Adam Jackson
Budding Canadian-Israeli cannabis company Atlas Global Brands Inc. (CSE: ATL) is shutting down its Alberta operations in a bid to slash costs and streamline its operations in the country.
In a statement, the company said that it would also liquidate any assets tied to its smaller companies in the region, which includes layoffs impacting “approximately 50 employees.”
CEO Bernie Yeung said that the move was an effort to “strengthen our liquidity” and create a leaner base with higher margins as the company tries gaining a more solid foothold in Canada and Israel.
“Ceasing operations at the Gunn, Alberta, facility was an extremely difficult decision, that was not taken lightly,” Yeung said.
The move also means that Atlas will shift its packaging work to a different site in Ontario. This facility will become the firm’s primary processing hub for domestic and EU GMP flower and oils, it said. The new location will help the company distribute its products more efficiently.
Atlas has been actively growing since its listing on the Canadian Securities Exchange in January, including:
- Closing the acquisition of GreenSeal, an indoor growing location in Ontario in April, separately located from the new packaging hub.
- Shoring up controlling shares in six pharmacies in Israel and a trading house in Tel Aviv, which it plans on using to distribute products to all medical pharmacies in the region.
Yeung added that both the packaging and cultivation operations in Ontario will be able to produce “the quantity and quality of cannabis required for current and future demand.”
Atlas Biotechnologies Inc. and Atlas Growers Ltd., both smaller companies owned by Atlas Global, decided it was best to sell off the assets of the smaller companies to bring decent returns to everyone involved.
2 comments
Megan hude
June 7, 2023 at 8:00 pm
As a former worker of the facility in gunn. They handled everything poorly including giving us less than 24 hour notice that we were terminated. The Ontario new knew we were laid off bergore us. Bernie had a meeting with us a few months ago and for months we were told our jobs were secure and were told onwards for them. Just for them to pull this and ignore our questions. This is a perfect example of corporate greed, they don’t care that some of us are homeless next month just the fact that they can get a paycheck by shutting down the facility
Dave
June 11, 2023 at 8:44 pm
Ouch gutless