CANOPY GROWTH JOB CUTS
Canopy Growth cuts 800 jobs at flagship facility
Canopy Growth is closing its flagship cultivation facility in Smiths Falls, Ontario, and cutting more than a third of its workforce as part of a shift to an “asset-light model” in Canada, reports MJ Biz Daily.
The company has said the cost-reduction initiatives are expected to save the company CA$140 million to CA$160 million over the next year.
The publication highlights that the layoffs come as cannabis companies across North America have been shedding hundreds of jobs and closing facilities, and Jonathan Sherman, partner at Cassels and co-chair of the Toronto-based law firm’s Cannabis Group, said strict federal regulations have been the root cause of the industry’s struggles in recent years.
“I think this is squarely focused on regulatory failures of the Canadian government to give cannabis companies the right opportunities to thrive. We’ve been sitting around waiting for a refresh of the Cannabis Act that was supposed to happen already. There’s a lot of hurdles the government is not helping these companies with right now, whether it’s the biggest ones or the smaller ones.”
MINNESOTA LEGALIZATION
Minnesota cannabis legalization bill clears fifth senate committee
Marijuana Moment reports that a bill to legalize cannabis in Minnesota cleared its fifth Senate committee in a 5-4 vote on Thursday.
The publication notes that the state’s celebrity former governor, Jesse Ventura – former wrestler and long-time cannabis advocate – gave an impassioned speech, explaining how he broke the law to obtain cannabis that treated his late wife’s seizures when other medications failed.
Ventura argued that passing adult-use legalization would create competition that would lower costs for recreational consumers and patients: “I had to break the law. My friends had to send it to me in Minnesota. Well, I kind of took the attitude of ‘Dirty Harry’ Callahan when I said, ‘Well then, the law is wrong,’ because I’m putting my wife ahead of Minnesota law.”
EUROPEAN STOCK MARKET
Love Hemp becomes first cannabis casualty of 2023 as it calls in administrators
BusinessCann brings you its latest European Cannabis Stocks Review.
The publication reports on Love Hemp has called in administrators following the publication of a series of allegations against the company accusing its directors of fraud, however, Love Hemp ‘rigorously refutes’ all the allegations.
Additionally, Akanda has announced that its CEO Tej Virk has submitted his resignation which has seen the company’s share price drop by around 40% this week, ending a relatively positive few weeks for the stock, reaching prices not seen since October 2022.
Finally, MGC Pharmaceuticals saw its stock price increase 25% following a string of announcements, including its Q4 results and that it has secured US$600k in funding as part of its US$10m convertible securities financing facility with Mercer Street Global Opportunity fund.
