Kronos Group plans to “gradually reduce and transform activities”, which is supposed to shut down the plant completely by the end of 2022.
A major cannabis grower in the town of Clearview is set to close later this year.
According to an investor update posted on their website on March 1, Cronos Group announced that it will close the Peace Naturals campus at Stayner in 2022.
“A comprehensive analysis of this decision has been carried out,” Cronos Group CEO Kurt Schmidt said on a conference call with investors on Tuesday. “We know this is the right decision to ensure Cronos’ long-term growth.”
“We have always emphasized that agriculture will transform into agricultural specialists on a large scale as the industry matures,” he said. “We are confident that our supply chain in Canada is at a level of maturity where we can implement this approach.”
“We are grateful to our Stayner partners for their hard work and contributions to the Cronos Group,” he said.
The release states that Cronos is planning a “gradual reduction and diversion of activities,” which should see the plant shut down completely by the end of 2022.
The research and development that occurred at the Stayner plant will be transferred to other Cronos facilities.
According to their update, Cronos expects $119 million in impairment charges and $4.5 million in other charges due to the campus closure.
In their report, they noted, “This fee includes employee-related costs, such as termination, transfer 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.”
According to media reports, it has an area of 315,000 square feet. The campus employs about 200 workers. The Natural Peace Project began in 2013 as the first licensed medical marijuana producer in Canada.
Peace Naturals and the Kronos Group did not respond to interview requests from CollingwoodToday.ca.