sale of 1 Hershey Dr.Could they have come out ahead on the deal ?
Canopy Growth Triples Tweed's Production Potential by Acquiring 1 Hershey Drive
SMITHS FALLS, ON, Jan. 16, 2017 /CNW/ - Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: CGC) has closed the acquisition of the property at 1 Hershey Drive that currently houses Canopy Growth's headquarters and the Tweed Inc. (Tweed) production facilities.
"Increasing the scale of our cannabis production capacity is vitally important to our operations," said Bruce Linton, Chairman and CEO of Canopy Growth. "Even as a diversified producer using greenhouse growing and indoor growing facilities, we know there will be a need for commercial processing space that can be used to convert cannabis and cannabinoids into higher margin products like edibles, as well as complimentary products such as vape pens, or sophisticated medical delivery options that may be allowed under future legal frameworks. Almost tripling the footprint of our headquarters means more potential for our business, for the economy of Smiths Falls, and for Tweed's customers."
The entire 472,000 sq. ft. footprint could almost triple current production and processing capacity, making it by far the largest indoor cannabis production facility in Canada and likely the world. The 42-acre site could also house hundreds of thousands of square feet of additional production and processing space, either indoors or in greenhouse growing platforms.
Tweed has already transformed 168,000 sq. ft. of licensed space into Canada's most innovative cannabis production space. Twelve of 39 potential growing rooms are operational with another 12 multi-level growing rooms under construction and nearing completion. An R&D area has been used to drive innovation with some of Canada's leading researchers and universities. Oil extraction capabilities, a separate Dealer's Licence area, an in-house Quality Assurance lab, and the industry's only seed breeding area have all been added and brought online in the last three years.
The building, property and chattels were acquired for $6.6 million, of which $923,980 was settled with the issuance of 94,397 common shares of Canopy Growth, based on a 5-day VWAP of $9.7882 ending the day before closing. The remainder was paid in cash on closing. As a part owner of the facility prior to the transaction, Bruce Linton received 70,800 of the 94,397 shares issued. These shares are subject to a 4-month lockup.
SMITHS FALLS, ON, Aug. 17, 2023 /CNW/ - Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (Nasdaq: CGC) announced today that it has entered into an agreement (the "Agreement") to sell its Hershey Drive facility (the "Facility") in Smiths Falls, Ontario, as part of the Company's transformation to a simplified, asset-light operating model. Canopy Growth will retain its Smiths Falls-based post-harvest manufacturing facility.
Pursuant to the terms of the Agreement, the Facility will be sold to Hershey Canada, Inc. ("Hershey") for cash consideration of approximately CAD$53 million (the "Transaction"). The completion of the Transaction is subject to customary closing conditions.
$6.6 million is far less than $53 million.