Canopy Growth (TSX: WEED) has recorded another loss as they attempt to cut back their operations. The company has sold off its skincare and wellness brand, This Works.
The divesture will bring to the company proceeds of up to $15.9 million, which includes $4.6 million in cash and other consideration, while the remainder is to be paid via a loan note and a contingent earn-out. The assets have been sold to Inspirit Capital, which is a London-based investment firm.
“We are resolutely focused on achieving North American cannabis market leadership, and this completed sale represents a further step to enable this through the transformation of Canopy Growth into a simplified, asset-light, cannabis focused business,” commented Canopy Growth CEO David Klein.
READ: Canopy Growth Sells BioSteel Assets For $30.4 Million
This Works was acquired by Canopy back in May 2019, when it paid $73.8 million for the skincare brand in an all-cash transaction. The company at the time was described as a “global leader in natural skincare and sleep solutions.” The purchase was said to be a part of the company’s hemp and CBD strategy.
The business unit last quarter generated revenue of $7.1 million, while posting gross margins at 48%.
Canopy Growth last traded at $0.69 on the TSX.
Information for this briefing was found via Canopy Growth and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
