It appears that production has come to a screaming halt at Ravenquest BioMed (CSE: RQB)’s Markham, Ontario facility. The Bloomera facility, acquired by Ravenquest in 2018 in exchange for $15.0 million in cash as well as 10 million common shares, appears to be all but abandoned, going as far as having chain and padlocks wrapped around the facility’s gates.
The cannabis sector has been hit hard as of late, with mass layoffs occurring as capital runs dry and cannabis pricing hits rock bottom. Ravenquest has been no exception to this rule, with the company announcing last month that layoffs would be occurring without getting into specifics. At the time, the company had stated that they had, “made significant reductions in staffing ranging from onsite workers to corporate office employees.”
It appears however that this significant reduction in staffing may have consisted of the entirety of the Bloomera facility based on some footwork conducted this week. The address of the facility, 3475-14th Ave in Markham, Ontario, can be seen in a number of the photos for confirmation of the correct address.
What our look around has found is that all gates at the facility have been padlocked shut, while snow cover in the parking lot and access paths demonstrates that production has likely been halted at the facility for some time. Discussions with neighbouring businesses have indicated that while the smell of cannabis used to permeate from the building, cannabis has not been smelt for “some time” and that they don’t know when the last time they saw people on site. A notice has also been placed on the front doors of the facility, however we were unable to discern what, exactly, it stated.
In a second update last month, Ravenquest identified that they “will continue to grow cannabis on a contract production basis for Canada and internationally. Cannabis production will ramp up according to demand and contracts.” This update may have been their quiet admittance that they had in fact ceased certain production in its entirety. Ravenquest also identified at the time that they would be transforming their focus to becoming “a technology company that grows cannabis using our technologies.”
Originally purchased in March 2018, Ravenquest paid $15.0 million in cash for the facility, as well as 10.4 million common shares of the company. At the time, the shares were valued at approximately $1.30 each, giving Bloomera an effective valuation of $28.52 million.
Production at the firms Alberta Green Biotech subsidiary located in Edmonton, Alberta, appears to be ongoing at this time.
Ravenquest BioMed last traded at $0.035 on the CSE.
Information for this briefing was found via Sedar and RavenQuest Biomed. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
