While it is true that closing different physical operations would seem to be a negative, Aurora Cannabis is in the midst of reducing costs and becoming a profitable company. To that end, the famous cannabis firm has decided to close its flagship Aurora Sky facility in Edmonton, Alberta. These closures are in addition to the prized Anandia testing and genetics division and an outdoor farm in British Columbia.
The Edmonton-based producer also highlighted the pending sale of its Sun facility in Medicine Hat, Alberta. While the initial offer was for approximately $195 million, Aurora appears to be settling for a $36 million transaction. The deal has not yet been finalized, but talks are ongoing.
The various sales and closings of facilities seem to have become more consistent over the past week or so. At the same time, Aurora has revealed its third-quarter earnings, where the company showed a loss of approximately $780 million. According to company management, these recent measures are part of a plan to save an average of $125 million in annualized costs for the first half of its next fiscal year.
“Simply put, our business is bigger than we need it to be, and we must position ourselves to better secure our path to profitability and ultimately succeed in this industry for the long term,” said CEO Miguel Martin. “Despite our best efforts, we are significantly over capacity and had to make the difficult decision to scale back operations at Sky.”
During that video message, Martin made it clear that Deloitte’s consultants have been asked to ensure that every decision made is properly analyzed and validated. A spokesperson said the company would continue to operate a corporate office in Edmonton despite the closure made on the area.