Canadian cannabis giant Canopy Growth is selling its flagship facility in Smith Falls, Ontario, back to Hershey Canada for $39 million ($53 CAD). The Smith Falls facility is the seventh property Canopy has sold in an effort to shed costs and transition to “a simplified, asset-light operating model,” Canopy CEO David Klein said in a press release.
“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,” Klein said. “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.”
After the Smith Falls sale is complete, Canopy will have brought in a total gross amount of $114.4 million ($155 million CAD) from the properties it has sold since April 1, 2023. The majority of the proceeds are being used to pay down the company’s senior secured credit facility.
An affiliate of Canopy bought the facility in 2013, but the company has lost a total of $4.4 billion since going public in 2014. Canopy originally announced its plans to shutter the facility and layoff nearly 800 workers as a cost cutting measure in February 2023. The company is moving its headquarter office across the street from the Smith Falls facility and plans to retain and centralize its post-harvest operations in its former beverage facility which is also in Smith Falls.
— Patrick Wagner