | 33,461 | |
Business acquisitions | 58,063 | 6,154 | |
Additions | 15,511 | 2,284 | |
Disposals, property, plant and equipment | (3,946) | (67) | |
Transfers | (2,106) | 884 | |
Held for sale | (7,944) | ||
Loss of control | (8,428) | ||
Property, plant and equipment at end of period | 93,866 | 42,716 | |
Cultivation and production equipment | Accumulated depreciation and impairments | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 15,862 | 8,691 | |
Depreciation | 11,931 | 5,145 | |
Disposals, property, plant and equipment | (260) | 0 | |
Transfers | (4,328) | (78) | |
Impairments | 11,470 | 2,104 | |
Held for sale | (2,188) | ||
Loss of control | (13,933) | ||
Property, plant and equipment at end of period | 18,554 | 15,862 | |
Furniture, computers, vehicles and equipment | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 20,977 | 14,730 | |
Property, plant and equipment at end of period | 1,622 | 20,977 | |
Furniture, computers, vehicles and equipment | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 29,131 | 18,871 | |
Business acquisitions | 2,053 | 8,578 | |
Additions | 141 | 294 | |
Disposals, property, plant and equipment | (3,577) | 0 | |
Transfers | (3,070) | 1,388 | |
Held for sale | (3,151) | ||
Loss of control | (3,013) | ||
Property, plant and equipment at end of period | 18,514 | 29,131 | |
Furniture, computers, vehicles and equipment | Accumulated depreciation and impairments | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 8,154 | 4,141 | |
Depreciation | 4,245 | 4,229 | |
Disposals, property, plant and equipment | (612) | 0 | |
Transfers | 138 | (277) | |
Impairments | 5,698 | 61 | |
Held for sale | (884) | ||
Loss of control | 153 | ||
Property, plant and equipment at end of period | 16,892 | 8,154 | |
Construction in progress | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 42,956 | 49,145 | |
Property, plant and equipment at end of period | 9,594 | 42,956 | |
Construction in progress | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 91,946 | 98,135 | |
Business acquisitions | 4,076 | 395 | |
Additions | 11,333 | 16,960 | |
Disposals, property, plant and equipment | (223) | 0 | |
Transfers | (1,033) | (23,544) | |
Held for sale | (393) | ||
Loss of control | 411 | ||
Property, plant and equipment at end of period | 106,117 | 91,946 | |
Construction in progress | Accumulated depreciation and impairments | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 48,990 | 48,990 | |
Depreciation | 0 | 0 | |
Disposals, property, plant and equipment | 0 | 0 | |
Transfers | (5,405) | 0 | |
Impairments | 48,746 | 0 | |
Held for sale | 0 | ||
Loss of control | 4,192 | ||
Property, plant and equipment at end of period | 96,523 | 48,990 | |
Right-of-Use assets | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 17,607 | 20,705 | |
Property, plant and equipment at end of period | 2,120 | 17,607 | |
Right-of-Use assets | Cost | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 40,409 | 24,405 | |
Business acquisitions | 1,993 | 17,059 | |
Additions | 0 | 0 | |
Disposals, property, plant and equipment | (20,460) | (1,055) | |
Transfers | (350) | 0 | |
Held for sale | 0 | ||
Loss of control | (17,059) | ||
Property, plant and equipment at end of period | 4,533 | 40,409 | |
Right-of-Use assets | Accumulated depreciation and impairments | |||
Reconciliation of changes in property, plant and equipment [abstract] | |||
Property, plant and equipment at beginning of period | 22,802 | 3,700 | |
Depreciation | 1,796 | 2,246 | |
Disposals, property, plant and equipment | (20,300) | (964) | |
Transfers | (350) | 0 | |
Impairments | 15,524 | 17,820 | |
Held for sale | 0 | ||
Loss of control | (17,059) | ||
Property, plant and equipment at end of period | $ (2,413) | $ 22,802 |
Assets Held for Sale - Schedule
Assets Held for Sale - Schedule of assets held for sale (Details) $ in Thousands | 12 Months Ended |
Jul. 31, 2022 CAD ($) | |
Assets Held For Sale [Line Items] | |
Beginning balance | $ 0 |
Ending balance | 5,121 |
Non-current assets held for sale [member] | |
Assets Held For Sale [Line Items] | |
Beginning balance | 0 |
Business acquisitions | 2,513 |
Additions | 20,281 |
Disposals | (4,234) |
Impairment loss | (6,438) |
Loss of control of subsidiary | (7,001) |
Ending balance | 5,121 |
Non-current assets held for sale [member] | Land | |
Assets Held For Sale [Line Items] | |
Beginning balance | 0 |
Business acquisitions | 1,873 |
Additions | 1,765 |
Disposals | (974) |
Impairment loss | (794) |
Loss of control of subsidiary | (508) |
Ending balance | 1,362 |
Non-current assets held for sale [member] | Buildings | |
Assets Held For Sale [Line Items] | |
Beginning balance | 0 |
Business acquisitions | 366 |
Additions | 10,100 |
Disposals | (3,246) |
Impairment loss | 0 |
Loss of control of subsidiary | (5,938) |
Ending balance | 1,281 |
Non-current assets held for sale [member] | Cultivation and production equipment | |
Assets Held For Sale [Line Items] | |
Beginning balance | 0 |
Business acquisitions | 274 |
Additions | 5,756 |
Disposals | 0 |
Impairment loss | (5,185) |
Loss of control of subsidiary | 0 |
Ending balance | 845 |
Non-current assets held for sale [member] | Furniture, computers, vehicles and equipment | |
Assets Held For Sale [Line Items] | |
Beginning balance | 0 |
Business acquisitions | 0 |
Additions | 2,267 |
Disposals | (14) |
Impairment loss | (379) |
Loss of control of subsidiary | (241) |
Ending balance | 1,633 |
Non-current assets held for sale [member] | Construction in progress | |
Assets Held For Sale [Line Items] | |
Beginning balance | 0 |
Business acquisitions | 0 |
Additions | 393 |
Disposals | 0 |
Impairment loss | (80) |
Loss of control of subsidiary | (313) |
Ending balance | $ 0 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - CAD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2022 | Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure of detailed information about intangible assets [line items] | |||
Research and development expense | $ 3,216 | $ 3,835 | |
Impairment loss on intangible assets | $ 140,839 | $ 0 | |
Canadian Cannabis CGU | |||
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss on intangible assets | $ 140,839 | ||
Cultivating and processing license | |||
Disclosure of detailed information about intangible assets [line items] | |||
Recoverable amount | 26,556 | ||
Impairment loss on recoverable amount | $ 45,000 | ||
Decrease in gross margin rate | 10% | ||
Decrease in recoverable amount after assumptions | $ 6,771 | ||
Change in recoverable amount with-or-without approach | 8,066 | ||
Impairment loss on intangible assets | 27,950 | ||
Brands | |||
Disclosure of detailed information about intangible assets [line items] | |||
Recoverable amount | 47,000 | ||
Impairment loss on recoverable amount | $ 43,754 | ||
Decrease in gross margin rate | 10% | ||
Change in recoverable amount with-or-without approach | $ 5,061 | ||
Impairment loss on intangible assets | 12,697 | ||
Know-How asset | |||
Disclosure of detailed information about intangible assets [line items] | |||
Recoverable amount | 14,000 | ||
Impairment loss on recoverable amount | $ 11,438 | ||
Decrease in gross margin rate | 5% |
Intangible Assets - Schedule of
Intangible Assets - Schedule of intangible assets and other longer-term assets (Details) - CAD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2022 | Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | $ 50,608 | $ 16,008 | |
Impairment | 140,839 | 0 | |
Ending balance | 94,343 | 50,608 | |
Cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 166,879 | 131,101 | |
Additions | 7,084 | 2,336 | |
Business acquisitions | 198,837 | 34,314 | |
Disposals | (872) | ||
Loss of control | (34,314) | ||
Ending balance | 338,486 | 166,879 | |
Accumulated depreciation and impairments | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | (116,271) | (115,093) | |
Amortization | 21,347 | 2,050 | |
Impairment | 140,839 | ||
Disposals | (872) | ||
Loss of control | (34,314) | ||
Ending balance | (244,143) | (116,271) | |
Cultivating and processing license | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 33,625 | 5,476 | |
Impairment | $ 27,950 | ||
Ending balance | 27,193 | 33,625 | |
Cultivating and processing license | Cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 145,347 | 116,433 | |
Additions | 0 | 0 | |
Business acquisitions | 73,079 | 28,914 | |
Disposals | 0 | ||
Loss of control | (28,914) | ||
Ending balance | 189,512 | 145,347 | |
Cultivating and processing license | Accumulated depreciation and impairments | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | (111,722) | (110,957) | |
Amortization | 6,561 | 765 | |
Impairment | 72,950 | ||
Disposals | 0 | ||
Loss of control | (28,914) | ||
Ending balance | (162,319) | (111,722) | |
Brands | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 11,670 | 6,440 | |
Impairment | $ 12,697 | ||
Ending balance | 44,558 | 11,670 | |
Brands | Cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 13,840 | 8,440 | |
Additions | 0 | 0 | |
Business acquisitions | 97,200 | 5,400 | |
Disposals | 0 | ||
Loss of control | (5,400) | ||
Ending balance | 105,640 | 13,840 | |
Brands | Accumulated depreciation and impairments | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | (2,170) | (2,000) | |
Amortization | 7,862 | 170 | |
Impairment | 56,450 | ||
Disposals | 0 | ||
Loss of control | (5,400) | ||
Ending balance | (61,082) | (2,170) | |
Software | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 2,368 | 1,744 | |
Ending balance | 6,556 | 2,368 | |
Software | Cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 4,384 | 3,710 | |
Additions | 6,494 | 1,546 | |
Business acquisitions | 1,221 | 0 | |
Disposals | (872) | ||
Loss of control | 0 | ||
Ending balance | 12,099 | 4,384 | |
Software | Accumulated depreciation and impairments | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | (2,016) | (1,966) | |
Amortization | 3,527 | 922 | |
Impairment | 0 | ||
Disposals | (872) | ||
Loss of control | 0 | ||
Ending balance | (5,543) | (2,016) | |
Domain names | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 401 | 460 | |
Ending balance | 342 | 401 | |
Domain names | Cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 585 | 585 | |
Additions | 0 | 0 | |
Business acquisitions | 0 | 0 | |
Disposals | 0 | ||
Loss of control | 0 | ||
Ending balance | 585 | 585 | |
Domain names | Accumulated depreciation and impairments | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | (184) | (125) | |
Amortization | 59 | 59 | |
Impairment | 0 | ||
Disposals | 0 | ||
Loss of control | 0 | ||
Ending balance | (243) | (184) | |
Patents | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 2,544 | 1,888 | |
Ending balance | 15,694 | 2,544 | |
Patents | Cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | 2,723 | 1,933 | |
Additions | 590 | 790 | |
Business acquisitions | 27,337 | 0 | |
Disposals | 0 | ||
Loss of control | 0 | ||
Ending balance | 30,650 | 2,723 | |
Patents | Accumulated depreciation and impairments | |||
Disclosure of detailed information about intangible assets [line items] | |||
Beginning balance | (179) | (45) | |
Amortization | 3,338 | 134 | |
Impairment | 11,439 | ||
Disposals | 0 | ||
Loss of control | 0 | ||
Ending balance | $ (14,956) | $ (179) |
Business Acquisitions and Los_3
Business Acquisitions and Loss of Control (Narrative) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 01, 2021 CAD ($) Share Year $ / shares | Jun. 01, 2021 CAD ($) Share Year $ / shares | Aug. 30, 2021 CAD ($) Share | Jul. 31, 2022 CAD ($) Share Year $ / shares | Jul. 31, 2021 CAD ($) Share Year $ / shares | |
Disclosure of detailed information about business combination [line items] | |||||
Risk free interest rate of options | 0.98% | 1.24% | |||
Expected life of options (years) | Year | 5 | 5 | |||
Expected volatility, share options granted | 93% | 85% | |||
Exercise price of options granted | $ / shares | $ 6.84 | $ 17.03 | |||
Lending of convertible debenture receivable | $ 0 | $ 19,500 | |||
Net revenue | 191,103 | 123,769 | |||
Net loss | (1,073,608) | (114,814) | |||
48 North Cannabis Corp. | |||||
Disclosure of detailed information about business combination [line items] | |||||
Percentage of voting equity interests acquired | 100% | ||||
Exchange ratio | 0.02366 | ||||
Settlement of pre-existing debt | $ 5,000 | ||||
Value of subordinated secured bridge loan | 5,000 | ||||
Fair value of subordinated secured bridge loan | $ 5,000 | ||||
