WeedMD Inc (CVE:WMD) (OTCQX:WDDMF) (FRA:4WE), a licensed producer and distributor of medical-grade cannabis, announced Thursday that it has reallocated all medical packaging, labelling and distribution activities from its Bowmanville, Ontario site to its Aylmer, Ontario facility which also houses the company’s extraction hub.
“These strategic steps are part of WeedMD's ongoing plan to maximize the utilization of its facilities, improve operational efficiencies and further align its cost structure while focusing on growth, following the successful integration of WeedMD and Starseed Holdings Inc,” said the company.
The structural changes have centralized production activities at WeedMD’s flagship London-area sites, which also includes the company’s cultivation centre of excellence in Strathroy, Ontario. With the exit from its 14,850-square-foot indoor facility in Bowmanville, Ontario which earlier served as WeedMD’s medical distribution hub, the company has offered relocation and severance packages to roughly 20 employees, said the company.
“Following an internal assessment of our entire organization, we took the decisive action to close our Bowmanville operations in order to optimize our production, reduce costs and accelerate our profitability goals,” said WeedMD chairman George Scorsis, who is also the interim CEO.
“We are now centralizing and fully utilizing our cannabis production sites and our talent to their fullest potential. While our Aylmer site will focus on product distribution, processing and extraction activities; our Strathroy facility will continue to be the centre of excellence for quality cultivation, biomass production and dried flower processing," he added.
The company said that for 2021, it is establishing enterprise-wide targets as part of its focus on "maximizing margins and increasing revenues."
“We thank all our dedicated employees for their commitment to their craft as we continue to produce and supply cannabis Canada with our premier Color, Saturday and Starseed Medicinal products,” said Scorsis.
WeedMD confirmed that all Starseed Medicinal patient orders began shipping from the company’s Aylmer facility on January 4, 2021.
WeedMD operates a 158-acre property in Strathroy, Ontario with a 550,000 square feet of greenhouse footprint and up to 100 acres of outdoor cultivation area; a 26,000-square-foot indoor facility in Aylmer, Ontario, which specializes in cannabis extraction and processing.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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