Auxly closes Nova Scotia marijuana facilities, cutting 55 jobs

Toronto-based Auxly Cannabis Group closed its marijuana cultivation facilities in Kentville and Hortonville, Nova Scotia.

The move, effective with the Monday announcement, affects approximately 55 jobs, a spokesperson confirmed to MJBizDaily via email.

The closures of the facilities come more than two months after Auxly increased its stake to 100% in Sunens Farms, a large-scale cannabis producer in Leamington, Ontario.

Auxly said the closure is part of efforts to streamline and simplify its cultivation network, reduce costs and achieve its goal of becoming profitable in the first half of this year.

“Through streamlining its cultivation footprint, the company will be able to focus efforts and resources on optimizing the output of high-quality cannabis from its newly acquired large-scale greenhouse cultivation facility,” the company said in a news release.

Sunens Farms is now called Auxly Leamington.

Robinsons Cannabis, located in Kentville, Nova Scotia, had operated an indoor cultivation facility that focused on craft production.

The facility produced flower sold under the Robinsons and Kolab Project brands.

Robinsons Outdoor Grow, located in Hortonville, Nova Scotia, consisted of more than 158 acres of land.

However, the company said it hadn’t commenced cultivation there, instead utilizing the facility for storage and processing.

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Auxly plans to sell off the Kentville and Hortonville assets and apply the proceeds to support ongoing operations.

“While we believe that taking these steps ultimately makes Auxly a more focused company that is better positioned to achieve its strategic goals, it was an extremely difficult decision because of the impact on our talented and hard-working Robinsons employees,” CEO Hugo Alves said.

“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.”

Shares of Auxly Cannabis Group are traded on the Toronto Stock Exchange as XLY.