Multi-Million Dollar Cannabis Facility Auctioned For The Price Of A Studio Apartment: What’s Going On In Uruguay?

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By Natalia Kesselman via El Planteo

A medicinal cannabis production facility in Uruguay was auctioned off for just $335,000 — roughly the price of a two-bedroom apartment in the South American country, or the price of a studio apartment in the U.S. This figure has sparked considerable controversy, especially given that the company's original valuation stood at $9.5 million.

The facility belonged to Pharmin, a company backed by Georgian capital focused on the production and export of high-quality medicinal cannabis to Europe and Asia. Despite its promising prospects, the company vanished suddenly from the market in 2024. The whereabouts of its owners remain a mystery.

Layoffs Without Severance And Owners Nowhere To Be Found

Pharmin was founded in 2019 and quickly became a notable player in the Latin American medicinal cannabis industry. With a 2.3-hectare (5.68-acre) property in Uruguay, the company had the capacity to produce one ton of dried flower per month. However, in the early months of 2024, Pharmin abruptly shut down, laying off 65 workers via WhatsApp messages. To make matters worse, not only were they denied severance pay, but they also weren't deregistered from the Social Security Bank (BPS).

See also: Argentina’s Cannabis Industry Shakeup: Will The New Government-Appointed Comptroller Boost Business Opportunities?

The Ministry of Labor and Social Security (MTSS) has attempted to locate the company's responsible parties, but so far, their efforts have been unsuccessful. The only local contact, Nicolás Bustillo, brother of Uruguay's former foreign minister, has also cut communication with authorities.

The Auction Of Pharmin's Medicinal Cannabis Production Facility

Earlier this month, by court order due to the absence of the owners, Pharmin’s facilities were auctioned off. The sale was divided into two large lots. The first, a 24,000-square-meter greenhouse equipped with the latest technology, was sold for $205,000. According to Infobae, the buyer, a horticultural producer from Paysandú, is involved in both agriculture and drone-assisted forestry. The second lot, which included a fully equipped laboratory, was sold for $130,000 to a representative from Zonamérica, the business park where the facility was located.

"A 24,000-square-meter greenhouse, fully roofed with polycarbonate and lighting, was auctioned. There are approximately 18 sections with lights, and each section has 240 lights. Each light costs $1,000," explained Germán González, a leader of the Union of Rural and Agro-Industrial Workers of Uruguay (UTRAU), who described the total amount raised as "laughable."

"You need to understand what you’re selling. You can't give away something that cost $9.5 million for just $200,000. You can't even cover the cost of the nylon," he added indignantly.

González also criticized the speed of the auction, arguing that there wasn't enough time for other interested parties, including the workers, to participate. "We didn't have time to enter the auction. This didn't support the productive unit. They didn't wait for a trustee to be appointed," he remarked. "It wasn't handled correctly."

During the auction, González witnessed the process and lamented that no solution was offered to benefit the employees. "No one defended the workers. I was at the auction, and the auctioneer did his job, taking a long time to see if anyone would make a better offer. But when the final offer came, he looked at the bailiff, and the bailiff gave the go-ahead for the $205,000," he recalled.

This auction is not an isolated incident. González mentioned another company, Boreal, linked to the businessman who was murdered in Punta del Este by his ex-partner, which also went to auction. However, no agreement was reached as the base price was too low.

The fate of Pharmin, its sudden disappearance and the sale of its assets at prices far below their original value reveal the ongoing tensions faced by both affected workers and the medicinal cannabis business sector in Uruguay. Legal and financial uncertainty lingers, with no clear resolution in sight for those involved in this controversial case.

This article is from an external unpaid contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

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Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=66ed8afa157248899404f597d284a993&url=https%3A%2F%2Fwww.benzinga.com%2Fmarkets%2Fcannabis%2F24%2F09%2F40958522%2Fmulti-million-dollar-cannabis-facility-auctioned-for-the-price-of-a-studio-apartment-whats-going&c=2189805524509787522&mkt=en-us Author : Publish date : 2024-09-20 03:02:00 Copyright for syndicated content belongs to the linked Source .

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Multi-Million Dollar Cannabis Facility Auctioned For The Price Of A Studio Apartment: What’s Going On In Uruguay?

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