Marijuana producer Canopy Growth announced this week that it is stopping cannabis cultivation in several locations in order to “improve efficiencies” in its global operations.
The Ontario-based company also said it is eliminating 85 full-time positions.
Canopy announced the following changes to its operations:
Africa: Canopy Growth plans to exit its operations in South Africa and Lesotho, targeting a transfer of ownership of all of its African operations to a local business.
Canada: Canopy Growth will shut down its indoor facility in Yorkton, Saskatchewan, to further align production in Canada with market conditions. The Company is confident its production capacity in Canada will meet consumer demand into the future.
Latin America: Canopy Growth will cease operations at its cultivation facility in Colombia, moving to an asset-light model that leverages local suppliers for raw materials and Procaps for formulation and encapsulation activities as outlined in the previously announced agreement between the two companies. These activities will support the position of Colombia as the Company’s LATAM production hub and the ongoing development of its cannabis industry.
United States: Canopy Growth will cease its farming operations in Springfield, New York, due to an abundance of hemp produced in the 2019 growing season. The Company will continue using this supply to produce hemp-derived CBD products for the US market.
“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 David Klein, CEO, Canopy Growth.
“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. I want to sincerely thank the members of the teams affected by these decisions for their contributions in helping build Canopy Growth.”