June 17, 2020 - 3:56 PM
OTTAWA - Hexo Corp. says it has sold its facility in Niagara Falls, Ont., for $10.25 million to an undisclosed buyer.
The cannabis company announced in March plans to list the facility after reviewing its cultivation assets.
Hexo determined that it no longer expected to restart operations, which it halted in November 2019, due to an excess of cultivation capacity in the market, forecasted demand for cannabis products and expected market development.
The sale of the Niagara facility included land and greenhouse facilities, as well as certain equipment.
The company says it expects to use the proceeds to fund additional expansion of its Belleville, Ont., facility and for working capital and other general corporate purposes.
Hexo's shares lost 15 cents or 11.9 per cent to $1.11 in Wednesday trading on the Toronto Stock Exchange.
This report by The Canadian Press was first published June 17, 2020.
Companies in this story: (TSX:HEXO)
News from © The Canadian Press, 2020