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Be the first with the news that moves the market- Canopy Growth stock (TSX:WEED) added 1.96 per cent in early trading after the C$53 million sale of its Hershey Drive facility in Smiths Falls, Ontario, to Hershey Canada
- The transaction is part of the company’s restructuring towards an asset-light operating model after sustained losses because of an oversaturated cannabis market
- Canopy Growth is a leading North American cannabis and consumer packaged goods company
- Canopy Growth stock (TSX:WEED) is up by 1.96 per cent, trading at $0.52 per share
Canopy Growth stock (TSX:WEED) added 1.96 per cent in early trading after the C$53 million sale of its Hershey Drive facility in Smiths Falls, Ontario, to Hershey Canada.
Proceeds will be primarily used to pay down the company’s senior secured credit facility.
The transaction is part of Canopy’s restructuring towards an asset-light operating model after sustained losses because of an oversaturated cannabis market. The company will retain its Smiths Falls-based post-harvest manufacturing facility.
Upon closing, Canopy will have sold seven properties for gross proceeds of $155 million since April 1, 2023.
Other recent operational changes to increase agility, improve margins and reduce execution risk include:
- Centralizing post-harvest manufacturing at the company’s former beverage facility in Smiths Falls
- Consolidating flower cultivation at purpose-built sites in Kincardine, Ontario, and Kelowna, British Columbia
- Working with contract manufacturers for edibles, beverages and vape products
“We are pleased to have reached an agreement with Hershey on this important sale. This is the latest milestone in our focused effort to reduce costs and further enhance our balance sheet,” David Klein, Canopy’s CEO, said in a statement. “Once again, we have demonstrated Canopy Growth’s ability to achieve significant organizational and operational change to position the company for future growth in the Canadian market.”
“Our intent to purchase the Hershey Drive property in Smiths Falls is another example of the strategic investments we’re making in our supply chain network and our Canadian operations to support growth,” Jason Reiman, chief supply chain officer for The Hershey Company, said in a statement.
Canopy Growth is a leading North American cannabis and consumer packaged goods company. Its brands include Doja, 7ACRES, Tweed, Deep Space, BioSteel, This Works, Martha Stewart CBD and Storz & Bickel.
Canopy Growth stock (TSX:WEED) is up by 1.96 per cent, trading at $0.52 per share as of 9:38 am ET.
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