Net revenue | 2,209 | ||||
Net loss | 26,634 | ||||
Shares issued | Share | 5,352,005 | ||||
48 North Cannabis Corp. | Warrant reserves | |||||
Disclosure of detailed information about business combination [line items] | |||||
Volatility rate of warrants | 101% | ||||
Stock price of warrants | $ / shares | $ 3.1 | ||||
48 North Cannabis Corp. | Warrant reserves | Minimum | |||||
Disclosure of detailed information about business combination [line items] | |||||
Risk free rate of warrants | 0.39% | ||||
Expected life of warrants | 1 year | ||||
Exercise price of warrants | $ / shares | $ 6.34 | ||||
48 North Cannabis Corp. | Warrant reserves | Maximum | |||||
Disclosure of detailed information about business combination [line items] | |||||
Risk free rate of warrants | 0.53% | ||||
Expected life of warrants | 3 years | ||||
Exercise price of warrants | $ / shares | $ 72.7 | ||||
48 North Cannabis Corp. | Replacement Options | |||||
Disclosure of detailed information about business combination [line items] | |||||
Expected volatility, share options granted | 101% | ||||
Stock price of options | $ / shares | $ 3.1 | ||||
48 North Cannabis Corp. | Replacement Options | Minimum | |||||
Disclosure of detailed information about business combination [line items] | |||||
Risk free interest rate of options | 0.31% | ||||
Expected life of options (years) | Year | 0.16 | ||||
Exercise price of options granted | $ / shares | $ 6.33 | ||||
48 North Cannabis Corp. | Replacement Options | Maximum | |||||
Disclosure of detailed information about business combination [line items] | |||||
Risk free interest rate of options | 0.51% | ||||
Expected life of options (years) | Year | 2.59 | ||||
Exercise price of options granted | $ / shares | $ 46.03 | ||||
Redecan | |||||
Disclosure of detailed information about business combination [line items] | |||||
Percentage of voting equity interests acquired | 100% | ||||
Working capital estimate | $ 4,500 | ||||
Estimated surplus above working capital | 2,173 | ||||
Cash consideration held in escrow | 5,000 | ||||
Cultivation and processing license | $ 73,079 | ||||
Percentage of decrease in valuation cultivation and processing license | 10% | ||||
Decrease in valuation of cultivation and processing license | $ 18,300 | ||||
Reduce valuation of cultivation and production ramp up | 21,800 | ||||
Cash transferred | 402,173 | ||||
Amount of cash consideration under purchase agreement | 400,000 | ||||
Value of accretive market share and product offerings price | $ 94,700 | ||||
Percentage of forecasted royalty rate | 10% | ||||
Amount of increase decrease in valuation of brand | $ 9,500 | ||||
Know-how intangible asset | $ 27,337 | ||||
Percentage of increase in estimated incremental margin | 5% | ||||
Amount of estimated incremental margin of valuation of asset | $ 12,426 | ||||
Net revenue | 60,011 | ||||
Net loss | 5,699 | ||||
Increase in net revenue based on management estimates if acquisition had occurred earlier | 6,787 | ||||
Increase in net loss based on management estimates if acquisition had occurred earlier | 5,810 | ||||
Total expensed commission and transaction costs | $ 22,636 | ||||
Shares issued | Share | 69,721,116 | 256,776 | |||
Zenabis Global Inc | |||||
Disclosure of detailed information about business combination [line items] | |||||
Percentage of voting equity interests acquired | 100% | ||||
Exchange ratio | 0.01772 | ||||
Lending of convertible debenture receivable | $ 19,500 | ||||
Convertible debentures interest rate | 8% | ||||
Settlement of pre-existing debt | $ 20,760 | ||||
Cultivation and processing license | $ 28,914 | ||||
Percentage of decrease in valuation cultivation and processing license | 10% | ||||
Decrease in valuation of cultivation and processing license | $ 6,336 | ||||
Reduce valuation of cultivation and production ramp up | $ 18,665 | ||||
Net revenue | 6,800 | ||||
Net loss | 1,513 | ||||
Increase in net revenue based on management estimates if acquisition had occurred earlier | 54,746 | ||||
Increase in net loss based on management estimates if acquisition had occurred earlier | 9,078 | ||||
Total expensed commission and transaction costs | 9,634 | ||||
Share-based compensation | $ 3,614 | ||||
Shares issued | Share | 17,579,336 | 448,639 | |||
Deconsolidated amount of balance sheet | $ 82,000 | ||||
Deconsolidated amount of cash | 3,400 | ||||
Deconsolidated amount of inventory and biological assets | 29,600 | ||||
Deconsolidated amount of property plant and equipment and assets held for sale | 13,800 | ||||
Deconsolidated amount of secured debenture of other assets and liabilities | 55,500 | ||||
Deconsolidated amount of other assets and liabilities | 21,000 | ||||
Gain on derecognition of net asset | 25,000 | ||||
Related party transactions | $ 1,763 | ||||
Zenabis Global Inc | Warrant reserves | |||||
Disclosure of detailed information about business combination [line items] | |||||
Volatility rate of warrants | 96% | ||||
Stock price of warrants | $ / shares | $ 8.61 | ||||
Zenabis Global Inc | Warrant reserves | Minimum | |||||
Disclosure of detailed information about business combination [line items] | |||||
Risk free rate of warrants | 0.31% | ||||
Expected life of warrants | 3 months 25 days | ||||
Exercise price of warrants | $ / shares | $ 3.96 | ||||
Zenabis Global Inc | Warrant reserves | Maximum | |||||
Disclosure of detailed information about business combination [line items] | |||||
Risk free rate of warrants | 0.74% | ||||
Expected life of warrants | 4 years 4 months 6 days | ||||
Exercise price of warrants | $ / shares | $ 151.24 | ||||
Zenabis Global Inc | Replacement Options | |||||
Disclosure of detailed information about business combination [line items] | |||||
Expected volatility, share options granted | 96% | ||||
Stock price of options | $ / shares | $ 8.61 | ||||
Zenabis Global Inc | Replacement Options | Minimum | |||||
Disclosure of detailed information about business combination [line items] | |||||
Risk free interest rate of options | 0.31% | ||||
Expected life of options (years) | Year | 0.25 | ||||
Exercise price of options granted | $ / shares | $ 2.54 | ||||
Zenabis Global Inc | Replacement Options | Maximum | |||||
Disclosure of detailed information about business combination [line items] | |||||
Risk free interest rate of options | 0.74% | ||||
Expected life of options (years) | Year | 4.49 | ||||
Exercise price of options granted | $ / shares | $ 234.7 |
Business Acquisitions and Los_4
Business Acquisitions and Loss of Control - Schedule of business acquisition (Details) $ / shares in Units, $ in Thousands | Jul. 31, 2022 CAD ($) Share | Sep. 01, 2021 CAD ($) Share $ / shares shares | Aug. 30, 2021 CAD ($) Share $ / shares | Jul. 31, 2021 CAD ($) Share | Jun. 01, 2021 CAD ($) Share $ / shares shares | Jul. 31, 2020 CAD ($) |
Non-current assets | ||||||
Goodwill | $ 0 | $ 88,189 | $ 0 | |||
Non-current liabilities | ||||||
Non-controlling interest | $ 0 | $ (1,340) | ||||
48 North Cannabis Corp. | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Shares issued | Share | 5,352,005 | |||||
Par value of shares issued | $ / shares | $ 3.1 | |||||
Value of shares issued | $ 16,591 | |||||
Number of Replacement warrants outstanding | shares | 1,554,320 | |||||
Value of Replacement warrants outstanding | $ 769 | |||||
Number of Replacement options issued | shares | 17,766 | |||||
Value of Replacement options issued | $ 18 | |||||
Settlement of pre-existing debt | 5,000 | |||||
Total fair value of consideration | 22,378 | |||||
Current assets | ||||||
Cash and cash equivalents | 989 | |||||
Accounts receivable | 1,263 | |||||
Other receivables | 259 | |||||
Prepaid expenses | 2,962 | |||||
Inventory | 5,040 | |||||
Biological assets | 875 | |||||
Assets held for sale | 2,513 | |||||
Non-current assets | ||||||
Property, plant and equipment | 9,683 | |||||
Intangible assets | 2,500 | |||||
Goodwill | 11,453 | |||||
Total assets | 37,537 | |||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | (10,580) | |||||
Excise taxes payable | (555) | |||||
Lease liability - current | (178) | |||||
Non-current liabilities | ||||||
Lease Liability | (553) | |||||
Term Loan | (3,293) | |||||
Total liabilities | (15,159) | |||||
Total net assets acquired | $ 22,378 | |||||
Redecan | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Cash | $ 402,173 | |||||
Shares issued | Share | 256,776 | 69,721,116 | ||||
Par value of shares issued | $ / shares | $ 3.07 | |||||
Value of shares issued | $ 214,044 | |||||
Total fair value of consideration | 616,217 | |||||
Current assets | ||||||
Cash and cash equivalents | 20,027 | |||||
Accounts receivable | 9,795 | |||||
Prepaid expenses | 4,366 | |||||
Excise taxes receivable | 2,566 | |||||
Inventory | 37,229 | |||||
Biological assets | 7,476 | |||||
Income tax recoverable | 4,947 | |||||
Non-current assets | ||||||
Property, plant and equipment | 125,844 | |||||
Cultivation and processing license | 73,079 | |||||
Brands | 94,700 | |||||
Know-how intangible asset | 27,337 | |||||
Intangible assets | 1,221 | |||||
Goodwill | 275,397 | |||||
Total assets | 683,984 | |||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | (4,340) | |||||
Excise taxes payable | (1,125) | |||||
Lease liability - current | (144) | |||||
Income Tax Payable | (188) | |||||
Non-current liabilities | ||||||
Lease Liability | (1,117) | |||||
Deferred tax liabilities | (60,853) | |||||
Total liabilities | (67,767) | |||||
Total net assets acquired | $ 616,217 | |||||
Zenabis Global Inc | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Shares issued | Share | 448,639 | 17,579,336 | ||||
Par value of shares issued | $ / shares | $ 8.61 | |||||
Value of shares issued | $ 151,358 | |||||
Number of Replacement warrants outstanding | shares | 5,970,370 | |||||
Value of Replacement warrants outstanding | $ 32,354 | |||||
Number of Replacement options issued | shares | 905,902 | |||||
Value of Replacement options issued | $ 5,727 | |||||
Number of Replacement RSU's and DSU's issued | shares | 223,497 | |||||
Value of Replacement RSU's and DSU's issued | $ 1,554 | |||||
Settlement of pre-existing debt | 20,760 | |||||
Total fair value of consideration | 211,753 | |||||
Current assets | ||||||
Cash and cash equivalents | 2,804 | |||||
Accounts receivable | 3,822 | |||||
Other receivables | 198 | |||||
Excise taxes receivable | 86 | |||||
Inventory | 40,636 | |||||
Biological assets | 8,892 | |||||
Non-current assets | ||||||
Property, plant and equipment | 129,074 | |||||
Prepaid expenses | 5,670 | |||||
Cultivation and processing license | 28,914 | |||||
Brands | 5,400 | |||||
Goodwill | 88,189 | |||||
Total assets | 313,685 | |||||
Current liabilities | ||||||
Accounts payable and accrued liabilities | (22,161) | |||||
Loans | (52,194) | |||||
Convertible debentures | (11,724) | |||||
Non-current liabilities | ||||||
Lease Liability | (17,059) | |||||
Deferred tax liabilities | (134) | |||||
Total liabilities | (103,272) | |||||
Non-controlling interest | 1,340 | |||||
Total net assets acquired | $ 211,753 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - CAD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2022 | Jul. 31, 2022 | Jul. 31, 2021 | Jun. 01, 2021 | Jul. 31, 2020 | |
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Goodwill impairment loss | $ (375,039) | $ 0 | |||
Goodwill | $ 0 | $ 88,189 | $ 0 | ||
Market-based approach | |||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Adjusted control premium | 20% | ||||
Share price declined | 5% | ||||
Increase in impairment loss | $ 18,000 | ||||
Income based approach | |||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Adjusted control premium | 5% | ||||
Decrease in recoverable amount of goodwill | $ 15,000 | ||||
Income based approach | DCF analysis, Cash flows | |||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Decrease in short-term growth rate | 5% | ||||
Decrease in recoverable amount of goodwill | $ 26,931 | ||||
Income based approach | DCF analysis, Terminal value growth rate | |||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Terminal value growth rate | 2% | ||||
Decrease in short-term growth rate | 1% | ||||
Decrease in recoverable amount of goodwill | $ 31,806 | ||||
Income based approach | DCF analysis, Post-tax discount rate | |||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Post tax discount rate | 14.30% | ||||
Increase in post tax discount rate | 1% | ||||
Decrease in recoverable amount of goodwill | $ 28,383 | ||||
