Cannabis producer Hexo shutting down facilities amid deep staff cuts

Cannabis producer Hexo Corp. will shut down several facilities it operates near Niagara Falls, Ontario, as a result of 200 layoffs it announced Thursday, according to people familiar with the matter. Hexo HEXO, -1.59% HEXO, -5.70%  did not respond to phone and email requests for comment. It was not immediately clear what the impact of the Ontario facilities’ closure will be on the company’s operations. The Ontario facilities were once operated by Newstrike Brands, which Hexo acquired in the spring. Hexo had 822 employees as of April 30, according to its last quarterly filing, and added about 250 more when its Newstrike acquisition closed in May. The shutdown and layoffs at Hexo arrive amid a broad downturn in the sector, as cannabis companies in Canada struggle to meet investor expectations and, in some cases, their own — as in Hexo’s case. The dearth of retail weed stores remains an ongoing issue in Canada as the first anniversary of legal, recreational pot rolled by on Oct. 17. Wall Street analysts have also tamped down expectations for the past several weeks, issuing a wave of price target reductions. Hexo stock closed down 6.3% in regular trading and fell 2% during the after-hours…

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