In an apparent move to cut costs, Canadian producer Auxly Cannabis Group Inc. (TSX:XLY) (OTCQX:CBWTF) has closed two cultivation facilities in Nova Scotia.
The company announced Monday that it shuttered its Robinsons facilities in Kentville and Hortonville and will focus on simplifying its cultivation platform and achieving its goal of becoming EBITDA-positive in the first half of the year.
Around 55 employees will lose their jobs related to the closures.
While Auxly CEO Hugo Alves says the move ultimately makes the company more focused, the decision was difficult because of the impact on the Robinsons employees.
“We are grateful for all of their efforts and will do our best to help support them through this period of transition,” Alves said in a statement.
“We are diligently working to ensure that we achieve our goal of reaching adjusted EBITDA positive by the first half of 2022 and deliver stable and profitable financial performance for our stakeholders.
“Optimizing our vertically integrated platform allows us to strengthen our capital position, increase the overall efficiency of our operations and enhance our ability to continue to meet the growing demand for Auxly branded products.”
