Canopy Growth selling Smiths Falls facility back to Hershey to generate about $39 million to pay down debt

The company’s chief executive, David Klein, said the move to shed the cannabis facility was part of the company’s “asset-light” effort to contain costs.

Hershey Co.’s HSY, -0.67% chief supply-chain officer, Jason Reiman, said the purchase “is another example of the strategic investments we’re making in our supply-chain network … to support growth.”

The site was originally Hershey’s first plant outside the U.S. and served as its Canadian headquarters. Hershey’s stock rose fractionally in premarket trades.

Canopy Growth will still own its post-harvest manufacturing facility in Smiths Falls.

All told, Canopy Growth has now sold seven properties for total proceeds of about C$155 million since April. The proceeds of the transactions will be used to pay down Canopy Growth’s senior debt.

Canopy Growth’s stock is down about 83% in 2023, compared with a 34% decline by the AXS Cannabis exchange-traded fund THCX.

Also read: Canopy Growth beats analyst targets as its ‘asset-light’ strategy bears fruit, but Curaleaf’s miss weighs on pot stocks