Aurora Cannabis to close Edmonton facility, says 8% of its workforce to be impacted
Aurora Cannabis Inc. said eight per cent of its global workforce will be impacted by the forthcoming closure of one of its Alberta facilities.
The cannabis company announced Wednesday that it is closing its Aurora Polaris property in Edmonton as part of a plan to streamline its operations.
“This decision was not taken lightly. After painstaking review and thorough consideration, we are taking the necessary steps to strengthen our core operations to meet current and future demand,” the company said in an email to The Canadian Press.
“We aspire to be a leaner, more agile organization that keeps pace with our competition and is on a path to profitability. We believe these changes are imperative for our future success.”
An Alberta government website detailing major projects in the region shows the Aurora Polaris facility was about 2,787 square meters with one-third of the space dedicated to warehousing and distribution of cannabis products and the remainder hosting product manufacturing.
The website says the property had an estimated cost of $50 million and was adjacent to an Aurora Sky facility by the Edmonton International Airport.
Aurora Polaris' medical distribution operations will move to the Aurora Sky facility, while manufacturing will be relocated to Aurora River in Bradford, Ont.
Aurora, which is headquartered in Edmonton, will keep its corporate office in Alberta.
The changes come after the company moved the release of its fourth-quarter earnings from Sept. 21 to Sept. 27.
Analysts are not optimistic about the figures Aurora will report next week.
Bill Kirk, an analyst and executive director with MKM Partners, told investors in a Sept. 17 note that he feels Aurora has “limited prospects” to improve its position in the recreational cannabis market and is unlikely to beat profitability expectations.
He pointed out that in the 17 quarters Aurora has reported as a public company, it has missed consensus EBITDA expectations 17 times and he feels the firm will barely generate $50 million in revenue.
Cantor Fitzgerald analyst Pablo Zuanic felt similarly and said in a Sept. 16 note that his firm had cut its Aurora estimates and will not assume positive EBITDA for the company in its three-year projections.
Such concerns have long dogged Aurora, which spent much of the pandemic busy with a restructuring, layoffs and closures of several other facilities.
The Aurora Polaris closure was an extension of those efforts, the company indicated in an email.
“While we've made substantial progress transforming Aurora, the company continues to make tough yet responsible changes to further optimize our business,” it said.
Aurora has not been alone in making cuts.
Rivals Canopy Growth Corp. and Tilray Inc. have both worked to streamline their operations throughout the pandemic as they get a better sense of Canadian demand for cannabis.
Tilray, for example, said earlier this week that it would close a Nanaimo, B.C. office and facility.
This report by The Canadian Press was first published Sept. 22, 2021.
CTVNews.ca Top Stories
Canadian gov't proposes new foreign influence registry as part of wide-spanning new bill
Prime Minister Justin Trudeau's government is proposing a suite of new measures and law changes aimed at countering foreign interference in Canada, amid extensive scrutiny over past meddling attempts and an ever-evolving threat landscape.
Boeing Starliner capsule's first crewed test flight postponed
The long-awaited first crewed test flight of Boeing's new Starliner space capsule was called off for at least 24 hours over a technical issue that launch teams were unable to resolve in time for the planned Monday night lift-off.
Teacher charged in historical sexual assault of Calgary teenage girl
Calgary police have charged a teacher with the alleged sexual assault of a teenage girl more than 20 years ago.
Winnipeg man admits to killing four women, argues he's not criminally responsible
Defence lawyers of Jeremy Skibicki have admitted in court the accused killed four Indigenous women, but argues he is not criminally responsible for the deaths by way of mental disorder – this latest development has triggered a judge-alone trial rather than a jury trial.
Man banned from owning animals after fatal Calgary dog attack
The owner of three Calgary dogs that got loose and mauled a woman to death in 2022 has been ordered to pay a $15,000 fine within one year and banned from owning any animal for 15 years.
East-end Ottawa family dealing with massive rat infestation
Residents in Ottawa’s Elmridge Gardens complex are dealing with a rat infestation that just won’t go away. Now, after doing everything they can to try to fix the issue, they are pleading with the city to step in and help.
Mediterranean staple may lower your risk of death from dementia, study finds
A daily spoonful of olive oil could lower your risk of dying from dementia, according to a new study by Harvard scientists.
An El Nino-less summer is coming. Here's what that could mean for Canada
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
Newfoundland and Labrador latest province to tighten rules on Airbnbs
Newfoundland and Labrador is the latest jurisdiction to bring in stricter rules for short-term rentals, with a coming set of regulations that will force operators to register with the provincial government.