Bhang Inc (CSE: BHNG) this morning announced that CEO Scott Van Rixel has stepped down from his role. Taking his place will be Jamie Pearson, who is currently serving as the firms interim president, following Tom Stein’s departure in late October. Van Rixel’s departure is the third executive to leave the company in as many months.
With Van Rixel departing from his role as chief executive, its unclear whether he’ll also be stepping down as Executive Chairman of the Board of Directors for Bhang. Van Rixel however did indicate that Pearson has been promoted to the role of both President and CEO of the firm.
Included within this mornings news release was a letter to shareholders from Pearson, who immediately indicated that the firm will be closing its Miami office in a cost cutting effort, with Bhang relocating its headquarters to that of California. Finished goods are expected to be taken to a full-service fulfillment center, which is expected to cut costs at the capital intensive issuer.
Pearson also indicated that the firm will be focused on reducing expenses while increasing revenues across all verticals that fall into the firms focused categories. As a result, Bhang has closed its CBD brokerage due to market challenges related to falling isolate prices. The issuer remains committed to its CBD CPG strategy however, and is focused on worldwide expansion, particularly in Asia.
Bhang reported its third quarter financials on Friday, reporting revenue of $1.2 million for the period ended September 30, 2019. The firm posted a negative gross margin of $0.2 million however, and a net loss of $8.7 million, while maintaining a cash position of $1.2 million.
Bhang Inc last traded at $0.09 on the Canadian Securities Exchange.
Information for this briefing was found via the Canadian Securities Exchange and Bhang Inc. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.