Chicago-based cannabis multistate operator PharmaCann is closing another cultivation operation, according to a federally mandated layoff notice.
Sixty workers will lose their jobs when PharmaCann’s Olyphant, Pennsylvania cultivation and manufacturing site closes on May 20, according to a March 20 Worker Adjustment and Retraining Notifications (WARN) notice.
It’s the third major closure in recent months and the second in quick succession. Another 132 workers will be unemployed when PharmaCann’s Colorado cultivation facility closes.
The company also shut down an Illinois cultivation center in November.
PharmaCann representatives could not be reached for comment.
Is PharmaCann shutting down entirely?
The closures point to severe financial difficulties for the cannabis operator, which obtained a permit in medical cannabis-only Pennsylvania in 2018.
Over the past year, PharmaCann has missed lease payments on its cultivation sites and started offloading its assets.
The lease payment on its Pennsylvania facility was $260,000 per month, according to a contract filed as part of a lawsuit.
In December, the company agreed to sell its 17 Colorado retail stores, along with its inventory and intellectual property to Minneapolis-based Vireo Growth for $49 million in stock.
Vireo did not purchase the cultivation facilities, signaling a broader industry shift where retailers find it cheaper to buy wholesale flower on the open market rather than grow it themselves.
Founded in 2014, PharmaCann built a reputation as one of the largest privately held, vertically integrated cannabis companies in the U.S.
The company entered the Colorado market in 2022 through an all-stock acquisition of LivWell Enlightened Health.
However, cannabis business valuations have dropped significantly since 2022.
The rapid transition from aggressive expansion to mass layoffs and facility closures illustrates the harsh reality operators face as they navigate a challenging economy and oversupplied market.
