A subsidiary of HEXO since its takeover in 2021, Zenabis, including its manufacturing plant in Atholville, will be taken over by Sundial Growers (SDNL) of Alberta.
The news was confirmed in a company statement dated November 1. This comes a month after its previous owner (HEXO) announced that it was laying off 28 people at the Atholville plant in a move of remorse to ensure the existence and long-term viability of the business. In June, 42 employees suffered the same fate. At present, the Atholville plant will have just over 70 employees, with over 400 already employed.
Thus, the history of the HEXO family for the Zenabis subsidiary will be short-lived. It should be remembered that he was in the process of concluding agreements with creditors in order to avoid bankruptcy.
HEXO, which has been experiencing liquidity problems for several months, in particular, forced some operations to be cut, including the complete closure of one of Stellarton’s Nova Scotia subsidiaries.
With this deal, Sundial becomes the owner of the Atholville Cannabis Factory, a 380,000 square foot indoor marijuana plant with an annual production capacity of approximately 46,000 kg of dried cannabis and an extraction capacity of 15,000 kg.
The cost of this acquisition and the impact on employees were not disclosed. It doesn’t matter, Sundial’s management is optimistic about the arrival of a new flagship in their team.
“We look forward to partnering with our colleagues at Zenabis to capitalize on the opportunities this acquisition presents. As our company seeks to expand its international export business, the Athollville plant and Zenabis customer relationships are valuable assets,” said Sundial director Zach George.
Through this deal, Sundial acquires the Zenabis trademark and many of its products. It also gets its hands on over 22 million grams of cannabis, which will reduce short-term growing needs and is expected to be monetized through wholesale deals, international exports and branded products.
The company also inherited some assets, including a 255,000-square-foot factory in Stellarton.
Please note that due to Zenabis’ status under the Creditors Act, the transaction must be approved by the Supreme Court of Quebec.
The mayor of Athollville, Jean-Guy Levesque, learned from the media about the deal, which ended up in his cannabis factory in the sundial camp. As a result, he does not know the intentions of the company. However, what he has read gives him the impression that new customers are delighted with their purchase.
“We knew something was going on since last month management signaled an opportunity, or at least that a promising and very creditworthy player was interested in infrastructure. Since then, we have been crossing our fingers for this deal to go through because the goal is to keep our plant and the jobs associated with it,” the mayor said, acknowledging that the uncertainty surrounding the future of the Restigochoise plant has weighed heavily on since its opening. takeover by HEXO.
At the time of the interview, he had not yet discussed with the new buyers their vision for the Atholville plant, and he intends to fix that as soon as possible.
“We want them to know that the community is behind this project, that we want it to work, and that the municipality is ready to work with them. Several times we have been full of hope for this factory, and we will continue to hope that this time will be right. We not only want it to keep working, but also to prosper in order to repatriate lost jobs,” he said.
Who is a sundial?
Sundial Company is a private liquor and cannabis retailer based in Alberta. The company uses indoor facilities to supply wholesale and retail customers with a portfolio of cannabis brands that includes Top Leaf, Sundial Cannabis, Palmetto, Spiritleaf Selects and Grasslands.