Aurora Cannabis has announced it will close five of its Canadian facilities

The Edmonton-based company will also reduce its administrative and production staff by significant numbers

Aurora-Cannabis

As it shuts down some of its Canadian operations, Aurora has announced plans to immediately ramp up cannabis production at its Nordic facility in Odense, Denmark, to service the European market.

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Aurora Cannabis has announced that it plans to close operations at five of its facilities (Aurora Prairie in Saskatchewan, Aurora Mountain in Alberta, Aurora Ridge in Ontario, and Aurora Vie and Aurora Eau in Quebec) over the next two quarters. According to a press release issued Tuesday, the Edmonton-based company intends to consolidate its Canadian production and manufacturing at its larger-scale facilities—Aurora Sky in Alberta, Aurora River in Ontario, Whistler Pemberton in B.C., and Polaris in Alberta.

According to the June 23 press release, Aurora has also”executed a material reduction in both corporate and production level employees and third-party consulting and professional spending across the organization”.

These changes include an approximate 25 percent reduction in the company’s Selling, General and Administrative (SG&A) staff and an approximate 30 percent reduction in production staff over the next two quarters.

“The corporate headcount rationalization was undertaken at all levels of the Company,” the release states, “including a restructuring of the executive leadership team and the recently announced retirement of President Steve Dobler.”

Michael Singer, Aurora’s executive chairman and interim CEO, is quoted as saying. “With today’s announcement we have achieved our stated SG&A run-rate target and expect to operate at approximately $42 million for the first quarter of fiscal 2021. The further cost savings and margin improvement to be realized from our facility rationalization plan is another example of our commitment to deliver greater efficiency throughout the business.”

As it shuts down some of its Canadian operations, Aurora has announced plans to immediately ramp up cannabis production at its Nordic facility in Odense, Denmark, to service the European market.

At the close of the day’s trading, Aurora shares were trading at $18.40 on the Toronto Stock Exchange.

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