Canopy Rivers Announces Headcount Reduction, Reaffirms Share Buybacks

Canopy Rivers (TSX: RIV) announced this morning that it is conducting a series of operational changes to its organization, which includes a headcount reduction. However, the company would like investors to know that, rest assured, Canopy Rivers still intends to continue its previously announced share buybacks throughout the fiscal year.

It’s unclear just how many employees the operational changes will impact. As of the last report on July 16, 2019, Canopy Rivers identified that it employed 16 individuals, however several changes to the company have occurred in the time since, including certain acquisitions.

In addition to reducing employee headcount, the cuts will also be done to the same degree to directors compensation, marketing expenses, and general corporate expenses, with Rivers having a target of a minimum of 35% from the firms fiscal 2020 operating cash flows on a normalized basis. Rivers is also focused on maximizing returns on existing assets, and generational cash flow positive operations for fiscal 2021.

Canopy Rivers also “reaffirmed its intention” to conduct a normal course issuer bid (also known as share buybacks) for up to 10% of the subordinated voting shares in the public float as per its previous announcement.

Canopy Rivers last traded at $1.41 on the TSX.

Information for this briefing was found via Sedar and Canopy Rivers. The author has no securities or 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.

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