Zenabis Global Ltd | |||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||
Goodwill | $ 88,189 |
Goodwill - Schedule of reconcil
Goodwill - Schedule of reconciliation of changes in goodwill (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Balance | $ 88,189 | $ 0 |
Impairment | (375,039) | 0 |
Balance | 0 | 88,189 |
Zenabis Global Ltd | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Acquisition | $ 88,189 | |
Redecan | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Acquisition | 275,397 | |
48North | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Acquisition | $ 11,453 |
Warrant Liabilities (Narrative)
Warrant Liabilities (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Aug. 24, 2021 | Jan. 21, 2020 | Dec. 31, 2019 | Jul. 31, 2022 | Jul. 31, 2021 | |
Warrant Liabilities [Line Items] | |||||
Number of warrants issued | 24,540,012 | 0 | |||
August Underwritten Public Offering | |||||
Warrant Liabilities [Line Items] | |||||
Proceeds from direct offering | $ 144,800 | ||||
Number of warrants issued | 24,540,012 | ||||
Exercise price of warrants issued | $ 3.45 | ||||
USD$20,000 Registered Direct Offering | |||||
Warrant Liabilities [Line Items] | |||||
Proceeds from direct offering | $ 20,000 | ||||
Number of warrants issued | 1,497,007 | ||||
Exercise price of warrants issued | $ 9.8 | ||||
US$25,000 Registered Direct Offering | |||||
Warrant Liabilities [Line Items] | |||||
Proceeds from direct offering | $ 25,000 | ||||
Number of warrants issued | 1,871,259 | ||||
Exercise price of warrants issued | $ 9.8 |
Warrant Liabilities - Schedule
Warrant Liabilities - Schedule of warrant liabilities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Warrant Liabilities [Line Items] | ||
Opening balance | $ 5,733 | $ 3,450 |
Issued | 39,255 | |
(Gain) Loss in revaluation of financial instruments | (44,271) | 2,283 |
Ending balance | 717 | 5,733 |
US$25,000 Registered Direct Offering | ||
Warrant Liabilities [Line Items] | ||
Opening balance | 3,186 | 1,917 |
Issued | 0 | |
(Gain) Loss in revaluation of financial instruments | (3,178) | 1,269 |
Ending balance | 8 | 3,186 |
USD$20,000 Registered Direct Offering | ||
Warrant Liabilities [Line Items] | ||
Opening balance | 2,547 | 1,533 |
Issued | 0 | |
(Gain) Loss in revaluation of financial instruments | (2,541) | 1,014 |
Ending balance | 6 | 2,547 |
August 2021 Underwritten Public Offering | ||
Warrant Liabilities [Line Items] | ||
Opening balance | 0 | 0 |
Issued | 39,255 | |
(Gain) Loss in revaluation of financial instruments | (38,552) | 0 |
Ending balance | $ 703 | $ 0 |
Warrant Liabilities - Schedul_2
Warrant Liabilities - Schedule of fair value assumptions for warrants (Details) | 5 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 USD ($) $ / $ $ / shares shares | Jan. 20, 2020 USD ($) $ / $ $ / shares shares | Jul. 31, 2022 USD ($) $ / $ $ / shares shares | Aug. 24, 2021 USD ($) $ / $ $ / shares shares | Jul. 31, 2021 USD ($) $ / $ $ / shares shares | Jul. 31, 2020 shares | |
Warrant Liabilities [Line Items] | ||||||
Number of warrants | 59,582,216 | 36,666,958 | 33,379,408 | |||
August Underwritten Public Offering | ||||||
Warrant Liabilities [Line Items] | ||||||
Number of warrants | 24,540,012 | 24,540,012 | ||||
Share price | $ / shares | $ 0.19 | $ 2.58 | ||||
Expected life (years) | 3 years | 2 years 6 months | ||||
Dividend | $ | $ 0 | $ 0 | ||||
Volatility | 101% | 96% | ||||
Risk free rate | 2.98% | 0.84% | ||||
Exchange rate (USD/CAD) | $ / $ | 1.2824 | 1.2608 | ||||
USD$20,000 Registered Direct Offering | ||||||
Warrant Liabilities [Line Items] | ||||||
Number of warrants | 1,497,007 | 1,497,007 | 1,497,007 | |||
Share price | $ / shares | $ 5.8 | $ 0.19 | $ 3.97 | |||
Expected life (years) | 2 years 6 months | 2 years 4 months 28 days | 2 years 6 months | |||
Dividend | $ | $ 0 | $ 0 | $ 0 | |||
Volatility | 80% | 101% | 95% | |||
Risk free rate | 1.57% | 2.98% | 0.38% | |||
Exchange rate (USD/CAD) | $ / $ | 1.3116 | 1.2824 | 1.2462 | |||
US$25,000 Registered Direct Offering | ||||||
Warrant Liabilities [Line Items] | ||||||
Number of warrants | 1,871,259 | 1,871,259 | 1,871,259 | |||
Share price | $ / shares | $ 6.36 | $ 0.19 | $ 3.97 | |||
Expected life (years) | 2 years 6 months | 2 years 4 months 28 days | 2 years 6 months | |||
Dividend | $ | $ 0 | $ 0 | $ 0 | |||
Volatility | 79% | 101% | 95% | |||
Risk free rate | 1.71% | 2.98% | 0.38% | |||
Exchange rate (USD/CAD) | $ / $ | 1.2988 | 1.2824 | 1.2462 |
Convertible Debentures (Narrati
Convertible Debentures (Narrative) (Details) - CAD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | ||||||
Jun. 01, 2021 | Jun. 10, 2020 | Dec. 05, 2019 | Jun. 30, 2020 | May 31, 2020 | Jul. 31, 2022 | Jul. 31, 2021 | |
Unsecured convertible debenture- March 2019 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Interest rate | 6% | ||||||
Conversion price | $ 147.29 | ||||||
Unsecured convertible debenture- December 2019 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Principal amount of debentures | $ 70,000 | $ 40,140 | $ 40,140 | ||||
Interest rate | 8% | ||||||
Conversion price | $ 12.64 | ||||||
Minimum daily volume weighted average trading price of common shares specified for conversion of debentures | $ 30 | ||||||
Number of consecutive trading days | 15 days | ||||||
Discounted early conversion price of conversion units | $ 3.2 | ||||||
Description of conversion units | Each Conversion Unit provided the holder one common share and one-half common share purchase warrant (with an exercise price of $4.00 and term of three years). | ||||||
Exercise price of conversion units | $ 4 | ||||||
Conversion unit, term | three years | ||||||
Accrued and unpaid interest | $ 291 | $ 483 | |||||
Unsecured convertible debenture- December 2019 | First phase | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Conversion of convertible debenture amount | $ 23,595 | ||||||
Stock issued for conversion of convertible securities | 3,686,721 | ||||||
Unsecured convertible debenture- December 2019 | Second phase | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Conversion of convertible debenture amount | $ 6,265 | ||||||
Stock issued for conversion of convertible securities | 978,907 |
Convertible Debentures - Schedu
Convertible Debentures - Schedule of unsecured convertible debenture (Details) - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | |||
Total convertible loans and debentures | $ 38,301 | $ 36,495 | |
Current | 38,301 | 3,406 | |
Non-Current | 0 | 33,089 | |
Unsecured convertible debenture- March 2019 | |||
Disclosure of detailed information about borrowings [line items] | |||
Total convertible loans and debentures | 0 | 3,406 | $ 0 |
Unsecured convertible debenture- December 2019 | |||
Disclosure of detailed information about borrowings [line items] | |||
Total convertible loans and debentures | $ 38,301 | $ 33,089 | $ 28,969 |
Convertible Debentures - Sche_2
Convertible Debentures - Schedule of convertible debentures (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure of detailed information about borrowings [line items] | ||
Beginning balance | $ 36,495 | |
Interest paid | (3,211) | $ (3,583) |
Ending balance | 38,301 | 36,495 |
Unsecured convertible debenture- March 2019 | ||
Disclosure of detailed information about borrowings [line items] | ||
Beginning balance | 3,406 | 0 |
Acquired on business combination | 3,722 | |
Interest payments | (372) | |
Interest expense | 55 | 56 |
Debt repayment | (3,461) | |
Ending balance | 0 | 3,406 |
Unsecured convertible debenture- December 2019 | ||
Disclosure of detailed information about borrowings [line items] | ||
Beginning balance | 33,089 | 28,969 |
Interest expense | 8,423 | 7,331 |
Interest paid | (3,211) | (3,211) |
Ending balance | $ 38,301 | $ 33,089 |
Senior Secured Convertible No_3
Senior Secured Convertible Note (Narrative) (Details) $ / shares in Units, $ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Jul. 12, 2022 $ / shares shares | Jan. 18, 2022 CAD ($) | May 27, 2021 CAD ($) shares | May 27, 2021 USD ($) shares | Jul. 31, 2022 CAD ($) shares | Jul. 31, 2022 USD ($) shares | Jul. 31, 2021 CAD ($) | Jul. 31, 2022 USD ($) | May 27, 2021 USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||||||
Gain on fair value due to changes in credit spread, net of tax | $ | $ 17,091 | $ 1,169 | |||||||
Senior Secured Convertible Notes | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Notes and debentures issued | $ 434,628 | $ 360,000 | |||||||
Proceeds from issue of bonds, notes and debentures | $ 395,511 | $ 327,600 | |||||||
Percentage of principal amount of notes sold | 91% | 91% | |||||||
Percent of principal amount if not converted or redeemed earlier | 110% | 110% | |||||||
Redemption amount | $ 10,111 | $ 478,091 | $ 396,000 | ||||||
Number of shares issued per $1 USD principal amount of notes | 142.6533 | 142.6533 | 142.6533 | 142.6533 | |||||
Percentage of principal outstanding | 115% | 115% | |||||||
Amount immediately payable in event of default | $ 259,981 | $ 199,755 | |||||||
Common shares issued as compensation for amendment | 56,100,000 | ||||||||
Number of share rights issued | 11,674,266 | ||||||||
Percentage of principal amount of convertible note payable | 12% | ||||||||
Share price per share right | $ / shares | $ 400 | ||||||||
Percentage of product at original conversion rate | 115% | 115% | |||||||
Gain on fair value due to changes in credit spread, net of tax | $ | $ 23,964 | $ 1,590 | |||||||
Unrecognized day 1 loss | $ 96,200 | $ 79,700 | |||||||
Percentage of optional redemptions | 110% |
Senior Secured Convertible No_4
Senior Secured Convertible Note - Schedule of fair value of the note is classified as Level 2 in fair value hierarchy (Details) - Senior Secured Convertible Notes $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 12, 2022 $ / shares | May 21, 2021 CAD ($) $ / shares | Jul. 31, 2021 CAD ($) $ / shares | Jul. 12, 2021 CAD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||
Share price | $ / shares | $ 0.2 | $ 6.53 | $ 3.98 | |
Dividend | $ | $ 0 | $ 0 | $ 0 | |
Volatility | 81% | 85% | 85% | |
Risk-free rate | 3.57% | 0.227% | 0.327% | |
Credit spread | 38.57% | 16.06% | 15.44% |
Senior Secured Convertible No_5
Senior Secured Convertible Note - Schedule of detailed information about extinguishment of debt (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Senior Secured Convertible Note [Abstract] | ||
Carrying value of Senior secured convertible note pre-amendment | $ 259,981 | |
Fair value of common shares and share rights issued on amendment | (17,900) | |
Transaction costs | (12,987) | |
Fair value of Amended senior secured convertible note | (208,560) | |
Net gain on extinguishment of debt | $ 20,534 | $ 0 |
Senior Secured Convertible No_6
Senior Secured Convertible Note - Schedule of senior secured convertible note (Details) - Senior Secured Convertible Notes $ in Thousands, $ in Thousands | 12 Months Ended | |||||
Jul. 31, 2022 CAD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2021 CAD ($) | Jul. 31, 2021 USD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||||
Opening balance, beginning of the year | $ 454,673 | $ 364,847 | $ 0 | $ 0 | ||
Issued at fair value | 0 | 0 | 491,714 | 407,284 | ||
Early conversions | 0 | 0 | (497) | (413) | ||
Redemptions | (223,148) | (177,017) | (33,525) | (27,500) | ||
Gain on fair value adjustment | (15,784) | (11,925) | (18,100) | (14,524) | ||
Foreign exchange loss | 12,672 | 0 | 15,081 | 0 | ||
Balance upon amendment | 259,981 | 199,755 | 454,673 | 364,847 | ||
Deferred financing costs | ||||||
Opening balance, beginning of the year | 86,974 | 72,214 | 0 | 0 | ||
Unrecognized loss deferred at issuance | 0 | 0 | (96,203) | (79,684) | ||
Recognized loss during the period | 86,974 | 72,214 | 9,229 | 7,470 | ||
Ending balance, end of the period | 0 | $ 0 | (86,974) | $ (72,214) | ||
Total balance, end of period, net | $ 259,981 | $ 367,699 | $ 199,755 | $ 292,633 |
Amended Senior Secured Conver_3
Amended Senior Secured Convertible Note (Narrative) (Details) $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Millions | 12 Months Ended | ||||
Jul. 12, 2022 USD ($) | Jul. 31, 2022 CAD ($) $ / shares | Jul. 31, 2022 CAD ($) $ / shares | Jul. 31, 2022 $ / shares | Jul. 31, 2021 CAD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||
Minimum liquidity covenant | Furthermore, the Company remains subject to, amongst others, a minimum liquidity covenant of US$20 million under the | ||||
