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.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

WeedMD Completes Acquisition of Starseed Holdings, Names New Board of Directors

WeedMD Inc (TSXV: WMD) has officially completed its acquisition of Starseed Holdings Inc, which was...

Monday, December 23, 2019, 08:34:31 AM

WeedMD Sees CFO Nichola Thompson Resign

Today, WeedMD Inc (TSXV: WMD) officially marked the end of an era with the announcement...

Thursday, March 26, 2020, 08:52:56 AM

WeedMD Completes Outdoor Harvest, Brings CX Industries Extraction Online

WeedMD Inc (TSXV: WMD) issued an operational update this morning, the highlight of which being...

Tuesday, November 5, 2019, 08:49:56 AM

WeedMD Launches Adult-Use Brand: Color

Today WeedMD Inc. (TSX-V:WMD) announced the launch of Color Cannabis. Color Cannabis products include a variety of...

Wednesday, June 5, 2019, 08:06:36 AM

WeedMD Launches CX Industries, A Wholly Owned Extraction Subsidiary

WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of...

Tuesday, July 23, 2019, 10:02:50 AM