Canopy Growth Corp.
CGC,
WEED,
said Wednesday it is ceasing operations at four of its Canadian sites and ending outdoor cannabis grow in Saskatchewan, in a move that will impact about 220 employees. “These actions will be an important step towards achieving our targeted $150-$200MM of cost savings and accelerating our path to profitability,” Chief Executive David Klein said in a statement. “We are confident that our remaining sites will be able to produce the quantity and quality of cannabis required to meet current and future demand.” The sites to be closed are St. John’s, Newfoundland and Labrador; Fredericton, New Brunswick; Edmonton, Alberta; and Bowmanville, Ontario. The company is expecting to book pretax charges of $350 million to $400 million in the third and fourth quarters of fiscal 2021 to cover the costs of the moves. The sites are equal to about 17% of the company’s indoor Canadian footprint and all of its outdoor footprint. U.S.-listed shares were down 0.7% but have gained 37% in the year to date, while the Cannabis ETF
THCX,
has gained 5% and the S&P 500
SPX,
has gained 14%.
Original Author Link click here to read complete story..
