Neptune Wellness Solutions is the latest business to retreat from Canada’s increasingly competitive cannabis industry.
The Laval, Quebec-based company said in a Wednesday news release it plans to accelerate the divestiture of its cannabis business to focus on areas with greater potential such as its consumer products business.
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The move comes after Neptune raked up almost 300 million Canadian dollars (CA$236 million) in losses in recent years.
The company says it plans to sell its cannabis brands, Mood Ring and PanHash as well as its Sherbrooke, Quebec, facility.
Neptune’s pullout isn’t the first company to pull out of the Canadian cannabis market.
In 2020, FSD Pharma said it planned to exit the marijuana industry and relinquish Health Canada cannabis licenses held by subsidiary FV Pharma.
Neptune said in its release that it retained Stifel GMP to support the divestiture efforts and the structure was appraised at CA$21 million.
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