Article by Dale Carruthers, London Free Press
WeedMD has shuttered its packaging plant east of Toronto to consolidate its operations in the London area, the cannabis company says.
The pot producer’s decision to close its Bowmanville facility comes less than two weeks after chief executive Angelo Tsebelis resigned, the second leadership shakeup at the publicly traded company in the last year.
Some of the approximately 20 workers who packed, labelled and shipped medical marijuana in Bowmanville have been offered the opportunity to relocate to the Aylmer extraction facility, WeedMD said.
“Following an internal assessment of our entire organization, we took the decisive action to close our Bowmanville operations . . . to optimize our production, reduce costs and accelerate our profitability goals,” executive chairperson and interim chief executive George Scorsis said in a release.
“We are now centralizing and fully utilizing our cannabis production sites and our talent to their fullest potential.”
WeedMD took possession of the Bowmanville plant in 2019 after acquiring Starseed, a Toronto company that supplied insurance-covered medicinal marijuana to its members, in a $78-million all-stock deal.
The acquisition was touted for its potential to boost WeedMD’s prescription pot patient base because Starseed was backed by the Laborers’ International Union of North American (LiUNA), Canada’s largest construction union.