Manitoba-based cannabis producer Bonify has informed shareholders this week that they intend to “wind down” their business in the next few weeks.
The announcement was sent out to shareholders via email, explaining that the wind down started on August 9, and will conclude in the next few weeks.
The email says that although the company had “realized” more than $1 million in gross sales since their licence was reinstated in late 2019, it was not enough to keep the cannabis producer afloat. Bonfiy had their cannabis production licence suspended in early 2019 following allegations in late 2018 that they were selling illegally-obtained cannabis.
Three Bonify executives were dismissed in December 2018 after it was determined they had used a third party to buy cannabis from the black market, selling it in several Manitoba and Saskatchewan retail stores.
At the time, the Liquor, Gaming and Cannabis Authority of Manitoba and Manitoba Liquor and Lotteries Corporation suspended the sale of all cannabis products produced by Bonify. Their licence was then reinstated in October 2019. An investigation found that Bonify had 200 kilograms of cannabis product in their facility that was not authorized for sale.
In the email sent out to shareholders this week, Bonify General Manager and CEO Pierre Morris blamed a lack of access to capital for why the company was no longer able to continue. Morris was unavailable for comment as of press time.
Bonify’s products are currently listed on the OCS’ website and Alberta’s cannabis website, as well as their own online medical platform.