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WeedMD consolidates medical distribution activities

Closes facility to maximize production efficiencies

January 7, 2021   by GlobeNewswire

WeedMD Inc., federally licensed producer and distributor of medical-grade cannabis, has reallocated all medical packaging, labelling and distribution activities from its Bowmanville ON site to its Aylmer ON 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.

These structural changes, completed in January 2021, now centralize production activities at WeedMD’s flagship London-area sites, which also includes the Company’s cultivation centre of excellence in Strathroy, Ontario. With the exiting of its Bowmanville facility, which served as WeedMD’s medical distribution hub, the Company has offered relocation and severance packages, where applicable, to about 20 employees.

Strathroy facility is centre of excellence for quality cultivation

“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 George Scorsis, Executive Chairman and Interim CEO, WeedMD. “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. For 2021, we are establishing enterprise-wide targets as part of our 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.”

 

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