Amended Senior Secured Convertible Note | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest rate | 5% | 5% | |||
Unpaid interest | $ 464 | $ 464 | $ 0 | ||
Conversion price | (per share) | $ 0.4 | $ 0.31 | |||
Minimum daily volume weighted average trading price of common shares specified for conversion of amended convertible note | $ / shares | $ 3 | ||||
Minimum liquidity covenant | Among other covenants, the Company is subject to a minimum liquidity covenant and is required to maintain an unrestricted cash amount equal to or greater than US$20.0 million. In addition, as of the last day of each three-month period starting with the three-month period ending April 30, 2023, the Company is required to have Adjusted EBITDA of not less than US$1.00 for the three-month period ending on such day. | ||||
Percentage of increase decrease of credit spread | 1% | ||||
Fair value of increase decrease of credit spread | $ 2,487 | ||||
Amended Senior Secured Convertible Note | Tilray Brands Inc. | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Loans and borrowings | $ 173.7 | ||||
Finance cost monthly fees | $ 1.5 |
Amended Senior Secured Conver_4
Amended Senior Secured Convertible Note - Schedule of convertible notes payable (Details) - 12 months ended Jul. 31, 2022 - Amended Senior Secured Convertible Note $ in Thousands, $ in Thousands | CAD ($) | USD ($) |
Disclosure of detailed information about borrowings [line items] | ||
Balance upon amendment (Note 19) | $ 208,560 | $ 160,246 |
Gain on fair value during the year | 4,880 | 3,805 |
Foreign exchange loss | (3,061) | 0 |
Ending balance, end of the year | $ 210,379 | $ 164,051 |
Amended Senior Secured Conver_5
Amended Senior Secured Convertible Note - Schedule of convertible note payable, fair value inputs (Details) - Amended Senior Secured Convertible Note $ / shares in Units, $ / shares in Units, $ in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 12, 2022 CAD ($) $ / shares | Jul. 31, 2022 USD ($) $ / shares | Jul. 31, 2022 USD ($) $ / shares | |
Disclosure of detailed information about borrowings [line items] | |||
Share price | $ 0.2 | $ 0.19 | |
Dividend | $ 0 | $ 0 | $ 0 |
Volatility | 80.70% | 87.80% | 87.80% |
Credit spread | 38.60% | 34.20% | 34.20% |
Conversion price | (per share) | $ 0.4 | $ 0.31 | |
Minimum | |||
Disclosure of detailed information about borrowings [line items] | |||
Conversion price | $ 0.3 | ||
Maximum | |||
Disclosure of detailed information about borrowings [line items] | |||
Conversion price | $ 0.31 |
Lease Liabilities (Narrative) (
Lease Liabilities (Narrative) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Operating Lease [Line Items] | ||
Expense relating to variable lease | $ 3,200 | $ 3,885 |
Belleville Ontario | ||
Operating Lease [Line Items] | ||
Penalty fee | 2,380 | |
Estimated fair market value of asset surrendered | 160 | |
Accrued liability associated with transferring the lease back to the lessor | 525 | |
Gain on lease termination | $ 22,680 |
Lease Liabilities - Schedule of
Lease Liabilities - Schedule of lease liabilities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Operating Lease [Line Items] | ||
Balance | $ 43,885 | $ 29,116 |
Assumed on business combination | 1,992 | 17,059 |
Lease disposals | (789) | |
Lease additions | 29 | |
Lease terminations | (24,300) | |
Lease payments | (6,054) | (4,835) |
Interest expense on lease liabilities | 4,197 | 3,334 |
Derecognition due to loss of control | (16,909) | |
Balance | 2,840 | 43,885 |
Current | 914 | 1,730 |
Non-current | $ 1,926 | $ 42,155 |
Lease Liabilities - Schedule _2
Lease Liabilities - Schedule of lease obligations over next five fiscal years (Details) $ in Thousands | Jul. 31, 2022 CAD ($) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Lease obligations | $ 3,700 |
2024 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Lease obligations | 1,026 |
2024 - 2025 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Lease obligations | 1,174 |
2026 - 2027 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Lease obligations | 300 |
Thereafter | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Lease obligations | $ 1,200 |
Senior Notes Payable (Narrative
Senior Notes Payable (Narrative) (Details) - Senior Notes Payable - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 0 | $ 50,159 | $ 0 |
Zenabis Global Inc | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 51,875 | ||
Borrowings, interest rate | 14% |
Senior Notes Payable - Schedule
Senior Notes Payable - Schedule of senior notes payable (Details) - Senior Notes Payable - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure of detailed information about borrowings [line items] | ||
Balance upon amendment (Note 19) | $ 50,159 | $ 0 |
Assumed on business combination | 0 | 50,138 |
Interest paid | (5,095) | (1,210) |
Interest expense | 6,604 | 1,231 |
Deconsolidated due to loss of control | (51,668) | 0 |
Ending balance, end of the year | 0 | 50,159 |
Current portion | 0 | 50,159 |
Long-term portion | $ 0 | $ 0 |
Share Capital (Narrative) (Deta
Share Capital (Narrative) (Details) $ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
May 12, 2022 CAD ($) shares | May 11, 2021 CAD ($) | Dec. 11, 2020 | Nov. 17, 2021 CAD ($) shares | Aug. 24, 2021 CAD ($) shares | Aug. 24, 2021 USD ($) shares | May 25, 2021 CAD ($) | Jun. 16, 2020 CAD ($) | Jul. 31, 2022 CAD ($) shares | Jul. 31, 2021 CAD ($) shares | Jul. 31, 2020 shares | |
Disclosure of classes of share capital [line items] | |||||||||||
Post-consolidation common share ratio | 4:1 | ||||||||||
Regain compliance description | During the year ended July 31, 2022 the Company failed to the meet the NASDAQ's US$1.00 minimum share price. On July 27, 2022, the Company received an 180 day extension to regain compliance status. | ||||||||||
Number of shares | shares | 600,988,447 | 152,645,946 | 120,616,441 | ||||||||
Share issue related cost | $ 3,612 | ||||||||||
May 2021 At-the-market ("ATM") Offering | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares | shares | 6,373,926 | ||||||||||
Proceeds from issuing shares | $ 46,987 | ||||||||||
Share issue related cost | $ 1,730 | ||||||||||
May 2021 At-the-market ("ATM") Offering | Maximum | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Proceeds from issuing shares | $ 150,000 | ||||||||||
June 2020 At-the-market ("ATM") Offering | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares | shares | 244,875 | ||||||||||
June 2020 At-the-market ("ATM") Offering | Maximum | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Proceeds from issuing shares | $ 34,500 | ||||||||||
August 2021 Underwritten Public Offering | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares | shares | 49,325,424 | 49,325,424 | |||||||||
Proceeds from issuing units | $ 183,103 | $ 144,786 | |||||||||
Number of units issued | shares | 49,325,424 | 49,325,424 | |||||||||
Number of common share purchase warrants issued | shares | 24,540,012 | 24,540,012 | |||||||||
Fair value of warrants issued | $ 39,255 | ||||||||||
Number of broker compensation common shares issued | shares | 245,400 | 245,400 | |||||||||
Value of broker compensation | $ 834 | ||||||||||
Share issue related cost | 8,069 | ||||||||||
At-the-Market ("ATM") Program | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Share issue related cost | $ 603 | ||||||||||
Additional proceeds from issuing shares | $ 27,869 | ||||||||||
Additional number of shares issued | shares | 24,290,117 | ||||||||||
At-the-Market ("ATM") Program | Maximum | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Proceeds from issuing shares | $ 150,000 | ||||||||||
Equity line of credit - Standby commitment fee | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares | shares | 10,843,373 | 10,843,373 | |||||||||
Proceeds from issuing shares | $ 3,795 | ||||||||||
Letter of Intent | $ 180,000 | ||||||||||
Amended and restated senior secured convertible note | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares | shares | 18,537,834 | ||||||||||
Proceeds from issuing shares | $ 4,913 | ||||||||||
Senior secured convertible note | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares | shares | 256,776 | ||||||||||
Proceeds from issuing shares | $ 1,251 |
Share Capital - Schedule of iss
Share Capital - Schedule of issued and outstanding common shares) (Details) - CAD ($) $ in Thousands | Jul. 31, 2022 | May 12, 2022 | Jul. 31, 2021 | Jul. 31, 2020 |
Disclosure of classes of share capital [line items] | ||||
Number of shares | 600,988,447 | 152,645,946 | 120,616,441 | |
Share capital | $ 1,889,768 | $ 1,267,967 | $ 1,023,788 | |
May 2021 at the market offering, net | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 6,373,926 | |||
Share capital | $ 45,257 | |||
June 2020 at the market offering | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 244,875 | |||
Share capital | $ 0 | |||
Senior secured convertible note, net | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 4,602,241 | |||
Share capital | $ 29,540 | |||
Acquisition shares - Zenabis | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 17,579,336 | |||
Share capital | $ 151,358 | |||
Transaction costs | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 448,639 | |||
Share capital | $ 3,612 | |||
Acquisition shares - Redecan, net | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 69,721,116 | |||
Share capital | $ 213,746 | |||
48 North Cannabis Corp. | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 5,352,005 | |||
Share capital | $ 16,486 | |||
At-the-Market program, net of costs | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 24,290,117 | |||
Share capital | $ 27,266 | |||
August 2021 Underwritten Public Offering | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 49,080,024 | |||
Share capital | $ 135,645 | |||
Redemptions of senior secured convertible note, net | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 202,224,566 | |||
Share capital | $ 199,818 | |||
Amended senior secured convertible note | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 67,774,266 | |||
Share capital | $ 17,900 | |||
Equity line of credit standby commitment fee | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 10,843,373 | 10,843,373 | ||
Share capital | $ 3,795 | |||
Advisor and broker compensation | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 19,040,010 | |||
Share capital | $ 6,998 | |||
Exercise of warrants | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 2,146,931 | |||
Share capital | $ 9,932 | |||
Exercise of stock options | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 17,024 | 410,051 | ||
Share capital | $ 147 | $ 3,213 | ||
Exercise of equity settled RSUs | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares | 223,506 | |||
Share capital | $ 1,267 |
Common Share Purchase Warrant_2
Common Share Purchase Warrants (Narrative) (Details) - shares | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure Of Common Share Purchase Warrants [Line Items] | ||
Number of warrants expired | 3,179,074 | 535,889 |
Cashless exercises | ||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||
Number of warrants expired | 509,089 |
Common Share Purchase Warrant_3
Common Share Purchase Warrants - Schedule of warrant activity (Details) - $ / shares | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure Of Common Share Purchase Warrants [Abstract] | ||
Number of warrants Outstanding, beginning of year | 36,666,958 | 33,379,408 |
Weighted average exercise price, Outstanding, beginning of year | $ 8.85 | $ 7.6 |
Number of warrants Expired and cancelled during period | (3,179,074) | (535,889) |
Weighted average exercise price, Expired and cancelled during period | $ 33.86 | $ 4.09 |
Number of warrants Issued on acquisition | 1,554,320 | 5,970,370 |
Weighted average exercise price, Issued on acquisition | $ 22.43 | $ 14.59 |
Number of warrants Issued | 24,540,012 | 0 |
Weighted average exercise price, Warrants issued during period | $ 4.35 | $ 0 |
Number of warrants Exercised during period | 0 | (2,146,931) |
Weighted average exercise price, Exercised during period | $ 0 | $ 4.1 |
Number of warrants Outstanding, end of year | 59,582,216 | 36,666,958 |
Weighted average exercise price, Outstanding, end of year | $ 6.07 | $ 8.85 |
Common Share Purchase Warrant_4
Common Share Purchase Warrants - Schedule of warrants issued (Details) - $ / shares | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure Of Common Share Purchase Warrants [Line Items] | ||
