Proactive Investors - Canopy Growth (TSX:WEED) Corporation said on Monday it has completed the previously announced sale of its Hershey Drive facility in Smiths Falls, Ontario, to Hershey Canada Inc, receiving about C$53 million in cash.
The Canadian cannabis firm noted that net proceeds received from the sale will be used primarily to pay down the company's senior secured credit facility.
"The closing of the Hershey Drive facility sale further demonstrates our focus and resolve to complete our transformation to a simplified, asset-light operating model while continuing to improve our liquidity position and enhance our balance sheet," Canopy Growth CEO David Klein said in a statement.
"Our ability to be nimble and brand focused has ensured that Canopy Growth is well positioned to succeed in the North American cannabis market," he added.
Since April 1, Canopy Growth has sold seven properties for total gross proceeds of about C$155 million.
The Hershey Drive facility sale follows the centralization of post-harvest manufacturing at its former beverage facility in Smiths Falls, Ontario, as well as the consolidation of all flower cultivation in Canopy Growth's purpose-built sites in Kincardine, Ontario and Kelowna, British Columbia.
Shares of Canopy Growth fell 5% to C$1 in late-day trading on Monday and have plunged 68% year to date.