One after another, many of Canada’s largest cannabis greenhouses and indoor grow operations have been sold or mothballed as the industry continues to search for a supply-demand equilibrium after years of overproduction.
The facilities, each costing anywhere from 100 million Canadian dollars ($73 million) to more than CA$500 million, are being closed for various reasons.
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Some of the operations crashed into the cannabis industry’s hard macroeconomic realities: Canadian cultivators bankrolled and licensed too much cultivation capacity before and after adult-use legalization in 2018, which led to large-scale overproduction and plunging prices for low- to mid-quality products.
Companies also shuttered greenhouses because they failed to be as cost-effective as anticipated by both executives and investors.
And some were closed after companies, saddled with millions of dollars of debt – sometimes owed mostly to the Canadian government – became insolvent.
When cannabis producer Phoena Group, formerly known as
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