A major cannabis grower in Clearview Township will be closing its doors later this year.
According to an investor update posted on their website on March 1, Cronos Group announced they will be closing their Peace Naturals campus in Stayner in 2022.
“Extensive analysis went into this decision,” said Cronos Group’s Chief Executive Officer Kurt Schmidt in a conference call with investors on Tuesday. “We know this is the right decision to ensure Cronos’ long-term growth.”
“We have always maintained that cultivation would shift to large-scale agricultural specialists as the industry matures,” he said. “We are confident our supply chain in Canada is at a maturity level where we can implement this approach.”
“We are grateful to our Stayner associates for their hard work and contributions to Cronos Group,” he said.
The release states that Cronos is planning a “phased reduction and transition of activities,” which should see the plant close completely by the end of 2022.
Research and development that occurred at the Stayner plant will be moved to other Cronos facilities.
According to their update, Cronos is anticipating $119 million in impairment charges and $4.5 million in other charges due to the closure of the campus.
“These charges include employee-related costs, such as severance, relocation and other termination benefits, as well as contract termination 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-sq.-ft. campus employs about 200 workers. The Peace Naturals Project was started in 2013 as the first licensed producer of medicinal marijuana in Canada.
Peace Naturals and the Cronos Group did not respond to interview requests from CollingwoodToday.ca.
