By Robb M. Stewart
Canopy Growth, a leading cannabis company, has finalized a deal to sell one of its facilities in Ontario to Hershey Canada for approximately 53 million Canadian dollars ($39.2 million). The sale is part of Canopy Growth’s ongoing effort to reduce costs and strengthen its financial position.
The facility, located on Hershey Drive in Smiths Falls, will be transferred to Hershey Canada. However, Canopy Growth will retain its post-harvest manufacturing facility in Smiths Falls.
This transaction marks the sale of the seventh property for Canopy Growth since April, bringing the total proceeds from these sales to around C$155 million. The funds obtained from this latest facility sale will be used to pay down a senior secured credit facility.
Canopy Growth is transitioning to an asset-light operating model, aiming to centralize core activities in purpose-built facilities while partnering with contract manufacturers for the production of edibles, beverages, and vape products.
In the three months ending June 30, Canopy Growth reported a narrowed loss of C$38.1 million, with revenue increasing slightly from C$105.9 million to C$108.7 million compared to the same period last year.