Neptune Wellness set to make gradual exit from cannabis industry

Mugglehead

As the legal cannabis industry continues to grow, Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) has chosen to relinquish ties to the market due to difficulties turning over an adequate profit.

On Wednesday, the Quebec-based firm said that it would be launching a new Consumer Packaged Goods (CPG) focused plan of action to improve revenue-generating potential and augment current shareholder worth.

Neptune’s new plan builds on a strategic assessment from last fall and consists of two primary courses of action.

The first will be a calculated and accelerated divestiture of company assets tied up in the Canadian cannabis business. The second will be a reassessment of company priorities and financial restructuring of operational resources distributed within the organization. The company has concluded that its consumer products business is yielding greater potential than its cannabis sector.

Read more: Neptune reports Q3 revenue up 17% to $18.4M, net loss of $21M

Read more: Legal cannabis market projected to have steady growth into 2030: report

The planned divestiture organized by Neptune will include selling the company’s $21 million facility in Sherbrooke, Quebec. Additionally, Neptune will be parting ways with its Pan Hash and Mood Ring cannabis brands.

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Neptune Wellness set to make gradual exit from cannabis industry