Pyxus International (NYSE: PYX) announced this morning that it is focused on transforming its business into that of a consumer brands business operating model thanks in part to the success the firm has seen with its Canadian cannabis subsidiary Figr Brands.
The changes in the firms operating model comes as the company focuses on driving value creation. While its traditional tobacco focus has seen struggles as global tobacco use continues its decline, the company is looking to reinvigorate its operations as a means of continuing and driving value for shareholders. The new operating model will see its current business to consumer and business to business operations in relation to e-liquid, legal cannabis, industrial hemp and CBD operations fall under the Figr Brands subsidiary.
The move is “designed to allow Pyxus to more effectively leverage the entities’ collective strengths to build a global consumer products brand business that can deliver the next generation of THC, CBD and e-liquid consumer products to legal markets around the world.”
The rollout of the cannabis brand Figr has been so successful that the current president of Figr Brands, Harvey Carroll, will be responsible for operating the entire model and will now report directly to Pyxus’ CEO.
Further management changes occurring at the firm include the departure of Executive Chairman, Global Specialty Products Bryan Mazur, following the elimination of the role. Meanwhile, current director Daniel A. Castle will be transitioning to the role of consultant, and Martin R. Wade, III will be transitioning to the role of non-executive chairman for the board.
Pyxus has also indicated that it is currently reviewing all cost structures as well as its global footprint in an effort to improve operational flexibility and efficiencies. The review is being conducted on all operations, which includes the firms tobacco and Figr Brands business units, which is being conducted as a means of positioning the company for long term success in the face of changing consumer trends and demands. The review is expected to be completed by May 1, at which time the company will report on the implementation of what is being called its Global Operations Efficiency Program.
Pyxus International last traded at $4.52 on the NYSE.
Information for this briefing was found via Pyxus International. 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.
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.