The Green Organic Dutchman (TSX: TGOD) announced this evening that it has temporarily laid off the majority of its staff at its Valleyfield, Quebec facility following a decision to postpone operations in the province until later this year. The move was declared to be a cost cutting initiative in the face of changing market conditions.
It’s not currently clear how many people exactly have been cut from the Valleyfield team, with the company referring to the amount of employees as simply being a “majority.” The justification is that the company is able to produce larger quantities of product at its Ontario facility located in Ancaster, while saving costs and capital.
The Ancaster facility is said to not be impacted by the decision, and that the facility continues to grow and harvest organic cannabis for the firms recreational and medical markets. The move is also said to not hinder the timeline for the firms 2.0 products to hit store shelves. Teas and vapes are reportedly still on track to launch at the end of April.
Staff at the Ancaster facility have been impacted by the cost cutting initiatives overall however, as the company has imposed a 20% wage cut on the remaining salaried team members. Certain, undisclosed, executives themselves will also be taking a 30% wage cut to further reduce costs for the cash starved firm. TGOD has also placed a freeze on non-essential hirings and consultancy work, while looking for additional cost saving opportunities with current suppliers.
TGOD reported cash and cash equivalents of $27.5 million as of December 31, 2019, while also reporting over $52.0 million in outstanding accounts payable.
The Green Organic Dutchman last traded at $0.33 on the TSX.
Information for this briefing was found via Sedar and The Green Organic Dutchman. 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.
