Ravenquest Biomed (CSE: RQB) has cut staff and reduced expenditures as it becomes the latest public cannabis issuer to attempt to conserve cash as funds run dry. The company announced Friday after hours that they had made “significant reductions in staffing” although specifics were not provided.
The reductions in staffing comes days after the company announced they would be spending $5.0 million in an all-stock transaction to acquire Digigro Software Inc. The reduction is said to include both “on-site workers” to corporate personnel. Office expenditures have also been reduced, and building leases are being renegotiated as the company aims to conserve cash amid a sector-wide cash crunch.
Ravenquest concurrently announced a $1.0 million non-brokered private placement. The financing will see shares sold at a price of $0.10 each, with no warrant attached to each unit. Funds raised will be put towards continuing the operations of the company.
During this time in the industry, it’s the companies that are able to continue that will be standing, as the economic environment catches up. As part of our overall cost-cutting efforts, we had to make some tough decisions about staff rationalization and part ways with some great people in order to improve the viability of our organization.
George Robinson, CEO of Ravenquest Biomed
It is unclear at this time how many people were employed by Ravenquest. The company had $0.7 million in cash as of the latest financial statements.
Ravenquest Biomed last traded at $0.08 on the CSE.
Information for this briefing was found via Sedar and RavenQuest Biomed. 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.
