Canopy Growth Corporation (TSX:WEED, NYSE:CGC)'s shares moved higher on Thursday after the cannabis company announced it will be selling its Hershey Drive facility, located in Smiths Falls, Ontario, to Hershey Canada for C$53 million.
Canopy Growth’s Toronto-listed shares had added 9.8% to C$0.56 shortly before noon, while its U.S.-listed shares were up 7.9% to US$0.41.
The sale is part of its strategy to move to a simplified, asset-light operating model with greater agility and less execution risk, the company noted.
Upon the sale of the Hershey Drive facility, Canopy Growth will have sold seven properties for approximately C$155 million since April 1, 2023.
“This is the latest milestone in our focused effort to reduce costs and further enhance our balance sheet," Canopy Growth CEO David Klein said in a statement.
Net proceeds from the sale will be used by the company to pay down its senior secured credit facility.
The sale comes after Canopy Growth has centralized post-harvest manufacturing at its former beverage facility in Smiths Falls, in addition to consolidating all flower cultivation at its purpose-built sites in Kincardine, Ontario, and Kelowna, British Columbia.
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