Top cannabis producer Canopy Growth Corporation (TSX:WEED, NASDAQ:CGC) has officially sold its facility in Modesta, California.
In a press release on Thursday, the company stated it has now sold five facilities for proceeds of C$81 million since the beginning of April.
With headquarters in Smith Falls, Ontario, Canopy Growth is a North American cannabis company focused on delivering products through its brands, including Doja, 7ACRES, Tweed and Deep Space.
By the end of September, the company anticipates generating up to $150 million from facility divestitures.
“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,” David Klein, CEO of Canopy Growth, said in a statement.
The company explained that selling these assets before its fiscal year is to provide improved liquidity and support Canopy’s path toward profitability.
Class-action lawsuits against Canopy Growth
Canopy Growth is currently in the midst of class-action lawsuits being filed against it.
Back in May, the company said it had identified misstatements in previous financial statements regarding the sale of its BioSteel Business. Misstatements had been identified in financial statements for the year ended March 31, 2022, and interim financial statements for quarters ended June 30, 2022, Sept. 30, 2022, and Dec. 31, 2022.
The cannabis producer first acquired a 72 per cent interest in BioSteel Sports Nutrition in October 2019 for $50.7 million.
BioSteel is a sports nutrition and hydration company targeting athletes with products ranging from beverages, mixes and protein to gum, mints and hemp-derived isolates.
Shares of Canopy Growth (WEED) have dropped drastically year-to-date, declining by 81.69 per cent to $0.57 as of 3:29 .p.m. ET. Over a one-month period – particularly in the midst of class-action lawsuits being filed against the company – its share price has dropped more than 50 per cent.
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