More pain at cannabis producer Canopy Growth Corp. (TSX:WEED)
Th Smiths Falls, Ontario-based company has announced that it is shutting down one of the biggest cannabis greenhouses in Canada as the pot giant looks to cut costs amid its ongoing pursuit of profitability.
Canopy Growth is shutting down its Tweed Farms greenhouse located in Niagara-on-the-Lake, Ontario, a one million-square-foot facility. As a result of the closure, 30 staff will be permanently laid off, the company said in a statement.
News of the closure comes after Canopy reported yet another disappointing quarter that missed analyst sales and earnings expectations.
The company also withdrew its forward guidance on when it expects to become profitable, pushing its shares down to a new multi-year low of $14.60 per share.
Canopy also said it sees a further $80 million to $130 million in savings it plans to make over the next several quarters in addition to the $70 million in costs it has already achieved.
Canopy along with other large cannabis producers have closed dozens of facilities across the country after realizing that they were growing far too much legal cannabis for the Canadian consumer market to handle.
In December 2020, Canopy Growth announced it was shutting down five of its Canadian facilities in a cost-cutting move that resulted in the departure of 220 staff.
Canopy Growth says it will now focus its cannabis production at its existing facilities in Smiths Falls, Ontario and Mirabel, Quebec, as well as a hybrid greenhouse in Kincardine, Ontario.
The company said it is also looking to purchase cannabis from third-party producers to offset any impact these closures may have on its product rollout.
The Tweed Farms facility was once touted as the world's largest legal cannabis greenhouse when it was first constructed in 2014 but has since been surpassed by other producers.
