- The Flowr Corporation (FLWR) is cutting costs as it implements recommendations of its strategic review committee on corporate restructuring
- The company has already begun the process of “rightsizing headcount” for immediate cost reductions
- It aims to reduce annual operating expenses by approximately C$2 million
- The Flowr Corporation has disposed of non-core licenses and operations in offshore jurisdictions
- The Flowr Corporation is down 1.59 per cent on the day, with shares of the company trading at $0.31 at 12:27 pm ET
The Flowr Corporation (FLWR) is cutting costs as it implements recommendations of its strategic review committee on corporate restructuring.
The company has already begun the process of “rightsizing headcount” for immediate cost reductions.
It aims to reduce annual operating expenses by approximately C$2 million, excluding restructuring charges.
The Flowr Corporation has disposed of non-core licenses and operations in offshore jurisdictions.
The company expects approximately $5 million from selling off multiple non-core assets, including approximately four acres of industrial land located in Kelowna, British Columbia.
The Flowr Corporation expects to focus on “being an ultra-premium and premium dry flower producer in Canada and the E.U.”
“Since the start of the new year, the Strategic Review Committee has worked hard to make Flowr a leaner and more focused Company. Within ninety days, the Company has made the decision to dispose of non-core assets and has been very creative in reducing cash outlays and started to right-size its headcount, all with a view to improving its balance sheet and driving towards profitability. This is hard work that we hope will pay off for all shareholders in the long-term,” said Flowr Corporation Chair of the Board of Directors Steve Klein.
The company’s strategic review committee was appointed by the board of directors with a view to reduce corporate overhead and headcount, dispose of non-core assets, including duplicative licenses in the E.U., and implement further cost savings strategies with a view to preserving cash and cash equivalents.
The Flowr Corporation is down 1.59 per cent on the day, with shares of the company trading at $0.31 at 12:27 pm ET.