Number of warrants issued | 24,540,012 | 0 |
June 01, 2021 | ||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||
Warrants assumed and issued through acquisition | 5,970,370 | |
June 01, 2021 | Minimum | ||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||
Warrants exercise price | $ 3.96 | |
Expiry period | 2 months 1 day | |
June 01, 2021 | Maximum | ||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||
Warrants exercise price | $ 155.19 | |
Expiry period | 4 years | |
August 24, 2021 | ||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||
Warrants exercise price | $ 3.45 | |
Warrants assumed and issued through acquisition | 24,540,012 | |
Expiry period | 5 years | |
September 1, 2021 | ||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||
Warrants assumed and issued through acquisition | 1,554,320 | |
September 1, 2021 | Minimum | ||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||
Warrants exercise price | $ 6.42 | |
Expiry period | 1 year 7 months 17 days | |
September 1, 2021 | Maximum | ||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||
Warrants exercise price | $ 72.7 | |
Expiry period | 2 years 7 months 2 days |
Common Share Purchase Warrant_5
Common Share Purchase Warrants - Schedule of warrants outstanding (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jul. 31, 2022 CAD ($) $ / shares shares | Jul. 31, 2022 $ / shares | Jul. 31, 2021 CAD ($) shares | Jul. 31, 2020 shares | |
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 59,582,216 | 36,666,958 | 33,379,408 | |
Net book value | $ | $ 83,112 | $ 129,845 | ||
Classified as Equity | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 31,673,938 | 33,298,692 | ||
Net book value | $ | $ 82,395 | $ 124,112 | ||
Classified as Equity | June 2019 financing warrants Exercise price of $63.16 expiring June 19, 2023 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 546,135 | 546,135 | ||
Net book value | $ | $ 10,023 | $ 10,022 | ||
Warrants exercise price | $ / shares | $ 63.16 | |||
Warrants expiration date | Jun. 19, 2023 | |||
Classified as Equity | April 2020 underwritten public offering warrants Exercise price of $3.84 expiring April 13, 2025 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 11,830,075 | 11,830,075 | ||
Net book value | $ | $ 15,971 | $ 15,971 | ||
Warrants exercise price | $ / shares | $ 3.84 | |||
Warrants expiration date | Apr. 13, 2025 | |||
Classified as Equity | May 2020 underwritten public offering warrants Exercise price of $4.20 expiring May 21, 2025 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 7,591,876 | 7,591,876 | ||
Net book value | $ | $ 10,446 | $ 10,446 | ||
Warrants exercise price | $ / shares | $ 4.2 | |||
Warrants expiration date | May 21, 2025 | |||
Classified as Equity | Conversion Unit warrants Exercise price of $4.00 expiring June 10, 2023 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 3,686,721 | 3,686,721 | ||
Net book value | $ | $ 11,427 | $ 11,427 | ||
Warrants exercise price | $ / shares | $ 4 | |||
Warrants expiration date | Jun. 10, 2023 | |||
Classified as Equity | Conversion Unit warrants Exercise price of $4.00 expiring June 30, 2023 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 978,907 | 978,907 | ||
Net book value | $ | $ 1,928 | $ 1,928 | ||
Warrants exercise price | $ / shares | $ 4 | |||
Warrants expiration date | Jun. 30, 2023 | |||
Classified as Equity | Broker/Consultant warrants Exercise price of $3.00 expiring November 3, 2021 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 0 | 18,905 | ||
Net book value | $ | $ 0 | $ 34 | ||
Warrants exercise price | $ / shares | $ 3 | |||
Warrants expiration date | Nov. 03, 2021 | |||
Classified as Equity | Broker/consultant warrants Exercise price of $3.00 expiring March 14, 2022 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 0 | 23,571 | ||
Net book value | $ | $ 0 | $ 66 | ||
Warrants exercise price | $ / shares | $ 3 | |||
Warrants expiration date | Mar. 14, 2022 | |||
Classified as Equity | Broker/consultant warrants Exercise price of $63.16 expiring June 19, 2023 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 15 | 15 | ||
Net book value | $ | $ 0 | $ 0 | ||
Warrants exercise price | $ / shares | $ 63.16 | |||
Warrants expiration date | Jun. 19, 2023 | |||
Classified as Equity | Molson warrants Exercise price of $24.00 expiring October 4, 2021 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 0 | 2,875,000 | ||
Net book value | $ | $ 0 | $ 42,386 | ||
Warrants exercise price | $ / shares | $ 24 | |||
Warrants expiration date | Oct. 04, 2021 | |||
Classified as Equity | Issued in connection with business acquisition Exercise price of $151.24 expiring September 27, 2021 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 0 | 14,617 | ||
Net book value | $ | $ 0 | $ 0 | ||
Warrants exercise price | $ / shares | $ 151.24 | |||
Warrants expiration date | Sep. 27, 2021 | |||
Classified as Equity | Issued in connection with business acquisition Exercise price of $155.19 expiring April 17, 2022 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 0 | 226,422 | ||
Net book value | $ | $ 0 | $ 1 | ||
Warrants exercise price | $ / shares | $ 155.19 | |||
Warrants expiration date | Apr. 17, 2022 | |||
Classified as Equity | Issued in connection with business acquisition Exercise price of $78.16 expiring August 21, 2022 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 15,992 | 15,992 | ||
Net book value | $ | $ 3 | $ 3 | ||
Warrants exercise price | $ / shares | $ 78.16 | |||
Warrants expiration date | Aug. 21, 2022 | |||
Classified as Equity | Issued in connection with business acquisition Exercise price of $102.71 expiring August 21, 2022 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 24,338 | 24,338 | ||
Net book value | $ | $ 2 | $ 2 | ||
Warrants exercise price | $ / shares | $ 102.71 | |||
Warrants expiration date | Aug. 21, 2022 | |||
Classified as Equity | Issued in connection with business acquisition Exercise price of $11.29 expiring January 27, 2023 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 356,689 | 356,689 | ||
Net book value | $ | $ 1,195 | $ 1,195 | ||
Warrants exercise price | $ / shares | $ 11.29 | |||
Warrants expiration date | Jan. 27, 2023 | |||
Classified as Equity | Issued In Connection With Business Acquisition Exercise Price Of $10.99 expiring April 16, 2023 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 680,877 | 0 | ||
Net book value | $ | $ 398 | $ 0 | ||
Warrants exercise price | $ / shares | $ 10.99 | |||
Warrants expiration date | Apr. 16, 2023 | |||
Classified as Equity | Issued In Connection With Business Acquisition Exercise Price Of $12.68 expiring May 4, 2023 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 602,804 | 0 | ||
Net book value | $ | $ 322 | $ 0 | ||
Warrants exercise price | $ / shares | $ 12.68 | |||
Warrants expiration date | May 04, 2023 | |||
Classified as Equity | Issued In Connection With Business Acquisition Exercise Price Of $72.70 expiring April 2, 2024 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 250,080 | 0 | ||
Net book value | $ | $ 49 | $ 0 | ||
Warrants exercise price | $ / shares | $ 72.7 | |||
Warrants expiration date | Apr. 02, 2024 | |||
Classified as Equity | Issued in connection with business acquisition Exercise price of $3.96 expiring April 23, 2025 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 631,322 | 631,322 | ||
Net book value | $ | $ 4,232 | $ 4,232 | ||
Warrants exercise price | $ / shares | $ 3.96 | |||
Warrants expiration date | Apr. 23, 2025 | |||
Classified as Equity | Issued in connection with business acquisition Exercise price of $9.03 expiring June 25, 2025 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 3,205,378 | 3,205,378 | ||
Net book value | $ | $ 18,236 | $ 18,236 | ||
Warrants exercise price | $ / shares | $ 9.03 | |||
Warrants expiration date | Jun. 25, 2025 | |||
Classified as Equity | Issued in connection with business acquisition Exercise price of $5.64 expiring September 23, 2025 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 1,228,873 | 1,228,873 | ||
Net book value | $ | $ 7,902 | $ 7,902 | ||
Warrants exercise price | $ / shares | $ 5.64 | |||
Warrants expiration date | Sep. 23, 2025 | |||
Classified as Equity | Issued in connection with business acquisition Exercise price of $8.47 expiring October 30, 2025 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 43,856 | 43,856 | ||
Net book value | $ | $ 261 | $ 261 | ||
Warrants exercise price | $ / shares | $ 8.47 | |||
Warrants expiration date | Oct. 30, 2025 | |||
Classified as Liability | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 27,908,278 | 3,368,266 | ||
Net book value | $ | $ 717 | $ 5,733 | ||
Classified as Liability | USD$25m Registered Direct Offering Warrants Exercise price of USD$9.80 expiring December 31, 2024 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 1,871,259 | 1,871,259 | ||
Net book value | $ | $ 8 | $ 3,185 | ||
Warrants exercise price | $ / shares | $ 9.8 | |||
Warrants expiration date | Dec. 31, 2024 | |||
Classified as Liability | USD$20m Registered Direct Offering Warrants Exercise price of USD$9.80 expiring January 22, 2025 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 1,497,007 | 1,497,007 | ||
Net book value | $ | $ 6 | $ 2,548 | ||
Warrants exercise price | $ / shares | 9.8 | |||
Warrants expiration date | Jan. 22, 2025 | |||
Classified as Liability | August 2021 Underwritten Public Offerings Warrants Exercise price of US$3.45 expiring August 24, 2026 | ||||
Disclosure Of Common Share Purchase Warrants [Line Items] | ||||
Number of outstanding warrants | shares | 24,540,012 | 0 | ||
Net book value | $ | $ 703 | $ 0 | ||
Warrants exercise price | $ / shares | $ 3.45 | |||
Warrants expiration date | Aug. 24, 2026 |
Share-based Compensation (Narra
Share-based Compensation (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2022 CAD ($) Share shares | Jul. 31, 2021 CAD ($) Share shares | Jul. 31, 2020 Share | |
Stock Options And Restricted Share Units [Line Items] | |||
Number of share options issued and outstanding | 24,687,068 | 12,018,143 | 7,503,691 |
Amount of stock based compensation allocated to inventory | $ | $ 211 | $ 1,506 | |
Number of RSUs vested | shares | 2,195,909 | ||
Omnibus Plan | |||
Stock Options And Restricted Share Units [Line Items] | |||
Description of maximum term of options granted for share-based payment arrangement | Expiry dates are up to 10 years from issuance, as determined by the Board of Directors at the time of issuance. | ||
Expiry period of RSUs | 10 years | ||
Maximum percentage of common shares reserved for issuance for options | 10% | ||
Maximum number of common shares reserved for issuance for options | shares | 60,098,845 | 15,264,595 | |
Number of share options issued and outstanding | 23,415,128 | ||
Maximum percentage of RSU authorized to issue for common shares inclusive of outstanding stock options | 10% | ||
Former Plan | |||
Stock Options And Restricted Share Units [Line Items] | |||
Number of share options issued and outstanding | 747,244 | ||
Assumed plan from business combinations | |||
Stock Options And Restricted Share Units [Line Items] | |||
Number of share options issued and outstanding | 524,696 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of stock option activity (Details) | 12 Months Ended | |
Jul. 31, 2022 Share $ / shares | Jul. 31, 2021 Share $ / shares | |
Disclosure Of Detailed Information About Share Based Compensation [Abstract] | ||
Number of options, Opening balance | Share | 12,018,143 | 7,503,691 |
Weighted average exercise price, Opening balance | $ / shares | $ 10.63 | $ 16.3 |
Options Granted | Share | 17,851,906 | 5,273,906 |
Weighted average exercise price, Granted | $ / shares | $ 0.73 | $ 5.21 |
Replacement options issued on acquisition | Share | 162,009 | 905,902 |
Weighted average exercise price, replacement options issued on acquisition | $ / shares | $ 7.19 | $ 3.81 |
Options Forfeited | Share | (4,714,233) | (630,473) |
Weighted average exercise price, Forfeited | $ / shares | $ 4.47 | $ 12.8 |
Options Expired | Share | (613,733) | (624,832) |
Weighted average exercise price, Expired | $ / shares | $ 22.2 | $ 25.95 |
Options Exercised | Share | (17,024) | (410,051) |
Weighted average exercise price, Exercised | $ / shares | $ 2.54 | $ 3 |
Number of options, Closing balance | Share | 24,687,068 | 12,018,143 |
Weighted average exercise price, Closing balance | $ / shares | $ 0.73 | $ 10.63 |
Share-based Compensation - Sc_2
