The Company has sold facilities for proceeds
of CAD$81 million in the current
quarter
SMITHS
FALLS, ON, June 29, 2023 /CNW/ - Canopy Growth
Corporation ("Canopy Growth" or the "Company") (TSX: WEED) (Nasdaq:
CGC) announced today that it has completed the sale of its facility
in Modesto, CA.
With the completion of this transaction, Canopy Growth has now
sold five facilities for proceeds of CAD$81
million since April 1, 2023,
and anticipates generating up to a total of CAD$150
million from facility divestitures by September 30, 2023.
These divestitures are aligned to the organizational
transformation as announced during the Company's prior fiscal year
and provide improved liquidity, while also supporting the Company's
path to profitability through the corresponding operational
expenditure reductions from no longer operating these sites.
"Today's announcement reflects our continued focus on
strengthening Canopy Growth's balance sheet and demonstrates the
rapid execution of our transformation to an asset-light, North
American focused cannabis business on an accelerated path to
profitability," said David Klein,
CEO, Canopy Growth. "The proceeds from this transaction further the
achievement of our target of CAD$150
million in total proceeds from facility divestitures by the
end of September 2023, enabling us to
efficiently reduce our overall footprint and strengthen our
financial position."
About Canopy Growth
Canopy Growth is a leading North American cannabis and CPG
company dedicated to unleashing the power of cannabis to improve
lives.
Through an unwavering commitment to our consumers, Canopy Growth
delivers innovative products with a focus on premium and mainstream
cannabis brands including Doja, 7ACRES, Tweed, and Deep Space. Our
CPG portfolio features sugar-free sports hydration brand BioSteel,
targeted 24-hour skincare and wellness solutions from This Works,
gourmet wellness products by Martha Stewart CBD, and category
defining vaporizer technology made in Germany by Storz & Bickel.
Canopy Growth has also established a comprehensive ecosystem to
realize the opportunities presented by the U.S. THC market through
its rights to Acreage Holdings, Inc., a vertically integrated
multi-state cannabis operator with principal operations in densely
populated states across the Northeast, as well as Wana Brands, a leading cannabis edible brand in
North America, and Jetty Extracts,
a California-based producer of
high-quality cannabis extracts and pioneer of clean vape
technology.
Beyond our world-class products, Canopy Growth is leading the
industry forward through a commitment to social equity, responsible
use, and community reinvestment—pioneering a future where cannabis
is understood and welcomed for its potential to help achieve
greater well-being and life enhancement.
For more information visit www.canopygrowth.com.
Notice Regarding Forward-Looking Information
This news release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation. Often, but
not always, forward-looking statements and information can be
identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "estimates", "intends", "anticipates"
or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Forward-looking statements or information involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of the Company or
its subsidiaries to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements or information contained in this news
release. Examples of such statements and uncertainties include
statements with respect to the additional facility divestitures,
the proceeds to be received by the Company from such divestitures,
the timing of any additional facility divestitures, the Company's
strategy focused on profitability; and expectations for other
economic, business, and/or competitive factors.
Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking information,
including negative operating cash flow; uncertainty of additional
financing; use of proceeds; volatility in the price of the
Company's common shares; inherent uncertainty associated with
projections; expectations regarding future investment, growth
and expansion of operations; regulatory and licensing risks;
changes in general economic, business and political conditions,
including changes in the financial and stock markets and the
impacts of increased rates of inflation; legal and regulatory risks
inherent in the cannabis industry, including the global regulatory
landscape and enforcement related to cannabis; additional dilution;
political risks and risks relating to regulatory change; risks
relating to anti-money laundering laws; compliance with extensive
government regulation and the interpretation of various laws
regulations and policies; public opinion and perception of the
cannabis industry; and such other risks contained in the public
filings of the Company filed with Canadian securities regulators
and available under the Company's profile on SEDAR
at www.sedar.com and with the United States Securities
and Exchange Commission through EDGAR at www.sec.gov/edgar,
including under the heading "Risk Factors" in the Company's annual
report on Form 10-K for the year ended March 31, 2023.
In respect of the forward-looking statements and information,
the Company has provided such statements and information in
reliance on certain assumptions that they believe are reasonable at
this time. Although the Company believes that the assumptions and
factors used in preparing the forward-looking information or
forward-looking statements in this news release are reasonable,
undue reliance should not be placed on such information and no
assurance can be given that such events will occur in the disclosed
time frames or at all. Should one or more of the foregoing risks or
uncertainties materialize, or should assumptions underlying the
forward-looking information prove incorrect, actual results may
vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Although the Company
has attempted to identify important risks, uncertainties and
factors which could cause actual results to differ materially,
there may be others that cause results not to be as anticipated,
estimated or intended. The forward-looking information and
forward-looking statements included in this news release are made
as of the date of this news release and the Company does not
undertake any obligation to publicly update such forward-looking
information or forward-looking information to reflect new
information, subsequent events or otherwise unless required by
applicable securities laws.
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SOURCE Canopy Growth Corporation