Constellation Brands Inc (STZ)

[FUNMAN]

Canopy Growth confirms closures, taking $700M-plus charges

Mar. 4, 2020 5:33 PM ET|About: Canopy Growth Corporation (CGC)|By: Jason Aycock, SA News Editor

I wonder how Constellation Brands feels about this? - FUNMAN

Canopy Growth (NYSE:CGC) has confirmed the shutdown of two greenhouses, a move it says it's making to align capacity with projected demand.

Shares are down 1.1% in postmarket NYSE trading.

Canopy will close the Aldergrove and Delta facilities as reported, a move that will result in eliminating 500 jobs. It's also shelving a plan to build a third greenhouse in Niagara-on-the-Lake, Ontario.

It will take estimated pretax charges of $700M-$800M in Q4 (the current quarter ending March 31), reflecting the closures as well as other changes from its organizational and strategic review.