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Van Sun says Canopy not alone in finding it tough

2020-03-06 06:56 ET - In the News

The Vancouver Sun reports in its Friday edition that in one go, half the B.C. greenhouses converted to marijuana cultivation in the lead-up to cannabis legalization were taken off the market Wednesday with Canopy Growth's decision to close its Lower Mainland operations. The Sun's Derrick Penner writes that Canopy chief executive officer David Klein cited a market that has developed slower than expected and challenges in raising capital for the decision to close its three million square feet of greenhouse space split between a 1.7-million-square-foot greenhouse in Delta and a 1.3-million-square-foot greenhouse in Langley. It is likely that other greenhouse producers are feeling similar strains, according to Deepak Anand, CEO of Materia Ventures. Mr. Anand said some growers have discovered that outdoor cultivation is a cheaper option for production, but more generally companies struggling to make profits in a market where sales have not lived up to expectations cannot raise the capital they need to build or renovate greenhouses. Capital markets have "completely dried up," he says. B.C.'s pot greenhouses cover at least five million square feet, or 50 hectares, equivalent to just over half of Burnaby's Central Park.

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