Marijuana Business Daily

Canopy selling cannabis facility back to chocolatier Hershey for CA$53 million

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A Canopy Growth Corp. flagship facility that was once emblematic of the prospective wealth and new beginnings of the country’s legal cannabis industry is being sold back to its original owner, chocolate maker Hershey Canada.

The sale of the Smith Falls, Ontario, facility – for 53 million Canadian dollars ($39 million) – is part of Canopy’s drive to shed costs and transition to an “asset-light” model, the struggling company said in a news release.

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But it’s also symbolic of Canada’s faltering marijuana industry, which has sustained more than $20 billion in losses.

Canopy – which has yet to record a profit – has lost almost CA$6 billion since becoming the first cannabis company to go public in 2014, when it was known as Tweed Marijuana.

Back in February, Canopy said it planned to shutter the Smith Falls facility and lay off 800 workers to save money.

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