Share-based Compensation - Schedule of stock options granted (Details) | 12 Months Ended | |
Jul. 31, 2022 Share $ / shares | Jul. 31, 2021 Share $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Exercise price, share options granted | $ / shares | $ 6.84 | $ 17.03 |
Options granted | 17,851,906 | 5,273,906 |
Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 13,850,340 | 1,385,489 |
Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 4,001,566 | 3,888,417 |
Stock option grant date October 30, 2020 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | October 30, 2020 | |
Exercise price, share options granted | $ / shares | $ 3.88 | |
Options granted | 665,010 | |
Expiry period | 10 years | |
Stock option grant date October 30, 2020 | Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 349,652 | |
Stock option grant date October 30, 2020 | Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 315,358 | |
Stock option grant date December 22, 2020 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | December 22, 2020 | |
Exercise price, share options granted | $ / shares | $ 5.44 | |
Options granted | 1,340,773 | |
Expiry period | 10 years | |
Stock option grant date December 22, 2020 | Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 380,673 | |
Stock option grant date December 22, 2020 | Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 960,100 | |
Stock option grant date April 28, 2021 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | April 28, 2021 | |
Exercise price, share options granted | $ / shares | $ 7.54 | |
Options granted | 85,389 | |
Expiry period | 10 years | |
Stock option grant date April 28, 2021 | Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 0 | |
Stock option grant date April 28, 2021 | Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 85,389 | |
Stock option grant date June 17, 2021 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | June 17, 2021 | |
Exercise price, share options granted | $ / shares | $ 7.43 | |
Options granted | 120,613 | |
Expiry period | 10 years | |
Stock option grant date June 17, 2021 | Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 75,000 | |
Stock option grant date June 17, 2021 | Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 45,613 | |
Stock option grant date July 29, 2021 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | July 29, 2021 | |
Exercise price, share options granted | $ / shares | $ 5.24 | |
Options granted | 3,062,121 | |
Expiry period | 10 years | |
Stock option grant date July 29, 2021 | Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 580,164 | |
Stock option grant date July 29, 2021 | Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 2,481,957 | |
Stock option grant date November 1, 2021 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | November 1, 2021 | |
Exercise price, share options granted | $ / shares | $ 1.86 | |
Options granted | 3,275,193 | |
Expiry period | 10 years | |
Stock option grant date November 1, 2021 | Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 2,327,613 | |
Stock option grant date November 1, 2021 | Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 947,580 | |
Stock option grant date March 21, 2022 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 21, 2022 | |
Exercise price, share options granted | $ / shares | $ 0.75 | |
Options granted | 4,745,103 | |
Expiry period | 10 years | |
Stock option grant date March 21, 2022 | Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 2,491,034 | |
Stock option grant date March 21, 2022 | Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 2,254,069 | |
Stock Option Grant Date April 28, 2022 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | April 28, 2022 | |
Exercise price, share options granted | $ / shares | $ 0.51 | |
Options granted | 3,017,817 | |
Expiry period | 10 years | |
Stock Option Grant Date April 28, 2022 | Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 2,839,660 | |
Stock Option Grant Date April 28, 2022 | Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 178,157 | |
Stock option grant date June 16, 2022 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | June 16, 2022 | |
Exercise price, share options granted | $ / shares | $ 0.28 | |
Options granted | 6,813,793 | |
Expiry period | 10 years | |
Stock option grant date June 16, 2022 | Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 6,192,033 | |
Stock option grant date June 16, 2022 | Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Options granted | 621,760 |
Share-based Compensation - Sc_3
Share-based Compensation - Schedule of stock options outstanding (Details) - Share | 12 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding | 24,687,068 | 12,018,143 | 7,503,691 |
Number exercisable | 10,660,491 | ||
Exercise Price $0.28-$0.75 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding | 13,984,612 | ||
Options outstanding, Weighted average remaining contractual life (years) | 9 years 9 months 10 days | ||
Number exercisable | 1,925,669 | ||
Options exercisable, Weighted average remaining contractual life (years) | 9 years 7 months 24 days | ||
Exercise Price $1.86-$9.92 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding | 7,422,273 | ||
Options outstanding, Weighted average remaining contractual life (years) | 7 years 10 months 24 days | ||
Number exercisable | 5,497,265 | ||
Options exercisable, Weighted average remaining contractual life (years) | 7 years 6 months 18 days | ||
Exercise Price $10.76-$34.00 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Number outstanding | 3,280,183 | ||
Options outstanding, Weighted average remaining contractual life (years) | 6 years 5 months 15 days | ||
Number exercisable | 3,237,557 | ||
Options exercisable, Weighted average remaining contractual life (years) | 6 years 5 months 15 days |
Share-based Compensation - Sc_4
Share-based Compensation - Schedule of restricted share units activity (Details) - Restricted Share Units ("RSUs") share-based compensation | 12 Months Ended | |
Jul. 31, 2022 Share $ / shares | Jul. 31, 2021 Share $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Opening balance | Share | 550,832 | 587,108 |
Opening balance, value of units | $ 7.91 | $ 8.41 |
Granted | Share | 1,517,236 | 24,008 |
Granted, value of units | $ 1.74 | |
Replacement units issued on acquisition | Share | 0 | 223,506 |
Replacement units issued on acquisition, value of units | $ 0 | $ 8.61 |
Exercised - equity settled | Share | 0 | (223,506) |
Exercised - equity settled, value of units | $ 0 | $ 8.61 |
Exercised - cash settled | Share | 0 | (25,483) |
Exercised - cash settled, value of units | $ 0 | |
Forfeited | Share | (34,801) | (34,801) |
Forfeited, value of units | $ 3.3 | $ 11.76 |
Closing balance | Share | 2,033,267 | 550,832 |
Closing balance, Value of units | $ 3.24 | $ 7.91 |
Minimum | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Granted, value of units | 3.17 | |
Exercised - cash settled, value of units | 5.62 | |
Maximum | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Granted, value of units | 7.17 | |
Exercised - cash settled, value of units | $ 8.6 |
Share-based Compensation - Sc_5
Share-based Compensation - Schedule of restricted share units granted (Details) | 12 Months Ended | |
Jul. 31, 2022 Share $ / shares | Jul. 31, 2021 Share $ / shares | |
Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
RSUs granted | 1,517,236 | 24,008 |
October 30, 2020 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Unit value | $ / shares | $ 3.16 | |
Expiry period of RSUs | 10 years | |
October 30, 2020 | Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
RSUs granted | 7,161 | |
October 30, 2020 | Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
RSUs granted | 0 | |
June 17, 2021 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Unit value | $ / shares | $ 7.17 | |
Expiry period of RSUs | 10 years | |
June 17, 2021 | Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
RSUs granted | 9,413 | |
June 17, 2021 | Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
RSUs granted | 0 | |
July 29, 2021 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Unit value | $ / shares | $ 5.38 | |
Expiry period of RSUs | 10 years | |
July 29, 2021 | Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
RSUs granted | 7,434 | |
July 29, 2021 | Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
RSUs granted | 0 | |
November 1, 2021 | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Unit value | $ / shares | $ 1.74 | |
Expiry period of RSUs | 10 years | |
November 1, 2021 | Executive and directors | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
RSUs granted | 1,517,236 | |
November 1, 2021 | Non-executive employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
RSUs granted | 0 |
Share-based Compensation - Sc_6
Share-based Compensation - Schedule of deferred share units activity (Details) - Deferred Share Units ("DSUs") share-based compensation | 12 Months Ended | |
Jul. 31, 2022 Share $ / shares | Jul. 31, 2021 Share $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Opening balance | Share | 0 | 0 |
Opening balance, value of units | $ / shares | $ 0 | $ 0 |
Granted | Share | 4,088,386 | 0 |
Granted, value of units | $ / shares | $ 0.72 | $ 0 |
Closing balance | Share | 4,088,386 | 0 |
Closing balance, Value of units | $ / shares | $ 240 | $ 0 |
Share-based Compensation - Sc_7
Share-based Compensation - Schedule of fair value of stock options and restricted share units granted (Details) | 12 Months Ended | |
Jul. 31, 2022 Year $ / shares | Jul. 31, 2021 Year $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Exercise price (weighted average) | $ 6.84 | $ 17.03 |
Share price (weighted average) | $ 6.69 | $ 17.19 |
Risk-free interest rate (weighted average) | 0.98% | 1.24% |
Expected life (years) of options (weighted average) | Year | 5 | 5 |
Expected annualized volatility (weighted average) | 93% | 85% |
Share-based Compensation - Sc_8
Share-based Compensation - Schedule of equity-settled and cash-settled share-based payments (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total share-based compensation | $ 13,506 | $ 13,150 |
Total cash-settled compensation | 890 | 127 |
Stock option share-based compensation | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total share-based compensation | 13,506 | 12,863 |
RSU compensation | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total share-based compensation | 0 | 287 |
Total cash-settled compensation | (189) | 127 |
DSU compensation | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total cash-settled compensation | $ 1,079 | $ 0 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of anti-dilutive securities excluded from computation of diluted earnings per share (Details) - shares | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 647,273,137 | 141,904,749 |
Stock options | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 24,687,068 | 12,018,143 |
RSUs | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 2,033,267 | 550,832 |
DSUs | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 4,088,386 | 0 |
Acquired and reissued warrants | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 7,040,209 | 5,747,487 |
2019 June financing warrants | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 546,135 | 546,135 |
USD$25m registered direct offering warrants | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 1,871,259 | 1,871,259 |
USD$20m registered direct offering warrants | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 1,497,007 | 1,497,007 |
2020 April underwritten public offering warrants | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 11,830,075 | 11,830,075 |
2020 May underwritten public offering warrants | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 7,591,876 | 7,591,876 |
2021 August underwritten public offering warrants | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 24,540,012 | 0 |
Warrants issued under conversion of debentures | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 4,665,628 | 4,665,628 |
Joint venture issued warrants | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 0 | 2,875,000 |
Convertible debenture broker/finder warrants | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 15 | 42,491 |
Senior secured convertible note | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 0 | 92,668,816 |
Amended senior secured convertible note | ||
