A leading Canadian cannabis producer has been forced to engage in cost-saving measures, including letting go of an undisclosed number of staff.
Canadian cannabis producer Canopy Growth (NASDAQ:CGC,TSX:WEED) announced this week that it will let go of an undisclosed number of staff in an attempt to reduce its spending.
Meanwhile, an up-and-coming multi-state operator (MSO) shared its most recent financial results.
Keep reading to find out more cannabis highlights from the past five days.
Cost-cutting measures expected to save C$150 million
Canopy Growth will undergo cost-saving measures to produce between C$100 million and C$150 million in savings. Like many of its competitors, it has been forced to examine its spending and make changes to its plans.
The company said it will reduce its per-gram cultivation costs alongside other streamlining efforts, including the dismissal of an undisclosed number of employees.
"These necessary changes are being implemented to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company," CEO David Klein said.
In its statement, the company thanked those affected by the layoffs for their contributions.
“As a result of these challenging but necessary changes to the organizational structure, dedicated team members will be impacted as the Company operates with a reduced headcount moving forward,” Canopy Growth said.
MSO takes a beating after posting record revenues
Verano fell 6.88 percent for a closing price on Wednesday (April 27) of C$9.48. Since then, the company’s shares have recovered to reach C$10.08 thanks to an uptick of 6.12 percent as of Friday (April 29) at 11:00 a.m. EDT.
The company reported significant upticks in revenue for both Q4 and the full 2021 year. For the entire year, the company reported US$738 million in revenue, boosted in part by its Q4 revenue line of US$211 million.
Despite its revenue increases, the company incurred a net loss of US$15 million.
“Growth across all our key financial metrics was driven organically, from our core operations and by accretive acquisitions we made throughout the year,” George Archos, Verano’s founder and CEO, said.
The company has now expanded into 13 state markets across the US and manages 96 stores.
“We are confident that our efficient capital management, financial stability, signature margin profile, robust retail platform, vertical operations in core markets, and significant cultivation capacity favorably position Verano to take advantage of long-term growth and US capital market opportunities,” Archos added.
Cannabis company news
- Delta 9 Cannabis (TSX:DN,OTCQX:DLTNF)obtained a loan of nearly C$5 million from a shareholder. The deal will carry a 6 percent interest rate per year and is due by July 15, 2025.
- Fire & Flower Holdings (TSX:FAF,OTCQX:FFLWD)shared its financial results for its fourth fiscal quarter of 2021 and the full year. “As we look out to fiscal 2022, we anticipate continued growth in our digital business and driving further revenue opportunities in the US,” Trevor Fencott, CEO of Fire & Flower, told investors.
- Innovative Industrial Properties (NYSE:IIPR)amended its lease agreement with PharmaCann in New York, making it so that US$45 million is now available to fund an industrial cannabis facility. The firm expects its total investment in the facility to be US$108.5 million.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
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