The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF) is the latest in a growing number of Canadian cannabis firms to slash its staff in an effort to increase profits.

After the end of trading on Tuesday (February 11), the Ontario-based cannabis producer said it is planning to cut a total of 15 percent of positions across the organization.


With the cuts, about a third of its corporate employees will be let go as the firm focuses on “near-term revenue generating opportunities and creating a more nimble and effective corporate structure,” Supreme said in a release. Operational positions will be reduced by about 13 percent.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

“Recent staff reductions were an extremely difficult decision for myself and the Board,” Interim CEO Colin Moore said in a statement, “but I believe them to be necessary to create a more agile, focused and profitable organization for the long-term benefit of all of Supreme Cannabis’ stakeholders.”

The company has taken some significant hits in the open market in 2020. Year-to-date, Supreme is down over 35 percent, opening on Wednesday (February 12) at a price per share of C$0.44. Over the past year, Supreme has slipped dramatically by nearly 77 percent.

Just last week, other major Canadian cannabis players Tilray (NASDAQ:TLRY) and Aurora Cannabis (NYSE:ACB,TSX:ACB) both made 10 percent staff cuts as a part of company-wide restructuring efforts.

Sundial Growers (NASDAQ:SNDL) has streamlined its team as well, confirming late last month that it was cutting less than 10 percent of its workforce at its operations in Alberta in response to difficult market conditions and slow store rollouts, a complaint shared by several cannabis firms in Canada.

Supreme said that, along with the cuts, it’s planning on rationalizing its vendor contracts and support services.

It’s all a part of a broader optimization plan on the part of the firm that was announced in January; it involves rightsizing production and reducing capital expenditures while Supreme focuses on the Canadian market. The beginning of the shift to profitability also came with the departure of previous CEO Navdeep Dhaliwal, who was succeeded by Moore, the former president of Starbucks Canada.

While it targets the industry at home, Supreme plans on dropping its investment in its UK and European cannabis investment platform, Supreme Heights. It will hold onto some of its other international assets with its Truverra business and investment in Lesotho-based medical cannabis producer MG Health.

Supreme will announce its financial results for the second quarter of its fiscal 2020 year after the end of the trading session on Thursday (February 13).

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

One major cannabis analyst gave her top stock pick this week as industry attention continues to converge on the path ahead for the US market.

Also this week, the CEO of Aphria (NASDAQ:APHA,TSX:APHA) gave an update on a critical merger and spoke about who holds the edge in the US in terms of American and Canadian cannabis operators.

Keep reading... Show less

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos Group” or the “Company”) will hold its 2021 First Quarter Earnings Conference Call on Friday, May 7, 2021 at 8:30 a.m. EDT. Cronos Group’s senior management team will discuss the Company’s financial results and will be available for questions from the investment community after prepared remarks.

A live audio webcast of the earnings call will be available on the Company’s website at https://ir.thecronosgroup.com/events-presentations . The webcast of the call will be archived for replay on the Company’s website.

Keep reading... Show less

An Emerging Markets Sponsored Commentary

A report just released in early April confirms that the cannabis beverage sector is thriving. According to this report from industry stalwart, Marijuana Business Daily while sales for vapes, pre-rolls and flower were lackluster, cannabis beverages shined:

Keep reading... Show less

BevCanna Enterprises (CSE:BEV,OTCQQ:BVNNF,FWB:7BC) CEO Marcello Leone shared how the company is scaling up its products to forge partnerships and explore opportunities across Canada, the US and Western Europe. 

“Getting your standard processing license and being fully compliant at a federal level is critical in Canada, and we were successful in getting that done. Now we’re getting ready to launch our Keef line of beverages within the next 45 days,” Leone said. 

As a young company, Leone said BevCanna has only started, but it took a four-pronged approach to make sure that it is a revenue-generating company prepared for the opening of many jurisdictions for CBD-based products.

“We are blessed that we have a beautiful infrastructure of our own, a state-of-the-art bottling facility with a capacity of almost 200 million bottles per annum and a strong balance sheet of $55 million. We are in a strong position to scale and grow this company.”

BevCanna has received a Standard Processing License from Health Canada and is now fully authorized to begin production at its full-service, high-capacity beverage manufacturing facility. The company will begin production of its white-label products, number one US cannabis beverage brand Keef and its in-house beverages through licensed Canadian retailers, positioning the company to fully capitalize on the burgeoning Canadian cannabis-infused beverage sector.

Watch the full interview with CEO Marcello Leone above.

Keep reading... Show less

BioHarvest Sciences (CSE: BHSC) will be presenting at the Benzinga Cleantech Small Cap Conference taking place on April 22, 2021. We invite our shareholders and all interested parties to explore cleantech small cap investment opportunities through two days of networking, dealmaking and discovery.

Sign up to get a free spectator pass for the event: https://www.benzinga.com/events/small-cap/clean-tech/

Keep reading... Show less