A cannabis company will sell the building on Hershey Drive for $53 million
Canopy Growth Corp. said Thursday that it will close its headquarters in Smiths Falls, Ont., and sell the building back to Hershey Canada Inc., which had owned it before.
Canopy Growth said in a statement that it has reached an agreement to sell the facility back to the chocolate maker for about $53 million.
Canopy Growth CEO David Klein said in a statement that the sale of the facility was part of a “focused effort to reduce costs and further improve our balance sheet.”
Last month, the company made deals with its lenders to pay off $437 million worth of debt over the next six months.
Since April 1, Canopy Growth has sold seven properties. The one in Smiths Falls will be the eighth. The properties being sold will bring in a total of $155 million.
Canopy Growth announced earlier this year that it would lay off 800 workers and combine some of its cultivation operations in order to save money.
Hard times for the legal marijuana busines
In 2017, Canopy Growth bought the closed Hershey chocolate factory in Smiths Falls. At the time, the building at 1 Hershey Dr. was Canada’s largest indoor facility for making cannabis.
The building has been Canopy Growth’s main place for making flower and edibles, and it has also been used as an office.
The company will now do post-production flower work at 99 Lorne St., which is across the street from 1 Hershey Dr. and already has a regional distribution center and a bottling facility for cannabis beverages.
This change is happening because the illegal cannabis market in Canada is still doing well and giving the legal market a lot of competition.
The mayor of Smiths Falls, Shawn Pankow, will talk about the sale on Thursday at 11 a.m.