Cannabis Weekly Round-Up: More Cuts for Canadian Market

Canadian licensed producer Canopy Growth (NASDAQ:CGC,TSX:WEED) will shut down operations in five locations across Canada, resulting in 220 job cuts.

Meanwhile, after a critical change in management pushed through by investors, a cannabis company is offering a closer look at what its next steps will be.

Keep reading to find out more cannabis highlights from the past five days.

Canopy Growth confirms new round of layoffs and cuts

On Wednesday (December 9), David Klein, CEO of Canopy Growth, said the company still expects to meet current and future cannabis product demand despite facility shutdowns.

The company confirmed that the decision to make cuts came from an ongoing review of its business done in order to reduce excess costs in its operations.

According to the firm, these cuts will affect only 17 percent of its indoor Canadian production footprint. However, they will represent a complete shutdown of its outdoor Canadian production footprint.

Here are the locations affected by these cuts:

• St. John’s, Newfoundland and Labrador
• Fredericton, New Brunswick
• Edmonton, Alberta
• Bowmanville, Ontario
• Outdoor cannabis grow operations in Saskatchewan

“These actions will be an important step towards achieving our targeted $150-$200MM of cost savings and accelerating our path to profitability,” Klein added.

Since the cuts were announced, shares of Canopy in Toronto have traded down in value. As of Friday (December 11) at 12:01 p.m. EST, shares of the company were sitting at C$34.22.

AUSA shares updates on new management

Australis Capital (AUSA) (CSE:AUSA,OTCQB:AUSAF) issued an update to its shareholders, with the company’s new management team setting the stage for the changes it plans to make. The new executives were victorious over the previous management group in a proxy vote last month.

“We have been busy these past few weeks, and have already reengaged with our portfolio companies as part of our strategic review towards optimizing value,” interim AUSA CEO Dr. Duke Fu said in a statement.

The company is trying to quickly find a new full-time CEO and CFO while the new board has started reviewing all past and present business dealings and and partners of the company.

“Our shareholders have spoken. We are thankful for their support, and in response we have immediately commenced executing on the plans that earned us their support at the Special Meeting,” said Dr. Fu.

Cannabis company news

• Inner Spirit Holdings (CSE:ISH) told investors it will have 67 stores open across Canada next week when a location near Ottawa begins operations.

• High Tide (TSXV:HITI,OTCQB:HITIF) informed the market it has submitted its application to officially list on the NASDAQ.

• Charlotte’s Web Holdings (TSX:CWEB,OTCQX:CWBHF) formed an official partnership with InterCure (TASE:INCR) in Israel to supply hemp extract wellness products. “The two companies will also explore opportunities such as clinical trials, product development and manufacturing in Israel,” the company announced.

• PharmaCielo (TSXV:PCLO,OTCQX:PCLOF) confirmed a partnership deal with US-based cannabinoid extract firm AssuredTrans to pursue improved operations and secure an added level of quality assurance.

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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.