Canopy Growth Corp. has announced that it’s selling its 1 Hershey Drive in Smiths Falls, where the old Hershey chocolate factory used to be, back to Hershey Canada Inc.
Hershey Canada Inc. has agreed to pay around $53 million in cash for the property. Canopy Growth Corp., a cannabis company, is in the process of selling off assets and reducing costs. They plan to use the money received from this sale mainly to pay off their senior secured credit facility.
It’s not known what Hershey’s intentions with the renovated site are at this point.
Earlier this year, Canopy Growth Corp. revealed its intention to close down operations at the Hershey Drive facility, resulting in the layoff of 800 workers. This sale comes after Canopy centralized its post-harvest manufacturing at its former beverage facility in Smiths Falls. Additionally, the company consolidated its flower cultivation at its locations in Kincardine, Ontario, and Kelowna, British Columbia.
This sale marks the seventh property that Canopy has sold since April 1, amounting to a total of $155 million in sales.
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