Canopy Growth Collects $53 Million From Sale Of Hershey Drive Facility
Canopy Growth (TSX: WEED) has completed the sale of its flagship location in Smith Falls, Ontario, in an effort to bolster its cash position.
The company has sold the facility back to Hershey Canada in exchange for C$53 million in cash as it transitions to an asset-light operating model. The strategy has resulted in the sale of seven properties now since April 1, resulting in proceeds of $155 million in total as it works to pay down its senior secured credit facility.
Following the sale of the facility, post-harvest manufacturing has been centralized to the firms former beverage facility in Smith Falls, while all flower cultivation now occurs in Kincardine, Ontario, and Kelowna, BC.
The sale was originally announced back in August.
The sale is expected to bolster the company’s cash position as it heads into the fourth quarter, which also recently got a boost from a financing of just $25 million in September, which came at a 19% discount to the trading price at the time of announcement.
It also follows the decision by the company however to place its BioSteel Sports Division into bankruptcy last month.
Canopy Growth last traded at $1.05 on the TSX.
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