"Lack of profitability"

Canadian adult-use cannabis producer sells business

Another Canadian-based cannabis producer is getting out of the legal cannabis industry.

Neptune Wellness Solutions Inc. said in a statement on Wednesday, the 8th of June, that it plans to divest its cannabis production facility and the two brands that it owns, a move that should result in laying off half of the company’s workforce. The company cited the need to improve its pathway toward profitability and reduce costs as reasons behind its decision to divest its cannabis assets. 

Neptune is the latest company to withdraw from the Canadian adult-use cannabis market following similar moves from other smaller players such as FSD Pharma Inc. and Harvest One Cannabis Inc., given the profitability challenges in the industry amidst steep competition and an onerous taxation regime.

Neptune said it has retained Stifel GMP to help sell its Sherbrooke, Que.-based production facility – which is valued at $21 million - as well as its Mood Ring and PanHash brands.

To read the complete article, go to www.bnnbloomberg.ca

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