The company announced it is selling all of its African cannabis assets (located in South Africa and Lesotho) to a local business, with the deal expected to close in the coming weeks. Canopy Growth also is ending cultivation operations at its Latin American facility in Colombia and is shuttering its indoor cultivation facility in Yorktown, Saskatchewan, Canada.
In a statement, the company said it is taking these steps to slow down its cash-burn rate. As it stands, the company is expected to take a charge of up to C$800 million.
CEO David Klein, who took over the reins at Canopy Growth in January, said in a statement, “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.”
As part of this restructuring, the company also is cutting 85 jobs. Additionally, Canopy Growth is ceasing its hemp cultivation operations in Springfield, New York, citing “an abundance of hemp produced in the 2019 growing season.”
“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," Klein said in a statement.
Editor’s note: This is a developing story that will be updated.