Deep cuts at Canopy

Photo: Adobe/the oz.
1 Hershey Drive in Smiths Falls is pictured.

Canopy Growth is doing some heavy pruning.

The company announced Thursday it plans to close its 1 Hershey Drive facility in Smiths Falls, Ont., which early on in legalization was compared to Willy Wonka’s chocolate factory.

It also plans to cut 60% of its workforce—about 800 jobs total, 40% of which are impacted immediately.

Canopy says its West Kelowna grow facility, Doja, will continue to operate, as will its facility in Kincardine, Ont.

“We are transforming our Canadian business to an asset-light model and significantly reducing the overall size of our organization. These changes are difficult but necessary to drive our business to profitability and growth,” says Canopy CEO David Klein.

“Canopy must reach profitability to achieve our ambition of long-term North American cannabis market leadership.”

The cannabis corporation made the announcements Thursday in its most recent quarterly results.

The company posted net revenue for its past fiscal quarter of $101 million, down 28% from a year ago, for a net loss of $267 million. While its revenues drop, its operating expenses are increasing.  

Canopy says it will be eliminating 25-50% of its cannabis products from shelves.

Sales of dry-herb vapourizers by Storz & Bickel have also dipped.

Athlete supplement brand BioSteel, which falls under Canopy’s umbrella, appears to be doing relatively well. And its US holding, Acreage, is reporting increasing revenue.

Give a hit to the oz.

Class-action lawsuit against banks

A class-action lawsuit has been launched against several major Canadian banks, accusing them of “financial discrimination.”

Bank of Montreal, CIBC, Desjardins Federation, National Bank, Royal Bank, and TD Bank are named.

"For far too long, Canadian banks have treated the cannabis industry like pariahs, as if it was still completely illegal. By doing so, they are depriving the Canadian, but especially the local, economy of developing a promising market," says Maxime Guérin, a lawyer with Quebec-based law firm Groupe SGF

Read more on the oz.

Which eighth is the most wasteful?

Mika Unterman has collected thousands of pieces of cannabis packaging, gathering them for an analysis on which 3.5 gram packaging is the most wasteful in the market today.

She worked with Seneca College in Toronto to weigh and catalog them, and has now reduced them to the five worst offenders.

“The idea was to highlight packaging that had a large impact relative to the weight of the product, especially since most packages go to landfills because of the adhesive,” says Unterman in a chat with the oz.

Take Ace Valley, for example, which the study rated the worst. The packaging weighs 53 grams—15 times the 3.5 grams of dried flower inside.

How much is ending up in the landfill?

Unterman founded Apical Ethical Cannabis Collective to advocate and work toward a more inclusive, sustainable and socially responsible cannabis industry.

Exactly how much cannabis packaging has ended up in landfills hasn’t been nailed down, but Unterman has guessed.

“We can only extrapolate but my understanding in talking with a few material recovery facilities is that less than 5% can be recycled,” says Unterman.

Unterman says there is a marketing benefit from being green; sustainability is a selling point that can create consumer loyalty.

Find out who are the 5 worst offenders on the oz.

This week's features

A look at what science says about CBD’s health benefits

CBD is not a cure all, but university professor and pharmacology department chair Kent E Vrana writes that there is lots of promising medical evidence backing CBD, with the potential to benefit millions through the treatment of seizure disorders, pain, and anxiety. He also says there are risks with unregulated CBD.

Read more

Apartheid’s war on weed still felt in South Africa

Poor rural communities in South Africa have long cultivated cannabis in illegal conditions of risk. They now face losing out to corporate interests and the wealthy. How did the stakes become so high—and so unequal?

Read more

Quick hits

🏛 IOU: The Flowr Corporation owes the District of Lake Country over $30,000. (Okanagan Journal)

🛒 Hard times: Cannabis chain once worth $1.7 billion and called the ‘Apple store of weed’ is now nearly failing (Fortune)

💄 Just say no: Amsterdam bans cannabis in its red light district (BBC)

🚘 Bad mistake: Driver charged with cannabis impairment after passenger is run over (Calgary Herald)

💸 Oof: Aurora Cannabis records $67.2 million net loss in second quarter (Financial Post)

Latest poll


Spinach Becomes the Number One Edible Brand in January

Cannabis Wiki Launches First-Of-Its-Kind Consumer & Brand-First Technology Platform, Weedpanion

Heritage Cannabis Appoints Chief Operating Officer and Chief Commercial Officer

HEXO Increases Production of Its Popular Straight Edge Pre-Rolls

New Survey Reveals Majority of American Adults Plan to Use or Gift Cannabis This Valentine’s Day

SNDL Expands Retail Network via Conclusion of Superette Group’s CCAA Proceedings

Purple Punchsicle by Dymond

Vapes have been hit and miss for me.

It’s iffy whether I actually feel anything from them, and they usually sit in my stash unused.

Dymond Concentrates 2.0’s Purple Punchsicle is definitely a hit.

The 510-thread vape cart was recommended to me by a North Okanagan store owner. Dymond, based in nearby Enderby, BC, has years of experience with concentrates.

It shows in Purple Punchsicle’s look, taste, and effect.

The packaging does its job, securing the cart firmly inside; it does take a bit of effort to get it open.

The one-gram cart itself is slick. It has a nice design and the oil inside is a beautiful colour and consistency.

The glass mouthpiece feels great and the vapour just rolls out of it for smooth hits.

Its pleasant taste is a cross between a purple freeze pop and classic cannabis.

The Diamond Sauce vape combines THCA diamonds and ‘high terpene sauce.’ It hits hard with a heady high that melts down into the body.

The cart is 78.3% THC and is a Hybrid extract.

It was $37 before taxes, including BC’s vape tax, bumped the total by another $10.

I'll look for more Dymond products in the future.

— David Wylie

More reviews

Dad jokes

I asked a girl for a date and she said I had a face like the back of a boat.
I didn't reply but I gave her a stern look.

A cute vegan girl asked me out the other day.
I am really nervous because I have never dated herbivore.

What did the elephant say to the naked man?
How do you breath through that tiny thing?

- r/dadjokes

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