Canopy Growth Corporation has completed the sale of its Hershey Drive facility in Smiths Falls, Ontario, in connection with the previously announced agreement with Hershey Canada, Inc. for cash consideration of approximately CAD$53 million.
As part of its transformation to a simplified, asset-light operating model, Canopy Growth has sold a total of seven properties for aggregate gross proceeds of approximately CAD$155 million since April 1, 2023. It is anticipated that net proceeds received from the sale of the Facility will be used primarily to pay down the Company’s senior secured credit facility.
“The closing of the Hershey Drive facility sale further demonstrates our focus and resolve to complete our transformation to a simplified, asset-light operating model while continuing to improve our liquidity position and enhance our balance sheet,” said David Klein, Chief Executive Officer of Canopy Growth. “Our ability to be nimble and brand focused has ensured that Canopy Growth is well positioned to succeed in the North American cannabis market.”
The sale of the Facility follows the centralization of post-harvest manufacturing at the Company’s former beverage facility in Smiths Falls, Ontario, as well as the consolidation of all flower cultivation in the Company’s purpose-built sites in Kincardine, Ontario and Kelowna, British Columbia.
About Canopy Growth
Canopy Growth is a leading North American cannabis and consumer packaged goods (“CPG”) company dedicated to unleashing the power of cannabis to improve lives. Through an unwavering commitment to our consumers, Canopy Growth delivers innovative products with a focus on premium and mainstream cannabis brands including Doja, 7ACRES, Tweed, and Deep Space. Canopy Growth’s CPG portfolio features targeted 24-hour skincare and wellness solutions from This Works, gourmet wellness products by Martha Stewart CBD, and category defining vaporizer technology made in Germany by Storz & Bickel. For more information visit www.canopygrowth.com
