Chicago-based PharmaCann Inc., the country's largest privately held cannabis company, informed the state on Friday that it will shut down its Denver grow facility, permanently eliminating 132 jobs. The facility, 5141 N. National Western Drive, is one of the largest in the state. Its closure highlights the financial squeeze that the cannabis industry is facing in Colorado.
"The entire facility will close on May 20. The action is expected to be permanent. The employee separations because of this action will occur on May 20," said Nathan Fete, the company's chief manufacturing operations officer, in a Worker Adjustment and Retraining Notification letter sent to the Colorado Department of Labor and Employment.
PharmaCann entered Colorado in February 2022 when it completed its all-stock acquisition of LivWell Enlightened Health. It also acquired The Clinic, a boutique retailer, later that year.
In hindsight, it now appears PharmaCann bought at the top of the market and is paying the price for it and is pulling out of Colorado. The company has been missing lease payments, according to a settlement reached with its largest landlord.
In December, PharmaCann reached an agreement to sell its 17 LivWell dispensaries, as well as intellectual property, contracts and inventory to Minneapolis-based Vireo Growth for $49 million in stock.
Read more at The Denver Post
