- 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 take 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 have 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 global 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.
We simply grow better.
Forward-Looking Information.
Certain statements made in this press release may constitute
"forward-looking information" within the meaning of applicable
securities laws. Forward-looking information may relate to
anticipated events or results including, but not limited to: the
ability to drive shareholder value; continuing to deliver a
consistent and premium product to consumers; winding down its
investment in Supreme Heights; continuing to achieve capital-light
international exposure to the global wellness and medical
markets; and other statements that are not historical facts.
Particularly, information regarding our expectations of future
results, targets, performance achievements, prospects or
opportunities is forward-looking information. Often, but not
always, forward-looking information can be identified by the use of
forward-looking terminology such as "may", "will", "expect",
"believe", "estimate", "plan", "could", "should", "would",
"outlook", "forecast", "anticipate", "foresee", "continue" or the
negative of these terms or variations of them or similar
terminology. Forward-looking information is current as of the date
it is made and is based on reasonable estimates and assumptions
made by us at the relevant time in light of our experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors that we believe are
appropriate and reasonable in the circumstances. However, we do not
undertake to update any such forward-looking information whether as
a result of new information, future events or otherwise, except as
required under applicable securities laws in Canada. There can be no assurance that such
estimates and assumptions will prove to be correct. Many factors
could cause our actual results, level of activity, performance or
achievements or future events or developments to differ materially
from those expressed or implied by the forward-looking information,
including, without limitation, the factors discussed in the "Risk
Factors" section of the Company's Annual Information Form dated
September 17, 2019 ("AIF"). A copy of
the AIF and the Company's other publicly filed documents can be
accessed under the Company's profile on the System for Electronic
Document Analysis and Retrieval ("SEDAR") at www.sedar.com. The
Company cautions that the list of risk factors and uncertainties
described in the AIF is not exhaustive and other factors could also
adversely affect its results. Readers are urged to consider the
risks, uncertainties and assumptions carefully in evaluating the
forward-looking information and are cautioned not to place undue
reliance on such information.
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SOURCE The Supreme Cannabis Company, Inc.