· Corporate positions decreased by approximately 33% and operational positions decreased by approximately 13%
· Total number of positions decreased by approximately 15% across the Company
· New structure focuses the business on accelerating revenue growth in the Canadian market
TORONTO, Feb. 11, 2020 /CNW/ – The Supreme Cannabis Company, Inc. (“Supreme Cannabis” or the “Company”) (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) today announced the implementation of a new operating structure, including staff reductions, to drive efficiencies and support long-term, profitable growth.
As previously announced on January 6, 2020, Supreme Cannabis’ board and management team are focused on achieving greater efficiencies and speed to market by rightsizing production, overhead and capital expenditures. At a corporate, operational and international level, the Company’s management team is focusing its businesses and implementing new operating models that prioritize near-term revenue growth in the Canadian market.
“As Interim President and CEO, I committed to taking immediate steps to position Supreme Cannabis for long-term success, including rightsizing the Company’s cost structure and focusing our efforts on near-term revenue-generating opportunities,” said Colin Moore, Director and Interim President and CEO. “Recent staff reductions were an extremely difficult decision for myself and the Board, but I believe them to be necessary to create a more agile, focused and profitable organization for the long-term benefit of all of Supreme Cannabis stakeholders. The changes we are implementing will empower our people, drive value for our shareholders and ensure that we continue to deliver a consistent and premium product to our consumers.”
Under the new optimized organization, reporting structures at the corporate level are being streamlined and vendor contracts and support services have been rationalized. Focusing the Company on near-term revenue-generating opportunities and creating a more nimble and effective corporate structure resulted in a 33% reduction in employee headcount at a corporate level. In addition to ongoing improvements to the Company’s operational efficiencies, Supreme Cannabis has begun implementing a flatter organizational structure and cost-saving measures across its operating assets, including a reduction in the number of positions at the operational level of approximately 13%. Across the Company, the total number of positions has decreased by approximately 15%.
As part of management’s enhanced focus on domestic operations and prioritizing near-term profitability, the Company exited its investment in Supreme Heights, its UK and European cannabis investment platform, by exercising its retractable rights to return all investments back to the Company. Supreme Cannabis will continue to achieve capital-light, international exposure to the global wellness and medical markets through its Truverra business and MG Health Lesotho investment.
As previously announced, the Company will provide its second-quarter financial results for the three and six months ended December 31, 2019, as well as an update on its plan for accelerated revenue growth and strategy to support its transition into a premium cannabis CPG company, after markets close on February 13, 2020.
About Supreme Cannabis.
The Supreme Cannabis Company, Inc., (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1), is a globally diversified portfolio of distinct cannabis companies, products, and brands. Since 2014, the Company has emerged as one of the world’s fastest-growing, premium plant-driven lifestyle companies. Supreme Cannabis’ portfolio of brands caters to diverse consumer experiences, with brands and products that address recreational, wellness, medicinal and new consumer preferences.
The Company’s brand portfolio includes 7ACRES, Blissco, Truverra, Sugarleaf by 7AC and Khalifa Kush Enterprises Canada. Supreme Cannabis brands are backed by a focused suite of world-class operating assets that serve key functions in the value chain, including, scaled cultivation, value-add processing, centralized manufacturing, and product testing and R&D. Follow the Company on Instagram, Twitter, Facebook, LinkedIn, and YouTube.