TORONTO, March 29, 2021 /CNW/ - 48North Cannabis Corp.
("48North" or the "Company") (TSXV: NRTH) a vertically integrated
licensed producer focused on manufacturing high-quality cannabis
products and building progressive and thought-provoking brands,
announced today changes designed to streamline its operations and
further improve margins.
48North will immediately cease operations at its "Good:Farm"
outdoor cultivation facility located in Brant County, Ontario. This decision is an important step in
the Company's path to profitability as it increases its focus on
efficient product manufacturing, branding, and distribution. The
decision comes during a significant transitional period for the
industry and a nationwide excess of supply.
"48North has always been a brand-led, consumer-centric licensed
cannabis producer with a mission to provide an expansive portfolio
of high-quality, accessibly-priced products across the country,"
said Charles Vennat, CEO of 48North.
"Today's announcement best positions us to execute this mission, by
restructuring our workforce and redeploying resources towards
commercialization, branding, innovation, and deepening
relationships with retailers and wholesalers. This was a difficult
decision. I want to thank the impacted employees who dedicated so
much to their work with 48North," Charles
Vennat continued.
As a result of the decision, 48North will reduce the size of its
workforce by approximately 20 per cent. The Company is confident
that supply from DelShen, the Company's indoor facility in
Kirkland Lake, Ontario, combined
with strategic partnerships with other licensed producers, will
ensure the quantity and quality of cannabis products required to
meet expected demand. Today's announcement is part of other
ongoing initiatives focused on positioning 48North for sustainable
growth and decreasing the Company's cash use as it accelerates its
pathway to profitability. The Company expects the change will
result in annualized fixed operating costs reductions in excess of
$5 million.
The Company also announced that two of its senior leaders will
be leaving. Kirsten Gauthier, who
has been with the Company since 2017, most recently serving as its
Chief Growth Officer, has made the decision to move on from
48North, effective March
29th. Sean Byrne,
who joined the Company more recently, has also elected to resign
from his role as Chief Financial Officer. Donnacha Rahill will
serve in the role of interim CFO, effective immediately, while a
search is conducted for a permanent replacement. Mr. Byrne has
agreed to remain on hand to provide transitional support to Mr.
Rahill until early April.
"It would be hard to think of another leader at 48North or any
Canadian cannabis company who has brought more in the way of
creativity, vision, and commitment to customers than Kirsten," said
Charles Vennat. "Kirsten's hard work
developing and nurturing brands that meaningfully connect with
consumers will continue to be central to the Company's strategy.
While Sean had a shorter tenure with the Company, we are immensely
grateful for the experience, professionalism, and diligence he
brought to his work with 48North."
"Starting with nothing but our ideas and conviction that the
plant can give people the latitude to live well, we have built an
incredible company. I am grateful to have been a part of it and
will continue to be an enthusiastic supporter from the sidelines,"
said Kirsten Gauthier, Chief Growth
Officer. "Despite making the decision to take a new professional
path, I wish 48North nothing but the best. They have a strong team,
a brand that meaningfully engages with customers, and a focused
strategy to reach profitability," said Sean
Byrne.
The Company makes this announcement from a position of strength
in both market share and brand recognition, with the number one
topical in Ontario, the number one
concentrate in Ontario and
Alberta, and dried flower and
pre-rolls consistently ranked in the top ten in Canada. Today's Good:Farm closure and
workforce allocation better position the Company to capitalize on
this strength as it works towards profitability in the first half
of fiscal 2022 and onward.
About 48North
48North Cannabis Corp. (TSXV: NRTH) is a vertically integrated
cannabis company focused on manufacturing high-quality products and
building progressive, thought-provoking brands. The Company is
developing formulations and manufacturing capabilities for its own
proprietary products, as well as positioning itself to contract
manufacture similar products for third parties. 48North operates
two indoor-licensed cannabis production sites in Ontario. 48North cultivates unique genetics at
its wholly owned subsidiary, DelShen Therapeutics Corp. and
processes cannabis and manufactures next-generation cannabis
products at Good & Green Corp., both licensed producers under
the Cannabis Act.
DISCLAIMER & READER ADVISORY
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release. Certain statements contained in this press release
constitute forward-looking statements or forward-looking
information within the meaning of applicable securities laws. These
statements relate to future events or future performance. The use
of any of the words "could," "intend," "expect," "believe," "will,"
"projected," "estimated" and similar expressions and statements
relating to matters that are not historical facts are intended to
identify forward-looking information and are based on the
management's current beliefs or assumptions as to the outcome and
timing of such future events. Such information includes statements
regarding the expected operating cost reductions savings from the
Good:Farm closing and Company's goal of achieving profitability by
the first half of fiscal 2022. Actual future results may differ
materially. Please refer to the Company's annual information form
dated March 1, 2021 and its other
materials filed on SEDAR for further details concerning the risks
associated with the Company's business. The forward-looking
information contained in this release is made as of the date hereof
and the parties are not obligated to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward-looking information. The foregoing statements
expressly qualify any forward-looking information contained herein.
Public health crises, including the ongoing novel coronavirus
(COVID-19) pandemic, could have significant economic and
geopolitical impacts that may adversely affect the Company's
business, financial condition and/or results of operations.
SOURCE 48North Cannabis Corp.