Shuttered Cannabis Operation Springs Back to Life – Purplefarm Genetics
A previously shuttered cannabis operation in Fredericton, NB is springing back to life. Purplefarm Genetics announced this week that it has purchased the facility from Canopy Growth. Originally opened in 2019, Canopy Growth shuttered cannabis operations in December 2020 during restructuring.
“We are excited to return the facility to operations and to make our mark in the Fredericton community,” said Jonah Clifford, COO of Purplefarm Genetics. “New Brunswick has become an excellent place to do business in the cannabis sector.”
Although the sale price was not announced, the facility was worth a reported $40 million when it opened.
The purchase seems to signal an expansion of the shuttered cannabis operation as well. When it opened, Canopy Growth expected to cultivate 5,000kg of cannabis per year. It laid off 60 people when it closed. Purplefarm Genetics plans to employ 70 people and grow 8,000kg of cannabis per year. That will increase its production over its current Johnston, Ont. facility by six times. The company said it needed to increase production to meet demand.
“This increased capacity will allow Purplefarm to execute and expand on its existing contracts and develop further premium product offerings. All Purplefarm-grown product has been consistently sold out since it started operating in 2020,” Purplefarm stated in a news release.
Purplefarm Expects Growth in Canada – LPC
Purplefarm’s purchase of Canopy Growth’s shuttered cannabis operation may be symbolic of change in the cannabis industry. But founder and master grower Mitchell Alswiti also believes their move is a result of a change in consumer tastes, which continue to mature.
“Consumer preferences will continue to evolve over time as they learn and demand more from the products they buy,” said Alswiti.
That certainly rings true from other segments of the industry. Last year, Aurora Cannabis and North 40 Cannabis partnered to leverage reach and quality, respectively. There are other similar examples.
But those aren’t the only changes sweeping Canada. GTA cannabis stores are shrinking to become more competitive. Cannabis marketing is starting to open up in places like BC. Smaller LPs in Manitoba are pooling resources to get the benefits of being bigger while keeping their autonomy.
All these point to the same conclusion – that the Canadian cannabis industry is changing.
This shouldn’t be a surprise to anyone. Any new industry will see a boom, bust, levelling out cycle. Purplefarm’s purchase of a previously shuttered cannabis operation may well be one of the indicators that we are getting closer to a stable, mature cannabis industry in Canada.
Read the Full Story at Huddle Today
ADD YOUR STORY HERE
Do you have a business in Canada’s legal cannabis market? Are you a craft cannabis producer or own a chain or independent cannabis retail store? Let’s tell your story here! A news article and your approved listing page make great ways to connect your brand with a qualified audience looking for what you are offering. Learn more about submitting your article to LPC.
