Canopy Growth Sells Skincare & Wellness Brand For $11.7M, Streamlines Focus To Cannabis
Portfolio Pulse from Jelena Martinovic
Canopy Growth Corporation (NASDAQ:CGC) has sold its This Works skincare and wellness brand to Inspirit Capital for up to £9.3 million ($11.7 million). The sale includes an upfront cash consideration, a loan note, and a contingent earn-out. This Works' leadership, staff, and IP will transfer to Inspirit Capital. The divestiture is part of Canopy Growth's strategy to focus on achieving North American cannabis market leadership by becoming a simplified, asset-light, cannabis-focused business. Canopy's shares traded lower at $0.5047 per share following the news.
December 18, 2023 | 5:45 pm
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Canopy Growth Corporation has completed the sale of its This Works brand, aligning with its strategy to focus on the cannabis market. The company's stock traded lower at $0.5047 following the announcement.
The sale of This Works is a strategic move for Canopy Growth to concentrate on the cannabis sector. The short-term negative impact on the stock price could be due to market perception of the divestiture or broader market conditions. However, the sale could strengthen the company's financial position and streamline operations, which might be viewed positively in the long term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100