Earnings per share [line items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 556,882,200 | 0 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||||
Jul. 31, 2022 CAD ($) | Jul. 31, 2021 CAD ($) | Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | Jul. 31, 2020 CAD ($) | |
Disclosure of risk management strategy related to hedge accounting [line items] | |||||
Monthly equity line of credit agreement | $ 5,000 | ||||
Equity line of credit agreement | $ 180,000 | ||||
Percentage of line of credit agreement to go towards convertible note payable | 60% | ||||
Restricted funds | $ 32,224 | $ 132,246 | |||
Cash and cash equivalents | 83,238 | 67,462 | $ 184,173 | ||
Current liabilities | 335,076 | 503,638 | |||
Contractual commitments | 131,428 | ||||
Unrealized gain or loss on foreign exchange | (666) | 9,108 | |||
Amended Senior Secured Convertible Note | |||||
Disclosure of risk management strategy related to hedge accounting [line items] | |||||
Notes payable | $ 210,379 | ||||
Convertible debenture interest rate | 5% | 5% | |||
Price Risk | |||||
Disclosure of risk management strategy related to hedge accounting [line items] | |||||
Amount of increase or decrease in comprehensive loss due to 10% of increase or decrease in the fair value of these financial assets | $ 22,335 | 37,100 | |||
Credit Risk | |||||
Disclosure of risk management strategy related to hedge accounting [line items] | |||||
Restricted funds | 29,994 | ||||
Expected credit loss | 1,927 | 66 | |||
Maximum exposure to credit risk | $ 158,461 | $ 522,908 | |||
Economic Dependence Risk | |||||
Disclosure of risk management strategy related to hedge accounting [line items] | |||||
Percentage of sales recorded from Société québécoise du cannabis | 17% | 42% | |||
Percentage of sales recorded from the Ontario Cannabis Store | 30% | 20% | |||
Percentage of sales recorded from the Alberta Gaming, Liquor and Cannabis agency | 15% | 14% | |||
Percentage of trade receivable from crown corporations Societe quebecoise du cannabis | 13% | ||||
Percentage of trade receivable from the Ontario Cannabis Store | 42% | 29% | |||
Percentage of trade receivables from the Alberta Gaming, Liquor and Cannabis agency | 23% | 13% | |||
Liquidity Risk | |||||
Disclosure of risk management strategy related to hedge accounting [line items] | |||||
Cash and cash equivalents | $ 83,238 | $ 67,462 | |||
Trade receivables | 42,999 | 37,421 | |||
Current liabilities | 335,076 | 503,638 | |||
Contractual commitments | 44,147 | ||||
Foreign Currency Risk | |||||
Disclosure of risk management strategy related to hedge accounting [line items] | |||||
Cash and cash equivalents | $ 104,215 | $ 434,838 | $ 81,266 | $ 348,931 | |
Immaterial change in foreign exchange rates | 1% | ||||
Unrealized gain or loss on foreign exchange | $ 1,042 |
Financial Instruments - Schedul
Financial Instruments - Schedule of price risk exposure (Details) - Price Risk - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 |
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Financial assets | $ 504 | $ 2,492 |
Financial liabilities | (211,096) | (373,432) |
Total exposure | $ (210,592) | $ (370,940) |
Financial Instruments - Sched_2
Financial Instruments - Schedule of aging of trade receivables (Details) - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 |
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Aging of trade receivables | $ 42,999 | $ 37,421 |
Credit Risk | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Aging of trade receivables | 42,999 | 37,421 |
Credit Risk | 0-30 days | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Aging of trade receivables | 24,661 | 22,971 |
Credit Risk | 31-60 days | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Aging of trade receivables | 11,808 | 12,390 |
Credit Risk | 61-90 days | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Aging of trade receivables | 2,177 | 1,435 |
Credit Risk | Over 90 days | ||
Disclosure of risk management strategy related to hedge accounting [line items] | ||
Aging of trade receivables | $ 4,353 | $ 625 |
Financial Instruments - Sched_3
Financial Instruments - Schedule of analysis of contractual maturities for financial liabilities (Details) - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | $ 72,581 | |
Excise taxes payable | 6,421 | $ 6,591 |
Convertible debentures | 40,431 | |
Undiscounted future lease payments | 3,700 | |
Financial liabilities before senior secured convertible note | 123,133 | |
Amended senior secured convertible note | 352,798 | |
Total | 475,931 | |
2023 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 72,581 | |
Excise taxes payable | 6,421 | |
Convertible debentures | 40,431 | |
Undiscounted future lease payments | 1,026 | |
Financial liabilities before senior secured convertible note | 120,459 | |
Amended senior secured convertible note | 34,176 | |
Total | 154,635 | |
2024 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 0 | |
Excise taxes payable | 0 | |
Convertible debentures | 0 | |
Undiscounted future lease payments | 587 | |
Financial liabilities before senior secured convertible note | 587 | |
Amended senior secured convertible note | 34,176 | |
Total | 34,763 | |
2025 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 0 | |
Excise taxes payable | 0 | |
Convertible debentures | 0 | |
Undiscounted future lease payments | 587 | |
Financial liabilities before senior secured convertible note | 587 | |
Amended senior secured convertible note | 34,176 | |
Total | 34,763 | |
2026 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 0 | |
Excise taxes payable | 0 | |
Convertible debentures | 0 | |
Undiscounted future lease payments | 150 | |
Financial liabilities before senior secured convertible note | 150 | |
Amended senior secured convertible note | 250,270 | |
Total | 250,420 | |
2027 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 0 | |
Excise taxes payable | 0 | |
Convertible debentures | 0 | |
Undiscounted future lease payments | 150 | |
Financial liabilities before senior secured convertible note | 150 | |
Amended senior secured convertible note | 0 | |
Total | 150 | |
Thereafter | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 0 | |
Excise taxes payable | 0 | |
Convertible debentures | 0 | |
Undiscounted future lease payments | 1,200 | |
Financial liabilities before senior secured convertible note | 1,200 | |
Amended senior secured convertible note | 0 | |
Total | $ 1,200 |
Operating Expenses by Nature -
Operating Expenses by Nature - Schedule of operating expenses by nature (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Expenses by nature [abstract] | ||
Salaries and benefits | $ 22,628 | $ 21,116 |
General and administrative | 32,914 | 20,730 |
Professional fees | 22,837 | 11,962 |
Consulting | 6,537 | 4,379 |
Total selling, general and administrative expense | $ 84,916 | $ 58,187 |
Operating Expenses by Nature _2
Operating Expenses by Nature - Schedule of operating expenses by nature - payroll related wages and benefits (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Expenses by nature [abstract] | ||
General and administrative related wages and benefits | $ 22,628 | $ 21,116 |
Marketing and promotion related wages and benefits | 6,959 | 5,543 |
Research and development related wages and benefits | 2,034 | 2,706 |
Total operating expense related wages and benefits | 31,621 | 29,365 |
Wages and benefits capitalized to inventory | 31,041 | 14,993 |
Total wages and benefits | $ 62,662 | $ 44,358 |
Other Income and Losses - Sched
Other Income and Losses - Schedule of other income and losses (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Other Income And Losses [Abstract] | ||
Interest and financing expenses | $ (20,073) | $ (32,124) |
Interest income | 1,651 | 1,601 |
Net gain on extinguishment of debt | 20,534 | 0 |
Finance income (expense), net | 2,112 | (30,523) |
Revaluation of warrant liabilities | 44,271 | (2,283) |
Share of loss from investment in associates and joint ventures | (9,157) | (6,505) |
Fair value gain/(loss) on convertible debenture | 0 | 1,260 |
Fair value (loss)/gain on senior secured convertible note | (45,820) | 1,751 |
Amortization of day 1 loss | (86,974) | (9,229) |
Gain on sale of interest in BCI | 9,127 | 0 |
(Loss)/gain on investments | (716) | 1,994 |
Net gain on loss of control of subsidiary | 25,009 | 0 |
Foreign exchange gain/(loss) | (666) | 9,108 |
Other income | 18,118 | 4,763 |
Non-operating income (expense), net | $ (46,808) | $ 859 |
Related Party Disclosure (Narra
Related Party Disclosure (Narrative) (Details) - CAD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jan. 18, 2022 | Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure of transactions between related parties [line items] | |||
Non cash share-based compensation | $ 3,975 | $ 0 | |
Gain on sale of interest in BCI | $ 9,127 | 0 | |
Belleville Complex Inc. | |||
Disclosure of transactions between related parties [line items] | |||
Proportion of ownership interest in related party | 25% | ||
Percentage of ownership interest owned by directors | 75% | ||
Percentage of ownership in related party sold | 25% | ||
Proceeds from sale of interest in related party | $ 10,111 | ||
Description of lease transaction | The Company previously leased the facility as a 15-year anchor tenant from a related party | ||
Carrying value for interest on joint venture | 0 | ||
Carrying value of interest in related party sold | $ 984 | ||
Gain on sale of interest in BCI | 9,127 | ||
Lease and operating expenses | $ 5,436 | $ 5,369 | |
Truss Limited Partnership ("Truss LP") | |||
Disclosure of transactions between related parties [line items] | |||
Proportion of ownership interest in associate | 42.50% | 42.50% | |
Raw materials purchased | $ 912 | $ 7,624 | |
Truss Limited Partnership New Arrangement | |||
Disclosure of transactions between related parties [line items] | |||
Raw materials purchased | $ 14,308 | $ 0 |
Related Party Disclosure - Sche
Related Party Disclosure - Schedule of compensation provided to key management (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Disclosure of transactions between related parties [abstract] | ||
Salary and/or consulting fees | $ 2,520 | $ 2,321 |
Termination benefits | 10,914 | 1,008 |
Bonus compensation | 1,400 | 800 |
Stock-based compensation | 7,051 | 6,800 |
Total | $ 21,285 | $ 10,929 |
Capital Management (Narrative)
Capital Management (Narrative) (Details) - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 |
Disclosure Of Capital Management [Abstract] | |||
Shareholders' equity | $ 313,692 | $ 732,265 | $ 556,676 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Aug. 01, 2020 | |
Commitments And Contingencies [Line Items] | |||
Onerous contract provision | $ 4,763 | ||
Letter of Credit | |||
Commitments And Contingencies [Line Items] | |||
Period of letter of credit | 5 years | ||
Maximum limit under agreement | $ 250 | $ 2,581 | |
Letter of credit annual amortization expense | 50 | ||
Remaining balance of letter of credit | 150 | ||
Letter of credit reduced by amendment | $ 2,080 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of future minimum payments under contractual financial obligations (Details) $ in Thousands | Jul. 31, 2022 CAD ($) |
Commitments And Contingencies [Line Items] | |
Annual minimum payments payable | $ 131,428 |
July 31, 2023 | |
Commitments And Contingencies [Line Items] | |
Annual minimum payments payable | 44,147 |
July 31, 2024 | |
Commitments And Contingencies [Line Items] | |
Annual minimum payments payable | 24,536 |
July 31, 2025 | |
Commitments And Contingencies [Line Items] | |
Annual minimum payments payable | 26,448 |
July 31, 2026 | |
Commitments And Contingencies [Line Items] | |
Annual minimum payments payable | 23,326 |
July 31, 2027 | |
Commitments And Contingencies [Line Items] | |
Annual minimum payments payable | 11,771 |
Thereafter | |
Commitments And Contingencies [Line Items] | |
Annual minimum payments payable | $ 1,200 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of carrying value of financial instruments (Details) - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 |
Assets | |||
Cash and cash equivalents | $ 83,238 | $ 67,462 | $ 184,173 |
Restricted funds | 32,224 | 132,246 | |
Long - term investments | 504 | 2,492 | |
Liabilities | |||
Warrant liability | 717 | 5,733 | |
Convertible debt - current | 38,301 | 3,406 | |
Convertible debt - noncurrent | 0 | 33,089 | |
Amended senior secured convertible note | 223,132 | ||
