An Ontario cannabis company’s plan to put down roots in London – and bring more than 200 promised jobs – has gone up in smoke.

Beleave Kannabis Inc., a licensed pot producer with an operation in Hamilton, bought the former Heritage Garden Gallery greenhouse at 6867 Wellington Rd. S. last September, paying $6.7 million at the time.

The company planned to grow cannabis inside the 23,000-square-metre greenhouse and on an outdoor plot located on the 34-hectare property.

The Oakville-headquartered grower pledged to invest $30 million in the facility, employ an estimated 240 workers and be operational by September 2019, then-chief executive Bill Panagiotakopoulos told the Free Press at the time.

But Beleave appears to have abandoned the plan, putting the south London property for sale for $7.9 million.

“Opportunity to purchase a pre-licensed cannabis commercial grow operation . . . Application made to Health Canada ready for reviewer. $2 million invested in upgrades,” says an online ad for the property, which also features a house and pool.

Repeated interview requests to Beleave went unanswered.

The move by Beleave to shelve its expansion plan mirrors the actions of many other cannabis companies across Canada as investment in the fledgling sector slows.

One industry observer calls it is a case of “reality catching up with the industry.”

“There’s not as much funding available to pay for construction expansions,” said professor Michael Armstrong of the Goodman School of Business at Brock University.

Armstrong, who previously sounded the alarm on a shortage of legal cannabis, said the issue now largely has been resolved after licensed producers increased output during the spring and summer.

“Supply has caught up with demand, finally,” he said. “So, I think the industry is taking a pause (on expansion).”

Cannabis companies also are shifting resources to prepare for the lucrative market for marijuana-infused food and drinks, products that now are legal, but aren’t expected to hit the markets until January, Armstrong said.

Health Canada, the federal pot regulator, introduced changes to its rules for granting cannabis licenses in the spring that also have affected cannabis company’s ability to raise capital.

Previously, applicants could submit applications with their plans before even breaking ground, but now they must have fully built sites before they’re eligible to apply for a licence to grow, process or sell cannabis.

Share prices of publicly-traded cannabis companies – once among the hottest investments in Canada – have been falling steadily since surging to record highs ahead of Canada’s move to legalize recreational marijuana in October 2018.

After peaking at 43 cents each in January 2018, Beleave shares have tumbled to less than four cents, as of Monday.

Last month, the company appointed Jeannette VanderMarel as the new chief executive. VanderMarel has a track record of success leading licensed producers, previously working as co-chief executive at 48North and co-founder of the the Green Organic Dutchman.