Canopy Growth Corp. said Thursday it expects to record a charge of C$700 million ($496.2 million) to C$800 million, as the Canada-based cannabis company announced a number of operational changes as part of a strategic review of its business. The company said it was cutting 85 full-time positions; will cease farming operations in Springfield, NY, citing "an abundance of hemp" produced during the 2019 growing season; and will shut down its indoor facility in Yorkton, Saskatchewan. Canopy also said it has entered agreements to exit operations in South Africa and Lesotho, and will cease operations at its cultivation facility in Colombia. "When I arrived at Canopy Growth in January, I committed to conducting a strategic review in order to lower our cost structure and reduce our cash burn," said Chief Executive David Klein. "I believe the changes outlined today are an important step in our continuing efforts to focus the Company's priorities, and will result in a healthier, stronger organization that will continue to be an innovator and leader in this industry." The U.S.-listed shares, which fell 1.8% in morning trading, has lost 40.4% over the past three months, while the Cannabis ETF has dropped 43.1% and the S&P 500 has declined 16.6%. Read More...
Canopy Growth Corp. said Thursday it expects to record a charge of C$700 million ($496.2 million) to C$800 million, as the Canada-based cannabis company announced a number of operational changes as part of a strategic review of its business. The company said it was cutting 85 full-time positions; will cease farming operations in Springfield, NY, citing “an abundance of hemp” produced during the 2019 growing season; and will shut down its indoor facility in Yorkton, Saskatchewan. Canopy also said it has entered agreements to exit operations in South Africa and Lesotho, and will cease operations at its cultivation facility in Colombia. “When I arrived at Canopy Growth in January, I committed to conducting a strategic review in order to lower our cost structure and reduce our cash burn,” said Chief Executive David Klein. “I believe the changes outlined today are an important step in our continuing efforts to focus the Company’s priorities, and will result in a healthier, stronger organization that will continue to be an innovator and leader in this industry.” The U.S.-listed shares, which fell 1.8% in morning trading, has lost 40.4% over the past three months, while the Cannabis ETF has dropped 43.1% and the S&P 500 has declined 16.6%.
Read More
