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Kirkland Lake is losing its cannabis operation

Indoor grow-op doesn't fit into Hexo Corp. plans
Delshen Kirkland Lake

The new owner of a Kirkland Lake cannabis operation has decided to close it.

Hexo Corp. announced the northeastern Ontario production facility will cease operations as of Jan. 31, 2022. 

After the Ottawa commercial grower and manufacturer went on an acquisition spree this year in picking up 48North Cannabis, plus two other competitors in the cannabis business, Hexo said it was decided to shutter Kirkland Lake and operations in Brantford and Stellarton, Nova Scotia.

Hexo didn't say in a news release how many employees in Kirkland Lake are being impacted but 155 employees are being pinkslipped at the three sites.  Hexo said these employees are being given the option of accepting jobs at Hexo's other sites.

In a news release, Hexo said the decision after evaluating all the facilities it picked up its acquisition of 48North, Redecan and Zenabis Global.
Hexo said it wants to centralize cultivation, manufacturing, and distribution at its core facilities.

A statement from Hexo CEO Scott Cooper said after reviewing all their operations, analyzing growth, profitability and efficiency, 48North's Kirkland Lake and Brantford facilities didn't make the grade and neither did Zenabis' Nova Scotia shop. 

"We are confident that our core sites, combined with strategic partnerships, will ensure sufficient supply of high-quality cannabis to meet demand.

"This was a very difficult decision, but it is a key component of our integration plan, and one that we believe best positions HEXO for continued growth. I would like to thank all of the employees at Kirkland Lake, Brantford and Stellarton for their efforts, dedication and professionalism in helping build HEXO.”

The Kirkland Lake growing operation opened for commercial production in June 2018. A former government tree nursery outside town was originally selected by Delshen Therapeutics and retrofitting into a 40,000-square-foot indoor growing facility.