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Canopy Growth to sell Hershey Drive facility back to Hershey Canada

SMITHS FALLS, Ont. — Canopy Growth Corp. says it has signed a deal to sell its facility in Smiths Falls, Ont., that was once home to a Hershey chocolate factory back to the chocolate maker.

The cannabis company says Hershey Canada Inc. has agreed to pay about $53 million in cash for the property.

Canopy, which has been selling assets and working to cut costs, says net proceeds received from the sale will be used primarily to pay down the company’s senior secured credit facility.

The company announced earlier this year that it was winding down operations at the Hershey Drive facility as part of a plan to lay off 800 workers.

The sale follows the centralization of the company’s post-harvest manufacturing at its former beverage facility in Smiths Falls and the consolidation of its flower cultivation at the company’s sites in Kincardine, Ont., and Kelowna, B.C.

Canopy says once the Hershey sale is complete it will have sold seven properties for a total of $155 million since April 1.