(Reuters) – Pot producer Canopy Growth said on Thursday it has completed the sale of its facility in Modesto, California as a part of its divestitures to raise funding amid liquidity concerns.
The sale of the facility was the fifth such deal since April 1 and has generated C$81 million ($61.10 million), the company said.
“The proceeds from this transaction further the achievement of our target of C$150 million in total proceeds from facility divestitures by the end of September 2023,” said CEO David Klein in a statement.
Canopy Growth’s shares, which have slumped more than 80% this year, have been under added pressure since last week after the company raised ‘going concern’ doubts citing systemic regulatory issues, continued battle with the illicit marijuana market and delays in government action.
Analysts have questioned the cannabis producer’s ability to reduce cash-burn and turnaround operations. Brokerage Benchmark slashed its price target on Canopy to zero earlier this week.
($1 = 1.3258 Canadian dollars)
(Reporting by Sourasis Bose in Bengaluru; Editing by Krishna Chandra Eluri)