Canopy Growth Exits Canadian Cannabis Retail Business

Canadian cannabis company Canopy Growth Corp has abandoned its brick-and-mortar cannabis retail operations in Canada, selling 28 company-owned stores under its Tweed and Tokyo Smoke retail brands, closing five others and terminating franchise license agreements. According to a press release, Canopy's exit from brick-and-mortar retail "reinforces the company's focus" on achieving "profitability as a premium brand-focused cannabis and consumer products (CPG) company. Canopy owns 23 retail stores in Saskatchewan, Manitoba and Newfoundland and Labrador, which will be purchased by Canopy's retail partner OEG Retail Cannabis (OEGRC), and five Canopy-owned stores in Alberta will be acquired and rebranded by Calgary-based cannabis retail company Four20. press release, Canopy said the cost savings from the retail divestiture will allow it to meet the expected cost reductions the company announced in April when it cut 8 percent of its workforce.

Information source: mjbizdaily.com