Parent company closes Peace Naturals cannabis campus in Stayner

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Cronos Group plans a “gradual reduction and transition of activities”, which should see the factory close completely by the end of 2022

A major cannabis producer in Clearview Township will close later this year.

According to an investor update posted on their website on March 1, Cronos Group has announced that it will be closing its Peace Naturals campus in Stayner in 2022.

“This decision has been the subject of careful analysis,” Cronos Group CEO Kurt Schmidt said during a conference call with investors on Tuesday. “We know this is the right decision to ensure the long-term growth of Cronos.”

“We have always maintained that cultivation will shift to large-scale farming specialists as the industry matures,” he said. “We are confident that our supply chain in Canada is at a level of maturity where we can implement this approach.”

“We are grateful to our Stayner associates for their hard work and contributions to the Cronos Group,” he said.

The statement said Cronos is planning a “gradual reduction and transition of activities“, which should lead to the complete closure of the plant by the end of 2022.

Research and development done at the Stayner plant will be moved to other Cronos facilities.

According to their update, Cronos expects $119 million in impairment charges and $4.5 million in other charges due to the campus closure.

“These charges include employee-related costs, such as severance, relocation and other termination benefits, as well as contract termination costs and other related costs, which are expected to be incurred primarily in the second half of 2022.” , they note in their report.

According to media reports, the 315,000 square feet. campus employs approximately 200 people. The Peace Naturals Project was launched in 2013 as the first licensed producer of medical marijuana in Canada.

Peace Naturals and Cronos Group did not respond to interview requests from CollingwoodToday.ca.

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