Hexo Corp. has accomplished the sale of the Niagara, Ontario-based cultivation facility it acquired as half of a 263 million Canadian dollar ($193 million) deal to purchase Newstrike Brands Ltd. final 12 months.
The sale of the greenhouse fetched roughly CA$10.25 million.
Cultivation was suspended on the Niagara facility in late 2019 as half of a company downsizing push.
The choice to promote the power was made in early March, in keeping with Hexo.
A press release attributed the choice to “an excess of cultivation capacity in the market and estimated forecast demand for cannabis products, as result of slower than expected market development.”
Hexo’s Canadian friends have additionally been abandoning pricey cannabis greenhouses in current months:
Hexo plans to place the proceeds from the sale in the direction of increasing its facility in Belleville, Ontario, “and for working capital and other general corporate purposes.”
Hexo just lately posted a second-quarter internet loss of CA$298.2 million.