- The Flowr Corporation (TSXV:FLWR) has “restructured” 25 per cent of its global workforce in the pursuit of positive cash flow
- The tighter company expects to save more than C$6 million annually in headcount expenses
- More resources will be focused on its Canadian dried flower market to maximise current sales momentum
- The Flowr Corporation (FLWR) is currently steady at $0.46 per share, with a market cap of $54.66 million
The Flowr Corporation (TSXV:FLWR) has “restructured” 25 per cent of its global workforce in the pursuit of positive cash flow.
The outbreak of the COVID-19 virus has added to the woes of an already struggling cannabis industry. An over-hyped market has resulted in failing expectations and the implementation of some drastic survival measures.
Flowr says that new operational program will save more than C$6 million in annual headcount expenses alone. The decision comes as the company makes moves to tighten the timeline towards cash flow positivity in the second half of 2020.
Vinay Tolia, CEO of The Flowr Corporation, said that the changes were not taken lightly.
“The changes we announced today were part of an ongoing comprehensive review of our operations to reduce costs, focus on the highest value priorities and accelerate cash flow generation, in addition to some of the anticipated macro-economic headwinds stemming from COVID-19.
“The resulting company will be a leaner, more efficient organization,” he added.
Flowr also announced its intentions to focus more resources on the Canadian dried flower market. The company has reported positive sales momentum, particularly with its BC Pink Kush products.
“Our fundamental thesis that consumers demand quality dried flower has been proven correct as evidenced by heavy demand for our flagship strain, BC Pink Kush,” continued Vinay.
“We also look forward to the release of our newest high THC strains BC Louis XIII and BC Tahoe OG in the coming months.”
Construction of Flowr’s R&D facility, pursuant to a strategic agreement with Hawthorne, is substantially complete. The company plans to seek licensing approval for the 45,000 square foot site in the second quarter of this year.
The Flowr Corporation (FLWR) is currently steady at $0.46 per share, as of 9:35am EST.