Despite moving into the number two spot for Canadian cannabis market share, it appears Auxly Cannabis (TSX: XLY) is doing all that it can to one day achieve some level of profitability. The firm last night announced that it has shuttered two facilities in Nova Scotia as a result.
The facilities shuttered were located in Kentville and Hortonville, where the firm operated its Robinsons cultivation facilities. The closures are said to be a result of “efforts on streamlining and simplifying its cultivation platform.”
The closures are not expected to have an impact on the firms cultivation and processing abilities, while also reducing operating costs. The closures follow the company acquiring complete ownership in facilities in Leamington, Ontario, which were previously a joint venture known as Sunens Farms. The 1.1 million square foot facility is expected to enable the company to scale its operations while reducing costs.
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The firm expects to divest the now non-core assets in Nova Scotia. Closing the facilities is expected to assist in driving the company to adjusted EBITDA positive operations within the first half of 2022.
Auxly Cannabis last traded at $0.16 on the TSX.
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