On August 17, 2023, Canopy Growth Corporation, a leading cannabis company listed on TSX and Nasdaq, announced the sale of its Hershey Drive facility in Smiths Falls, Ontario, to Hershey Canada, Inc. for CAD$53 million. This move was part of Canopy Growth's strategy to transition to a simplified, asset-light operating model. The transaction, which was subject to standard closing conditions, represented a significant effort by Canopy Growth to reduce costs and enhance its balance sheet.

David Klein, CEO of Canopy Growth, emphasized that this sale was a crucial step in the company's reorganization, aimed at delivering popular products with increased agility and reduced execution risk. Jason Reiman, Chief Supply Chain Officer at The Hershey Company, viewed the acquisition as a strategic investment in Hershey's Canadian operations and supply chain network.

The completion of this deal marked Canopy Growth's sale of seven properties since April 1, 2023, totaling approximately CAD$155 million. The proceeds from the sale were primarily used to pay down Canopy Growth's senior secured credit facility.

This sale followed Canopy Growth's centralization of post-harvest manufacturing in Smiths Falls and the consolidation of flower cultivation at purpose-built sites in Kincardine, Ontario, and Kelowna, British Columbia. These changes aimed to enhance the company's product delivery, improve margins, and reduce both execution risks and the need for permanent capacity investment.