Canopy Growth Corporation (NASDAQ:CGC) shares are trading higher Thursday. The company announced an agreement to sell its Hershey Drive facility in Smiths Falls, Ontario.
What To Know:
As part of the company’s transformation to an asset-light operating model, Canopy will sell the facility to Hershey Canada, Inc. for approximately C$53 million in cash.
“We are pleased to have reached an agreement with Hershey on this important sale. This is the latest milestone in our focused effort to reduce costs and further enhance our balance sheet,” said David Klein, CEO of Canopy Growth. “Each of the steps we have taken as part of our transformation to a simplified, asset-light operating model supports our ability to deliver in-demand products from brands our customers love, with greater agility and less execution risk.”
On Wednesday, Germany’s federal cabinet approved a recreational marijuana legalization bill and sent it to the legislature for consideration. If passed, the bill would allow adults to posses up to 25 grams of marijuana, the cultivation of up to three plants and the purchase of marijuana at clubs.
Last Wednesday, Canopy Growth reported its first-quarter financial results with quarterly sales of C$109.00 million, beating the consensus estimate of C$67.98 million.
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CGC Price Action: According to Benzinga Pro, shares of CGC are up by 8.1% at 42 cents at the time of publication.
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