WeedMD Closes Bowmanville Facility, 20 Employees Impacted

Sometimes, oncoming events are easy to foresee. Such was the case with WeedMD Inc (TSXV: WMD), whom this morning announced that the company is closing its Bowmanville facility in 2021 as it looks to cut costs and improve operational efficiencies.

Facility closures were alluded to with the announcement of the resignation of the firms CEO, Angelo Tsebelis, earlier this week. While not directly stated in the release, the resulting events were heavily alluded to with the appointment of the firms Executive Chairman as interim CEO, resulting in us stating, “Scorsis also mentioned the keywords of “optimizing the organization,” a phrase within the cannabis space that historically has resulted in staff reductions and facilities seeing their capacity reduced in an attempt to right size operations.

As per this mornings news release, the company has moved all packaging, labelling, and distribution activities to that of its Aylmer, Ontario facility as it looks to consolidate its operations. Going forward the London-area operations, which includes the Aylmer and Strathroy facilities, will be realigned as the firms core operations, as they were prior to the Starseed acquisition, as a means of maximizing the utilization of its facilities. The changes are to be completed this month. The changes are to impact approximately 20 employees.

“While our Aylmer site will focus on product distribution, processing and extraction activities; our Strathroy facility will continue to be the centre of excellence for quality cultivation, biomass production and dried flower processing. For 2021, we are establishing enterprise-wide targets as part of our focus on maximizing margins and increasing revenues.”

George Scorsis, Executive Chairman and Interim CEO

WeedMD last traded at $0.285 on the TSX Venture.


Information for this analysis was found via Sedar, and WeedMD Inc. The author has no securities related to this organization. WeedMD Inc was previously a client of CanaCom Group, the parent company of The Deep Dive. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

WeedMD Receives Health Canada Amendment For Processing Facility

WeedMD Inc (TSXV: WMD) announced this morning that the firm has received a license amendment...

Wednesday, October 16, 2019, 08:57:14 AM

WeedMD Secures Approval from Health Canada for Outdoor Cultivation

Toronto, Canada, May 31, 2019 – WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”),...

Friday, May 31, 2019, 03:19:12 PM

WeedMD Announces Management Team for CX Industries

WeedMD Inc (TSX: WMD) this morning announced that it has implemented a management team at...

Tuesday, November 26, 2019, 09:11:04 AM

Outdoor Cannabis Cultivation Has Arrived in Canada

Outdoor grow is coming to Canada in a hurry. Health Canada, the regulating body for...

Monday, June 3, 2019, 07:00:53 AM

WeedMD Posts Net Revenues Of $12.2 Million, Loss Of $9.0 Million In Q1 2020

WeedMD Inc (TSXV: WMD) filed its first quarter 2020 financial statements late last night, revealing...

Wednesday, July 15, 2020, 08:00:00 AM