As if you needed more evidence that the weed industry is never boring, Monday brought big news from two of Canada’s most-hyped companies pre-legalization — some great, some not-so-much.
First, the good news…
Big ups to Auxly, who earned conditional approval to move on up from the Toronto Venture Exchange to the TSX.
It’s the next step in growth after a positive consumer response to both the Cannabis 1.0 and 2.0 categories, said CEO Hugo Alves. “By raising our profile in the investment community and enhancing the liquidity of our stock, we will be able to broaden our shareholder base and continue to build long-term shareholder value for our investors.”
Sounds like a plan.
…And then the bad
Just over two years after Ontario-based producer 48North announced it was the first to apply for an outdoor cultivation licence for its extract-focused “Good:Farm,” the company is winding down operations at the 100-acre site in Brant County, Ontario.
Citing an industry in transition and a glut of cannabis supply, CEO Charles Vennat said focusing on indoor cultivation is a path to profitability. That path also includes downsizing its workforce by about 20%, including the departures of two key executives, relative newcomer CFO Sean Byrne (appointed March 1, 2021) and Chief Growth Officer Kirsten Gauthier, who joined in 2017.
Note: Gauthier is credited with being the key brainchild behind what 48N is best known for: their amazing branding. Also drawing praise (via Twitter) from industry association CEO George Smitherman:
Life comes at you fast, sometimes you’re up (Auxly) and sometimes you’re down (48N). Whichever it is, remember: things won’t always be like this.