More contraction…
MJ Biz reports
Struggling Canadian cannabis producer Hexo Corp. is closing its Belleville facility and transitioning its operations to other sites as part of a “strategic plan” to become cash-flow positive from operations.
Hexo said approximately 230 employees will be affected by the decision.
However, the company says The Truss Beverage Co. – the company’s venture with Molson Canada – will not be impacted by the move and will continue to operate out of the Belleville facility.
“After an extensive review of site capabilities, we have identified this operational closure and transition as an opportunity to further optimize our network,” Hexo’s acting chief operating officer, Charlie Bowman, said in a statement.
“Our decision is designed to leverage other sites with available infrastructure and capabilities to improve production outputs while significantly reducing costs across our entire network. This is a critical next step for HEXO as we continue to make strides towards becoming cash flow positive from operations.”
Hexo plans to offer career counselling and other transitional services to impacted workers.
The company has been closing facilities and laying off hundreds of people after accumulating massive losses.
Hexo has lost 1.6 billion Canadian dollars ($1.3 billion) since 2016.
Late last year, Hexo said it was shutting down three facilities and laying off staff as part of an integration plan after an acquisition spree
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