FILE PHOTO: A sign featuring Canopy Growth Corporation’s logo is pictured at their facility in Smiths Falls, Ontario, Canada, January 4, 2018 .Picture taken January 4, 2018. REUTERS/Chris Wattie
(Reuters) – Pot producer Canopy Growth Corp (WEED.TO) said on Wednesday it plans to close two of its greenhouses in Aldergrove and Delta, British Columbia, cutting about 500 positions.
The company said it no longer plans to open a third greenhouse in Niagara-on-the-Lake, Ontario. (reut.rs/2VJPxgF)
Canopy had said last month it aims to focus on reducing costs, as it struggles with a slump in weed prices from oversupply and growing expenses.
More than a year after Canada legalized recreational weed, most producers have failed to turn profitable because of fewer-than-expected retail stores and oversupply issues, while a cash crunch threatens the survival of many companies.
Reporting by Neha Malara in Bengaluru; Editing by Shounak Dasgupta