48-North.. shutdown of outdoor facilityOutdoor growing was thought to have been a better and cheaper way to produce cannabis however has proven to be a money losing approach to growing. Why? Mostly due to quality control needed to produce consistent quality products that pass health Canada standards etc but (i suspect) the challenges with weather, bug control, high / low mositure etc that goes along with outdoor growing proved to be too much to ensure a constant supply of useable plants to meet the demand for plants.
48 North shutting down the outdoor growing facility should come as no surprise. The expense that went into trying this approach likely lead to the financial challenges that resulted in 48 North opting to sign a low dollar deal with HEXO in order to avoid going bankrupt.
HEXO picked up the operation at a discount and will not utilitize the 48-North Facilities to support its own operation, supply of plants etc as sales in Canada expand and the company needs additional product for shipments overseas