Association Québécoise de l'Industrie du Cannabis
  • Closure of Neptune plant 'is a disaster'

Closure of Neptune plant 'is a disaster'Economy

Publié le 8 July 2022 par AQIC

The closure of the Neptune Solutions Bien-Être plant in Sherbrooke next month "is a disaster", according to the company's former chairman of the board, who denounces the decisions made in the United States rather than in Quebec.

“The company was maybe $600 million in market capitalization. However, it is not even today at the value of the factory. It's a disaster", said Neptune's former board chairman, Michel Timperio.

"I am especially saddened for the employees and the shareholders - of which I was -, who lost a lot of money with all this", adds the one who also chairs the Quebec Cannabis Industry Association (AQIC).

At least 86 workers laid off

According to the layoff notice, more than 86 workers at the cannabis processing plant will lose their jobs on August 2.

"Decisions are made on the American side, while its head office is in Laval", regrets Michel Timperio, who worked there for almost 20 years.

On Wednesday, Neptune replied in writing to the Journal that it had chosen to develop the consumer packaged goods market.

“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.

Loans 100% repaid

In total, Investissement Québec (IQ) and the Ministry of the Economy paid more than $613,016 in 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.

Remember that the Minister of the Economy, Pierre Fitzgibbon, was already Chairman of the Board of Neptune before its shift more focused on cannabis.

Over the past 12 months, Neptune's stock has lost over 96% of its value.

Source : Journal de Québec