- Delta 9 (DN) has announced a plan to become positive from cash flow from operations in 2023
- The strategic plan involves streamlining cultivation operations, right-sizing capacity at its Winnipeg-based cultivation facilities, and reducing public company and investor-relations costs
- The Board of Directors and executive team have also agreed to reduce their compensation by $3-$4 million
- Delta 9 Cannabis is a vertically-integrated cannabis company operating through medical and recreational sales channels
- Delta 9 (DN) opened with a gain of 15.38 per cent, trading at $0.075 per share
Delta 9 (DN) has announced a plan to become positive from cash flow from operations in 2023.
The strategic plan involves cost reductions through streamlining its cultivation operations, right-sizing capacity at its Winnipeg-based cultivation facilities, as well as reducing public company and investor-relations costs.
Cultivation capacity at Delta 9’s Winnipeg-based cultivation facilities will be cut by 40 per cent, including a temporary layoff of approximately 40 staff. Employees will continue to receive benefits and have access to other transitional services.
The Board of Directors and executive team have also agreed to reduce their compensation by $3-$4 million in pursuit of the goal of profitable growth.
Retail operations will remain unaffected.
“Delta 9’s retail operations have achieved profitability, and positive operating cash flows over the past several years,” said Mark Jonker, COO of Delta 9. “Our cultivation and wholesale cannabis operations have struggled with profitability due to continued price and margin compression in the Canadian cannabis market. Our decision is designed to significantly reduce costs and to chart a near-term path to becoming positive from cash flow from operations.”
Delta 9 Cannabis is a vertically-integrated cannabis company operating through medical and recreational sales channels. Its licensed production originates from an 80,000 sq. ft. facility in Winnipeg, Manitoba.
Delta 9 (DN) opened with a gain of 15.38 per cent, trading at $0.075 per share.