Canadian The Valens Company is shutting down the BC-based Citizen Stash facility. Valens acquired grower Citizen Stash in 2021, following a transaction valued at CA$54.3 million.
"We made the difficult decision to shut down Citizen Stash's facility in Mission, British Columbia," reads a letter to shareholders signed by CEO Tyler Robson and President Jeff Fallows.
The production of Citizen Stash will be moved into the company's Kelowna-based facilities to centralize manufacturing.
On top of that, Robson and Fallows said that Valens is transitioning to new contract arrangements and is optimizing the contract grow network to decrease the cost of supply. "As part of this restructuring, Valens will see a one-time charge which will result in decreased operating expenses in future quarters," they point out.
Valens is also planning to monetize the Citizen Stash's facility, as well as other 'non-core assets'. "We expect to generate an additional $5 to $10 million in cash over the coming quarters which is incremental to the $20 million in annual cost efficiencies expect through 2022."
The company hasn't shared if any employees got laid off as a result of the shutting down.