Canopy Growth stumbling

Losses of $700-800 million expected

Staff work in a marijuana grow room that can be viewed at the visitors centre at Canopy Growth's Tweed facility in Smiths Falls, Ontario on Thursday, Aug. 23, 2018. (FILE PHOTO)

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Canopy Growth, the darling of Smith’s Falls, is stumbling after warning that it will be taking losses of between $700 and $800 million, laying off 500 employees, closing two marijuana greenhouses and cancelling plans for a third.

Canopy Growth was a rare bright spot in Smith Falls after the Hershey Chocolate factory closed, then the space was taken over to grow marijuana.

Canopy Growth rode a wave of optimism that infected all companies in the Canadian marijuana market, and now joins all of them in belt tightening amid heavy financial losses.

Canopy Growth said the recreational market failed to take off as it anticipated.

It is closing greenhouses at Aldergrove and Delta, British Columbia, and cancelling plans for another at Niagara-on-the-Lake.