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Aurora Cannabis Inc. appears to have listed its greenhouse in Exeter, Ontario, for sale for $17 million, a move that one analyst said “implies massive writedowns” are coming.

A listing on Cushman & Wakefield’s website advertises a 22-acre greenhouse with a 15,000-square-foot propagation area on Exeter’s Airport Line, the same location as a greenhouse Aurora obtained as part of its $3.2 billion acquisition of MedReleaf Corp. in 2018.

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“This listing, for 75 per cent of former MedReleaf’s capacity, signals major writedowns ahead,” MKM Partners analyst Bill Kirk said in a note published Monday. “We are also discouraged with the visibility of Aurora’s strategy — investors were unaware Aurora was trying to sell Exeter,” despite a corporate update on Dec. 23. That same day, Aurora said Chief Corporate Officer Cam Battley would depart.

Aurora determined that the greenhouse would have required “retrofit and significant capital investment in order to meet Aurora’s production standards,” company spokeswoman Michelle Lefler said in an emailed statement Monday. “Aurora has taken decisive steps to rationalize capital expenditures and align our cultivation footprint to current demand, including selling the Exeter facility.”