Canopy Growth Sells Off Five Facilities In Q1 2023
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.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
