Seems Canopy has got more WRITE OFF coming to quarterly's selling ( 7 properties ) for a mere 155 milion .. What was the amounts when bought and exactly how much coin was forked out on improvements ?
The company CAN NOT generate earnings to pay off it's debt and resorts once again selling off assets at a DISCOUNT to help with their balance sheet ... It goes to show the company is sooooooooo far in financial troubles it is a skeleton ( shell ) to stay alive !!!
Again Klein shows exactly how financial distressed Canopy is in and is willing to play the taking of money from one pocket to replace to the other pocket to try to show stabilization.
Facility will be sold to Hershey Canada, Inc. for approximately CAD$53 million
Canopy Growth continues to execute on transformation to simplified, asset-light operating model
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.
"We are pleased to have reached an agreement with Hershey on this important sale. This is the latest milestone in our focused effort to reduce costs and further enhance our balance sheet," said David Klein, Chief Executive Officer of Canopy Growth. "Each of the steps we have taken as part of our transformation to a simplified, asset-light operating model supports our ability to deliver in-demand products from brands our customers love, with greater agility and less execution risk. Once again, we have demonstrated Canopy Growth's ability to achieve significant organizational and operational change to position the Company for future growth in the Canadian market."
"Our intent to purchase the Hershey Drive property in Smiths Falls is another example of the strategic investments we're making in our supply chain network and our Canadian operations to support growth," said Jason Reiman, Chief Supply Chain Officer, The Hershey Company.
Upon the completion of the Transaction, Canopy Growth will have sold a total of seven properties for an aggregate gross amount of approximately CAD$155 million since April 1, 2023. Net proceeds received from the sale of the Facility will be used primarily to pay down the Company's senior secured credit facility.
The sale of the Facility follows the centralization of post-harvest manufacturing at the Company's former beverage facility in Smiths Falls, as well as the consolidation of all flower cultivation in the Company's purpose-built sites in Kincardine, Ontario, and Kelowna, British Columbia.
By centralizing the Company's core activities in purpose-built facilities and working with contract manufacturers for edibles, beverages, and vape products, Canopy Growth has optimized its capability to deliver winning products with greater agility and at improved margins, while reducing execution risks and investment in permanent capacity.