Troubled Canadian cannabis producer Hexo Corp. (HEXO) has announced that it is closing its Belleville, Ontario facility this summer and eliminating 230 employees as it cuts costs.
The Gatineau, Quebec-based company had continued to lease the Ontario facility after selling its 25% interest in the Belleville Complex this past January for $10 million.
Hexo says the Truss Beverage Co. — a joint venture with Molson Coors (TAP) — are not impacted by this change and will continue to operate out of the Belleville facility.
Hexo said the Belleville closure is designed to reduce costs by streamlining operations and capitalizing on production efficiencies. All manufacturing machinery and equipment located at the facility will be transferred to other sites by the end of July, the company said.
Hexo has been dealing with several problems over the past six months. The company’s most recent earnings showed a net loss of nearly $700 million. The company’s board of directors has been overhauled in recent months and its stock has been threatened with delisting by the Nasdaq exchange for failing to meet minimum listing requirements.
Hexo stock has fallen 74% in the past six months and now trades at $0.44 a share. The company needs to raise its share price above $1 to remain listed on the Nasdaq exchange.