Senior secured convertible note - current | 210,379 | 367,699 | |
Senior notes payable - current | 0 | 50,159 | |
Other long-term liabilities | 1,409 | 520 | |
Amortized cost of financial assets | |||
Assets | |||
Cash and cash equivalents | 83,238 | 67,462 | |
Restricted funds | 32,224 | 132,246 | |
Long - term investments | 0 | 0 | |
Amortized cost of financial assets as FVTPL | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Restricted funds | 0 | 0 | |
Long - term investments | 504 | 2,492 | |
Amortized cost of financial liabilities | |||
Liabilities | |||
Warrant liability | 0 | 0 | |
Convertible debt - current | 38,301 | 3,406 | |
Convertible debt - noncurrent | 33,089 | ||
Amended senior secured convertible note | 0 | ||
Senior secured convertible note - current | 0 | ||
Senior notes payable - current | 50,159 | ||
Other long-term liabilities | 0 | 0 | |
Amortized cost of financial liability as FVTPL | |||
Liabilities | |||
Warrant liability | 717 | 5,733 | |
Convertible debt - current | 0 | 0 | |
Convertible debt - noncurrent | 0 | ||
Amended senior secured convertible note | 223,132 | ||
Senior secured convertible note - current | 367,699 | ||
Senior notes payable - current | 0 | ||
Other long-term liabilities | $ 1,409 | $ 520 |
Non-Controlling Interest (Narra
Non-Controlling Interest (Narrative) (Details) | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Keystone Isolation Technologies Inc. ("KIT") | ||
Disclosure of subsidiaries [line items] | ||
Percentage of ownership interest | 60% | |
Proportion of ownership interests held by non-controlling interests | 40% | 40% |
ZenPharm Limited | ||
Disclosure of subsidiaries [line items] | ||
Percentage of ownership interest | 60% |
Non-Controlling Interest - Sche
Non-Controlling Interest - Schedule of change in non-controlling interests (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Non Controlling Interest [Abstract] | ||
Balance, Beginning of year | $ 1,987 | $ 3,379 |
Non-controlling interest acquired on business combination | 0 | (1,340) |
Partnership contributions | 2,308 | 81 |
Share of comprehensive loss for the period | (6,017) | (133) |
Loss of control | 1,722 | 0 |
Balance, End of year | $ 0 | $ 1,987 |
Non-Controlling Interest - Sc_2
Non-Controlling Interest - Schedule of non-controlling interest (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2022 | Jul. 31, 2021 | Jul. 31, 2020 | |
Disclosure of subsidiaries [line items] | |||
Current assets | $ 271,647 | $ 693,558 | |
Current liabilities | (335,076) | (503,638) | |
Non-controlling interests | 0 | 1,987 | $ 3,379 |
Keystone Isolation Technologies Inc. ("KIT") | |||
Disclosure of subsidiaries [line items] | |||
Current assets | 0 | 0 | |
Non-current assets | 0 | 8,651 | |
Current liabilities | 0 | 0 | |
Non-current liabilities | 0 | 0 | |
Impairment | $ (4,504) | $ 0 | |
Non-controlling interest (%) | 40% | 40% | |
Non-controlling interests | $ 0 | $ 3,460 |
Revenue from Sale of Goods (Nar
Revenue from Sale of Goods (Narrative) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Revenue [abstract] | ||
Sales returns and recoveries | $ 6,059 | $ 3,736 |
Revenue from Sale of Goods - Sc
Revenue from Sale of Goods - Schedule of gross revenue (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | $ 265,418 | $ 173,081 |
Cannabis sales excluding beverages | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | 249,049 | 157,260 |
Cannabis beverage sales | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | 16,369 | 15,821 |
Retail | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | 228,113 | 158,919 |
Retail | Cannabis sales excluding beverages | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | 211,744 | 143,098 |
Retail | Cannabis beverage sales | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | 16,369 | 15,821 |
Medical | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | 3,395 | 1,769 |
Medical | Cannabis sales excluding beverages | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | 3,395 | 1,769 |
Medical | Cannabis beverage sales | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | 0 | 0 |
Wholesale | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | 13,538 | 2,458 |
Wholesale | Cannabis sales excluding beverages | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | 13,538 | 2,458 |
Wholesale | Cannabis beverage sales | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | 0 | 0 |
International | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | 20,372 | 9,935 |
International | Cannabis sales excluding beverages | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | 20,372 | 9,935 |
International | Cannabis beverage sales | ||
Schedule Of Gross Revenue [Line Items] | ||
Revenue from sale of goods | $ 0 | $ 0 |
Segmented Information (Narrativ
Segmented Information (Narrative) (Details) | 12 Months Ended |
Jul. 31, 2022 Segment | |
Disclosure of operating segments [abstract] | |
Number of operating segment | 1 |
Operating Cash Flow Supplemen_2
Operating Cash Flow Supplement - Schedule of restructuring provision (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Items not affecting cash | ||
Depreciation of property, plant and equipment | $ 7,428 | $ 6,097 |
Depreciation of property, plant and equipment in cost of sales | 20,868 | 8,601 |
Amortization of intangible assets | 21,347 | 2,050 |
Loss on convertible debentures | 131,602 | 6,218 |
Unrealized gain on changes in fair value of biological assets | (59,665) | (51,499) |
Unrealized fair value adjustment on investments | 747 | (1,994) |
Amortization of deferred financing costs | 0 | 793 |
Interest and other income | 14,347 | 5,837 |
Accretion of convertible debenture | 5,167 | 4,075 |
Non-cash finance and transaction fees | 5,190 | 21,690 |
License depreciation and prepaid royalty expenses | 0 | 118 |
Write-off of inventory and biological assets | 14,297 | 2,182 |
Write down of inventory to net realizable value | 99,739 | 2,927 |
Realized fair value amounts on inventory sold | 43,455 | 31,767 |
Loss from investment in associate and joint ventures | 9,157 | 6,505 |
Share-based compensation | 14,607 | 14,859 |
Revaluation of financial instruments (gain)/loss | (44,271) | 2,283 |
Net gain on extinguishment of debt | (28,321) | 0 |
Impairment losses | 790,981 | 20,230 |
Loss on long lived assets and disposal of property, plant and equipment | (2,466) | 1,358 |
Net gain on loss of control of subsidiary | (25,009) | 0 |
Gain on sale of BCI | (9,127) | 0 |
Gain on exit of lease | (17,189) | (789) |
Foreign exchange gain | 7,418 | (11,648) |
Total items not affecting cash | 1,000,302 | 71,660 |
Changes in non-cash operating working capital items | ||
Trade receivables | 825 | (14,203) |
Commodity taxes recoverable and other receivables | 3,963 | 5,197 |
Prepaid expenses | 6,514 | (106) |
Lease receivable | 27 | 0 |
Inventory | (81,571) | (52,539) |
Biological assets | 57,688 | 53,678 |
Accounts payable and accrued liabilities | 10,317 | 8,848 |
Excise taxes payable | (1,951) | (444) |
Income tax recoverable | (379) | 0 |
Total non-cash operating working capital | $ (4,567) | $ 431 |
Operating Cash Flow Supplemen_3
Operating Cash Flow Supplement - Schedule of additional supplementary cash flow information (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Operating Cash Flow [Abstract] | ||
Property, plant and equipment in accounts payable | $ 1,292 | $ 1,152 |
Right-of-use asset additions | 1,993 | 17,059 |
Capitalized borrowing costs | 0 | 1,269 |
Interest paid | $ 8,306 | $ 5,618 |
Income Taxes - Schedule of comp
Income Taxes - Schedule of components of income tax expense (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Income taxes paid (refund) [abstract] | ||
Current tax for the year | $ 89 | $ 22 |
Adjustments of previous years | (80) | 0 |
Total | $ 9 | $ 22 |
Income Taxes - Schedule of defe
Income Taxes - Schedule of deferred income tax expense (recovery) (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Income taxes paid (refund) [abstract] | ||
Origination and reversal of temporary differences | $ (215,230) | $ (14,659) |
Difference between statutory tax rate and deferred tax rate | 4,843 | (249) |
Change in temporary difference for which no deferred tax assets are recorded | 171,565 | 14,489 |
Deferred income tax recovery | $ (38,822) | $ (419) |
Income Taxes - Schedule of inco
Income Taxes - Schedule of income tax rate reconciliation (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Income taxes paid (refund) [abstract] | ||
Expected tax rate | 26.50% | 26.50% |
Earnings before income taxes | $ (1,112,421) | $ (115,159) |
Expected tax benefit resulting from loss | (294,791) | (30,517) |
Adjustments for the following items: | ||
Tax rate differences | (4,843) | 652 |
Permanent differences | 96,743 | 8,696 |
Change in temporary differences for which no tax assets are recorded | 154,392 | 22,076 |
Income tax expenses | $ (38,813) | $ (397) |
Income Taxes - Schedule of reco
Income Taxes - Schedule of reconciliation of deferred tax assets and liabilities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2022 | Jul. 31, 2021 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance | $ (136) | $ 0 |
Recognized in income | 38,822 | 419 |
Business Combination | (60,853) | (134) |
Recognized in Equity/OCI | (6,825) | (421) |
Business Deconsolidation | 147 | |
Ending balance | (28,845) | (136) |
Taxable temporary differences | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance | (5,017) | 10,415 |
Recognized in income | 7,944 | (14,701) |
Business Combination | (7,001) | (310) |
Recognized in Equity/OCI | (6,825) | (421) |
Business Deconsolidation | 3,254 | |
Ending balance | (7,645) | (5,017) |
Biological assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance | (606) | (1,330) |
Recognized in income | (472) | 724 |
Business Combination | (1,974) | 0 |
Recognized in Equity/OCI | 0 | 0 |
Business Deconsolidation | 0 | |
Ending balance | (3,052) | (606) |
Inventory | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance | (10,850) | (5,088) |
Recognized in income | 3,342 | 1,514 |
Business Combination | (4,185) | (7,276) |
Recognized in Equity/OCI | 0 | 0 |
Business Deconsolidation | 10,039 | |
Ending balance | (1,654) | (10,850) |
Loss carryforward | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance | 28,693 | 0 |
Recognized in income | (5,027) | 14,028 |
Business Combination | 4,248 | 14,665 |
Recognized in Equity/OCI | 0 | 0 |
Business Deconsolidation | (22,974) | |
Ending balance | 4,940 | 28,693 |
Financing costs | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance | 0 | 0 |
Recognized in income | (337) | (2,738) |
Business Combination | 337 | 2,738 |
Recognized in Equity/OCI | 0 | 0 |
Business Deconsolidation | 0 | |
Ending balance | 0 | 0 |
Intangible assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance | (12,356) | (3,997) |
Recognized in income | 33,372 | 1,592 |
Business Combination | (52,278) | (9,951) |
Recognized in Equity/OCI | 0 | |
Business Deconsolidation | 9,828 | |
Ending balance | $ (21,434) | $ (12,356) |
Income Taxes - Schedule of dedu
Income Taxes - Schedule of deductible temporary differences and unused tax losses (Details) - CAD ($) $ in Thousands | Jul. 31, 2022 | Jul. 31, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized | $ 1,195,926 | $ 489,747 |
Deductible temporary differences | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized | 26,952 | 11,556 |
Taxable temporary differences | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized | 0 | 26,444 |
Investments | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized | 288,958 | 17,030 |
Losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized | 594,890 | 278,115 |
Research and development expenditures | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized | 3,148 | 1,817 |
Fixed Assets, intangibles and other assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized | 243,665 | 114,384 |
Financing costs | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized | $ 38,313 | $ 40,401 |
Income Taxes - Schedule of non-
Income Taxes - Schedule of non-capital losses (Details) $ in Thousands | Jul. 31, 2022 CAD ($) |
Income taxes paid (refund) [abstract] | |
2023 | $ 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 946 |
2029 | 75 |
2030 | 2,867 |
2031 | 3,018 |
2032 | 2,489 |
2033 | 820 |
2034 | 2,240 |
2035 | 10,687 |
2036 | 23,807 |
2037 | 30,477 |
2038 | 8,028 |
2039 | 71,455 |
2040 | 148,402 |
2041 | 63,097 |
2042 | 232,499 |
Indefinite | 5,637 |
Total | $ 606,544 |