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By Robb M. Stewart
Canopy Growth has reached a deal to sell a facility in Ontario to the Canadian arm of Hershey for roughly 53 million Canadian dollars ($39.2 million) as the cannabis company seeks to cut costs and bolster its balance sheet.
Canopy Growth said the Hershey Drive facility in Smiths Falls will be sold to Hershey Canada, though it will hold onto its Smiths Falls post-harvest manufacturing facility.
When the deal is completed, the company will have sold seven properties for about C$155 million in all since April, with proceeds from the latest facility sale set to be used to pay down a senior secured credit facility.
Canopy Growth is moving to an asset-light operating model, which it says will allow it to centralize core activities in purpose-built facilities and work with contract manufacturers for its edibles, beverages and vape products.
The Smiths Falls-based cannabis company narrowed its loss in the three months to June 30 to C$38.1 million as revenue edged up to C$108.7 million from C$105.9 million a year earlier.
Write to Robb M. Stewart at [email protected]
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