Vivo Cannabis (TSX: VIVO) is the latest cannabis issuer to “streamline operations” via significant layoffs at its operations. The company announced this morning that approximately 18% of its staff will be cut as the company looks to reduce costs.
The majority of the cuts are said to come from the firms Napanee, Ontario operations. The facility itself will see a realignment, with the operation now focused on low cost production via airhouse-grown product and the extraction and manufacturing of 2.0 concentrates. Other activities such as packaging and distribution are expected to take place at the Canna Farms facility in Hope, BC.
Furthermore, non-core assets, while not identified specifically, are to be sold off to provide further funding to the company while capital expenditures will be stopped with all major projects now complete. THe actions are said to assist in targeting positive adjusted EBITDA in the first half of 2021.
Finally, to further reduce costs Dan Laflamme will be stepping down as President of Canna Farms and as a director. Ray Laflamme, co-founder of Canna Farms will be taking his place on an interim basis.
The announcement follows the news last week that a $5.1 million financing was cancelled over alleged “unusual trading activity.”
Vivo Cannabis last traded at $0.14 on the TSX.
Information for this briefing was found via Sedar and Vivo Cannabis. 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.
