Pot Giant To Sell Its Facility Back To Hershey Canada For CA$53M, All Part Of Its 'Asset-Light' Strategy
Portfolio Pulse from Nina Zdinjak
Canopy Growth Corporation (NASDAQ:CGC) has agreed to sell its Hershey Drive facility in Smiths Falls, Ontario to Hershey Canada, Inc. for CA$53 million. This is part of Canopy's strategy to transition to an asset-light operating model. The company's Q2 earnings report showed sales of CA$109 million, beating the analyst consensus estimate of CA$67.98 million. Canopy has also reduced its debt by over $1 billion. The company's shares were trading 0.313% higher at $0.3851 per share.
August 17, 2023 | 1:54 pm
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Canopy Growth's sale of its Hershey Drive facility and strong Q2 earnings could positively impact its stock.
The sale of the Hershey Drive facility is part of Canopy Growth's strategy to transition to an asset-light operating model, which could reduce costs and enhance the company's balance sheet. Additionally, the company's Q2 earnings beat analyst estimates and it has reduced its debt significantly, which could make the stock more attractive to investors.
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