Neptune Wellness exiting Canadian cannabis business, laying off half of workers

Neptune Wellness Solutions Inc. said Wednesday it’ll reduce its work force by half as part of a plan to exit the cannabis business in Canada. The company had 127 employees in 2021 and 165 employees in 2020, according to filings. The Laval, Quebec-based company said it’ll sell cannabis brands Mood Ring and PanHash, as well as its Sherbrooke, Quebec facility, which has an appraised value of about C$21 million ($16.8 million). Neptune has retained Stifel GMP to work on its divestiture effort. Neptune said it’ll instead focus on consumer packaged goods. The move comes amid price pressure and steep competition in the Canadian cannabis market. Shares of Neptune, which has a market cap of $27 million, fell 4% in premarket trades.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.