The closure of the Neptune Wellness Solutions plant in Sherbrooke next month “is a disaster”, according to the company's former chairman of the board, who denounces the decisions taken in the United States rather than in Quebec.
“The company was perhaps at 600 million dollars in market capitalization. However, it is not even today at the value of the factory. It's a disaster,” laments the former chairman of Neptune's board, Michel Timperio.
“I am especially saddened for the employees and shareholders – including myself – who lost a lot of money with all this,” adds the man who also chairs the Association québécoise de l'industrie du cannabis.
At least 86 workers laid off
According to the layoff notice, more than 86 workers from the processing plant of cannabis who will lose their positions on August 2.
“Decisions are made on the American side, while its head office is in Laval,” regrets Michel Timperio, who worked there for nearly 20 years.
On Wednesday, Neptune responded with writes to the Journal that it has chosen to develop the market for everyday consumer products.
“As a result, we have made the difficult decision to withdraw from the Canadian cannabis market. This includes the sale of the Mood Ring and PanHash brands as well as the company's facilities in Sherbrooke,” the company confirmed. .
100 % loans repaid
In total, Investissement Québec (IQ) and the Ministry of the Economy paid out more than $613,016 subsidies to Neptune. The company also received loans of nearly $15 million, which have been fully repaid, IQ confirmed.
According to Michel Timperio, however, Quebec should help the cannabis industry more, otherwise other players will fall in the coming months.
Recall that the Minister of the Economy, Pierre Fitzgibbon, was already Chairman of the Board of Neptune before its more cannabis-focused shift.
Over the past 12 months, Neptune's stock has lost over 96% of its value.
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Katrine Johns has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Gal Post, Katrine Johns worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my firstname.lastname@example.org 1-800-268-7128