Canopy Growth (TSX: WEED) continues to shed assets as it works to improve its liquidity situation.
The latest asset to be sold consists of a facility in Modesto, California. The asset, which was acquired several years ago for industrial-scale hemp manufacturing under an agreement with the City of Modesto, was sold for an undisclosed price.
Canopy did declare however that since April 1, it has sold a total of five facilities for proceeds of C$81 million. Further facility sales are expected to result in up to $150 million in gross proceeds from asset sales by September 30 for the calendar year.
The sales are expected to reduce capital and operating expenditures as the company pushes towards achieving profitability, and are part of a transformation plan that will see 1,200 jobs eliminated,
READ: Canopy Growth To Cut 60% Of Staff As Earnings Continue To Implode
“Today’s announcement reflects our continued focus on strengthening Canopy Growth’s balance sheet and demonstrates the rapid execution of our transformation to an asset-light, North American focused cannabis business on an accelerated path to profitability,” CEO David Klein said in a statement.
The asset sale follows the company posting its fourth quarter results last week, resulting in a net loss for the three month period of $647.6 million. For the full fiscal year, the company posted losses of $3.3 billion.
Canopy Growth last traded at $0.58 on the TSX.
Information for this briefing was found via Sedar 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.
