Manitoba cannabis cultivator Bonify shutting down in wake of cannabis sales scandal
- Star Buds
- Aug 31, 2021
- 2 min read
Manitoba cannabis cultivator Bonify Holdings Corp. is shutting down, 2½ years after its sales license was suspended because the company sold illegally sourced marijuana into the regulated market.
Another Canadian company, CannTrust, is currently restructuring after violating federal cannabis regulations.
The impending closure of Winnipeg, Manitoba-based Bonify was announced in an Aug. 12 email to shareholders from CEO Pierre Morris. The email was obtained by MJBizDaily.
“The wind-down started on August 9, 2021 and will conclude in the next few weeks,” Morris wrote in the email, in which he cites “substantial challenges since (Bonify’s) inception, not the least of which was the suspension of its sales license for most of 2019.”
That license was reinstated by Health Canada in late 2019, and the company resumed selling recreational marijuana in Canada in mid-2020.
The privately held company brought products to market in Alberta, Manitoba, Ontario and Saskatchewan after the reinstatement and “realized over $1 million in gross sales in 2021,” Morris noted in his email to shareholders.
He added that Bonify “stabilized internal processes, increased production and significantly cut its operational costs.”
“Unfortunately, these changes were not sufficient to achieve profitability or positive cash flows and Bonify continued to suffer operational losses through 2019, 2020 and 2021.”
Although Bonify “attempted to find new sources of capital, partnerships to grow its revenue base and a purchaser for the business,” Morris wrote, those efforts failed.
His email to Bonify shareholders was first reported by Canadian cannabis news website StratCann.
In an email to MJBizDaily, Morris said he had “nothing further to add” in relation to that report.
Bonify’s illicit-cannabis scandal came to light in December 2018.
Health Canada soon confirmed that Bonify had released “unapproved cannabis products” for sale in the neighboring province of Saskatchewan.
Bonify recreational cannabis products in Manitoba and Saskatchewan were subsequently recalled.
The company hired George Robinson, then CEO of defunct cannabis company RavenQuest BioMed, to undertake an internal investigation.
Robinson revealed that 200 kilograms (441 pounds) of cannabis obtained by Bonify was considered “unauthorized product for sale,” although he said he was unable to determine its origin.
Three Bonify executives were terminated with cause in relation to the scandal, Robinson told media during a news conference at Bonify’s Winnipeg facility.
Bonify’s authority to sell cannabis was suspended by Health Canada in February 2019 but reinstated that October.
In November 2019, the Winnipeg Free Press reported that Bonify had reached out to shareholders to raise short-term capital as it sought acquisition by a larger company.
Despite the license suspension, Bonify was not fined for the violation by Health Canada, the Canadian marijuana regulator confirmed to MJBizDaily this year.
The Royal Canadian Mounted Police, Canada’s federal police force, did not conduct a criminal investigation into the matter, nor did the local Winnipeg Police Service.
this is a clear and detailed account of bonify's closure. it's notable how the company managed to resume sales and achieve some revenue after the license reinstatement, yet still couldn't reach profitability. the article effectively outlines the timeline from the scandal to the final wind-down. it's a sobering case study on the challenges in the regulated cannabis market, even for companies trying to correct course. Image 2
this is a detailed account of bonify's closure following the sales scandal. it's notable how the article traces the timeline from license suspension to the final wind-down, including the attempts at recovery. the mention of canntrust adds context about regulatory challenges in the industry. the use of the shareholder email provides a direct source, making the reporting feel grounded. Traducir Imagen
isappointing to see another company struggle in this industry, 1v1 lol especially after the issues they faced. It's a tough market out there.
Training can play an important role in helping newly adopted dogs adjust to their homes. Rescue dogs may arrive with unknown histories or https://noblek9.ca/ behavioral challenges. Professional trainers provide guidance during this transition period, helping dogs build confidence and trust. Structured training establishes routines and expectations that support successful integration into family life. With patience and consistency, adopted dogs can develop strong bonds and positive behaviors in their new environments.
Checking my uppcl bill online was a simple and convenient experience. The billing details were displayed clearly, allowing me to review charges and payment information without any confusion. The online system is user-friendly and accessible from home, which saves valuable time. It helps consumers stay informed about their electricity expenses and avoid missing payment deadlines. Overall, it is an efficient way to manage electricity billing information and maintain accurate records.