Canadian cannabis products maker Canopy Growth (NASDAQ:CGC) is selling its Hershey Drive facility in Smith Falls to Hershey Canada for a consideration of about C$53 million.
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The move is part of Canopy’s drive towards an asset-light operating model; the company will continue to maintain the post-harvest manufacturing facility in Smith Falls. This transaction marks the seventh property sale for Canopy, which has now realized nearly C$155 million in gross proceeds from these property sales.
Further, the move helps Canopy drive down costs and shore up its balance sheet. The company plans to use the proceeds from the sale to mainly pare down its senior secured credit facility.
Overall, the Street has a $0.56 consensus price target on Canopy Growth alongside a Moderate Sell consensus rating. After a nearly 90% price erosion over the past year, the consensus price target points to a nearly 46% potential upside in the stock.
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