Aurora Eau, situated in Lachute, Quebec, is among the many amenities to be closed. (Photo by way of a U.S. Securities and Exchange Commission submitting.)

(This story was up to date to replicate new data on the restructuring of Aurora’s government management staff.)

Aurora Cannabis is shutting down five smaller manufacturing amenities and chopping roughly 700 staff as part of a company transformation plan over its subsequent two quarters, with the objective of centralizing manufacturing and manufacturing at “larger-scale and highly efficient sites.”

Aurora’s resolution is the most recent in a pattern that has seen massive Canadian producers mothballing extra amenities.

The Edmonton, Alberta-based firm’s affected amenities are:

  • Aurora Prairie in Saskatoon, Saskatchewan.
  • Aurora Mountain in Mountain View County, Alberta.
  • Aurora Ridge in Markham, Ontario.
  • Aurora Eau in Lachute, Quebec.
  • Aurora Vie in Pointe-Claire, Quebec.

In a information launch issued Tuesday, Aurora mentioned components of the Aurora Vie facility “will remain operational to allow for the manufacturing of certain higher-margin products.”

Production and manufacturing will finally be centralized on the Aurora Sky and Polaris amenities in Edmonton, the Aurora River facility in Bradford, Ontario, and the Whistler Pemberton facility in Pemberton, British Columbia.

“As part of the transition, the Company also intends to immediately ramp up cannabis production at its Nordic facility in Europe from which it believes (it) can adequately service the European market with EU-GMP (European Union-Good Manufacturing Practice)-certified product,” Aurora mentioned.

The future of the closed amenities has but to be decided, in accordance to Aurora spokeswoman Michelle Lefler.

“At the time of facility closures, we will evaluate next steps in accordance with fulfilling shareholder obligations,” she wrote in an e-mail to Marijuana Business Daily.

Aurora’s cuts additionally embody layoffs of manufacturing and administrative staff.

Selling, basic, and administrative staff shall be reduce by about 25%, “most with immediate effect,” and manufacturing staff shall be lowered by about 30% over the following two quarters.

The layoffs will have an effect on roughly 700 Aurora staff, in accordance to Lefler.

The Alberta firm mentioned the job cuts “include a restructuring of the executive leadership team and the recently announced retirement of President Steve Dobler.”

Aurora confirmed Shane Morris was now not with the corporate. Morris was promoted to chief product officer in November.

Terry Booth stepped down as CEO in February, whereas Steve Dobler introduced his retirement from the corporate final week. Dobler has been president and a member of the corporate’s board since 2014.

The facility closures include asset-impairment expenses value up to CA$60 million ($44.four million) in Aurora’s present quarter, the corporate mentioned.

Aurora additionally plans to document a CA$140 million cost for “the carrying value of certain inventory, predominantly trim, in order to align inventory on hand with near-term expectations for demand.”

Interim CEO Michael Singer mentioned within the launch that “both the Canadian facility rationalization and inventory revaluation are expected to improve gross margins and accelerate our ability to generate positive cash flow.”

Aurora reported a web loss of CA$137 million in its most up-to-date quarter.

The firm’s resolution to shutter the five amenities is the most recent closure carried out by a giant Canadian hashish producer.

Some examples embody:

As far again as 2017, Canadian producers had bankrolled greater than sufficient cover to meet demand for the leisure market, however some publicly traded corporations continued to construct and purchase extra cultivation house within the ensuing years.

Aurora trades as ACB on the New York Stock Exchange and the Toronto Stock Exchange.

Solomon Israel might be reached at [email protected]

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