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.
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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.
