Canopy Growth Finalizes $39M Hershey Drive Facility Sale

Canadian cannabis giant Canopy Growth Corporation WEED CGC completed the sale of its Hershey Drive facility in Smiths Falls, Ontario, in connection with the previously announced agreement with Hershey Canada, Inc. for cash consideration of approximately CA$53 million ($39 million).

As part of its transformation to a simplified, asset-light operating model, Canopy Growth sold a total of seven properties for aggregate gross proceeds of approximately CA$155 million since April 1, 2023. It is anticipated that net proceeds received from the sale of the facility will be used primarily to pay down the company's senior secured credit facility.

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"The closing of the Hershey Drive facility sale further demonstrates our focus and resolve to complete our transformation to a simplified, asset-light operating model while continuing to improve our liquidity position and enhance our balance sheet," stated David Klein, CEO of Canopy Growth. "Our ability to be nimble and brand-focused has ensured that Canopy Growth is well positioned to succeed in the North American cannabis market."

The sale of the facility follows the centralization of post-harvest manufacturing at the company's former beverage facility in Smiths Falls, Ontario, as well as the consolidation of all flower cultivation in the company's purpose-built sites in Kincardine, Ontario and Kelowna, British Columbia.

Price Action
Canopy shares traded 0.15% at $78 cents per share during Monday’s pre-market session.

Photo: Courtesy of CRYSTALWEED cannabis via Unsplash