Canopy Growth to shut down Yorkton facility, exit South Africa operations

(Reuters) - Pot producer Canopy Growth Corp <WEED.TO> said on Thursday it plans to shut down its Canadian indoor facility in Yorkton, Saskatchewan, and also cut about 85 full-time positions.

Canopy will also exit its operations in South Africa and Lesotho, as a part of the ongoing strategic review of its businesses, the company said.

Among other changes, the Ontario-based company said it will cease operations at its cultivation facility in Colombia, and will source the raw materials from local suppliers.

Canopy will also halt farming in Springfield, New York, citing an abundance of hemp produced in the growing season last year.

Canada legalized recreational cannabis in October 2018 but profits have proven elusive for most marijuana companies as fewer-than-expected retail stores, higher prices than on the black market and slow overseas growth resulted in oversupply.

Earlier in March, Canopy said it plans to close two of its greenhouses in Aldergrove and Delta, British Columbia, cutting about 500 positions.

(Reporting by Shradha Singh in Bengaluru; Editing by Shailesh Kuber)