Marijuana producer Canopy Growth cuts 500 jobs, shuts down facilities

Canopy Growth Corp. said late Wednesday that it was shutting down two of its cannabis-production facilities in British Columbia, and eliminating roughly 500 related jobs. Canopy also said that it no longer planned to begin production in a third facility in Ontario. U.S.-traded shares of Canopy fell more than 1.4% in the extended session. The company said that it expects to record a pre-tax charge of C$700 million to C$800 million related to Wednesday’s announcement and additional changes to the company. The British Columbia greenhouses account for three million square feet and began operating in February 2018. Canopy said that its outdoor production now offers a cheaper way to grow marijuana than greenhouses and blamed the recreational market’s “slower than anticipated development” for creating “working capital and profitability challenges across the industry.” Canopy Growth stock closed up 2.4% to $17.75, as the S&P 500 index gained 4.2%. The Cannabis ETF gained 4.9% in Wednesday trading.

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