Canopy Growth (TSX: WEED) has sold off an iconic facility in its efforts to drive towards an asset-light operating model. The company has sold what was once its flagship facility, the Hershey Drive facility, located in Smith Falls, Ontario.
The facility has been sold to that of Hershey Canada, for a total cash figure of C$53 million. Proceeds from the sale of the facility are to be used to pay down Canopy’s senior secured credit facility.
The company indicated that it will retain its Smith Falls-based post-harvest manufacturing facility, where the company has centralized its operations at what was once a former beverage facility.
The company year to date has sold a total of seven properties, for proceeds of $155 million.
“Each of the steps we have taken as part of our transformation to a simplified, asset-light operating model supports our ability to deliver in-demand products from brands our customers love, with greater agility and less execution risk. 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,” commented CEO David Klein on the sale.
Hershey Canada meanwhile alluded to placing the facility back into operation for its own purposes, stating that the purchase is a strategic investment into its supply to support growth.
Canopy Growth last traded at $0.51 on the TSX.
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