The town of Smiths Falls, Ontario, is experiencing a fascinating turn of events as Canopy Growth, a leading cannabis producer, announced on Thursday that it would sell its primary cannabis cultivation facility, once a factory for Hershey Canada, back to the prodigal chocolatier.
This decision comes as Canopy Growth aims to streamline operations by winding down activities at the 1 Hershey Dr. facility. The property will be sold to Hershey for a price of $53 million.
Following the announcement, shares of Canopy Growth saw an increase in trading value at the market open on Thursday.
Notably, Canopy Growth previously used the old chocolate factory as its headquarters during the cannabis boom sparked by the legalization of recreational weed in Canada. As a nod to the site’s history, the company also introduced a line of cannabis-infused chocolate bars when edibles were legalized.
Hershey Canada originally constructed the factory on the street that still bears its name in 1964 and sold it in 2007. The town of Smiths Falls, which relied on job opportunities from the Hershey factory in the past, experienced a surge in employment due to Canopy Growth’s success. However, the subsequent decline in the cannabis industry led to the company announcing the cut of 800 jobs, more than a third of its workforce, earlier this year.
Despite the sale, Canopy Growth will still retain a presence in Smiths Falls, as it consolidates its post-harvest production in a separate facility located across the road from the old Hershey factory.
Jason Reiman, Hershey Canada’s chief supply chain officer, stated on Thursday that the purchase of the facility serves as a strategic investment in the growth of the company’s Canadian operations.
When contacted for further details regarding hiring and production plans at the site, Hershey Canada’s spokesperson mentioned that it was “premature” to discuss those aspects at the moment. According to Hershey Canada’s website, the company’s current headquarters are situated in Mississauga, Ontario, with additional plants in Saint-Hyacinthe and Granby, Quebec.
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