TORONTO, Feb. 11, 2020 /PRNewswire/ – The Supreme Cannabis Company, Inc. (“Supreme Cannabis” or the “Company”) (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) today announced the implementation of a new operating structure, including staff reductions, to drive efficiencies and support long-term, profitable growth.
As previously announced on January 6, 2020, Supreme Cannabis’ board and management team are focused on achieving greater efficiencies and speed to market by rightsizing production, overhead and capital expenditures. At a corporate, operational and international level, the Company’s management team is focusing its businesses and implementing new operating models that prioritize near-term revenue growth in the Canadian market.
“As Interim President and CEO, I committed to take immediate steps to position Supreme Cannabis for long-term success, including rightsizing the Company’s cost structure and focusing our efforts on near-term revenue-generating opportunities,” said Colin Moore, Director and Interim President and CEO. “Recent staff reductions were an extremely difficult decision for myself and the Board, 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 changes we are implementing will empower our people, drive value for our shareholders and ensure that we continue to deliver a consistent and premium product to our consumers.”
Under the new optimized organization, reporting structures at the corporate level are being streamlined and vendor contracts and support services have been rationalized. Focusing the Company on near-term revenue generating opportunities and creating a more nimble and effective corporate structure resulted in a 33% reduction in employee headcount at a corporate level. In addition to ongoing improvements to the Company’s operational efficiencies, Supreme Cannabis has begun implementing a flatter organizational structure and cost-saving measures across its operating assets, including a reduction in the number of positions at the operational level of approximately 13%. Across the Company, the total number of positions have decreased by approximately 15%.
As part of management’s enhanced focus on domestic operations and prioritizing near-term profitability, the Company exited its investment in Supreme Heights, its UK and European cannabis investment platform, by exercising its retractable rights to return all investments back to the Company. Supreme Cannabis will continue to achieve capital-light, international exposure to the global wellness and medical markets through its Truverra business and MG Health Lesotho investment.
As previously announced, the Company will provide its second quarter financial results for the three and six months ended December 31, 2019, as well as an update on its plan for accelerated revenue growth and strategy to support its transition into a premium cannabis CPG company, after markets close on February 13, 2020.
About Supreme Cannabis.
The Supreme Cannabis Company, Inc., (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1), is a global diversified portfolio of distinct cannabis companies, products and brands. Since 2014, the Company has emerged as one of the world’s fastest-growing, premium plant-driven lifestyle companies. Supreme Cannabis’ portfolio of brands caters to diverse consumer experiences, with brands and products that address recreational, wellness, medicinal and new consumer preferences.
The Company’s brand portfolio includes, 7ACRES, Blissco, Truverra, Sugarleaf by 7AC and Khalifa Kush Enterprises Canada. Supreme Cannabis’ brands are backed by a focused suite of world-class operating assets that serve key functions in the value chain, including, scaled cultivation, value-add processing, centralized manufacturing and product testing and R&D. Follow the Company on Instagram, Twitter, Facebook, LinkedIn and YouTube.
We simply grow better.
Certain statements made in this press release may constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information may relate to anticipated events or results including, but not limited to: the ability to drive shareholder value; continuing to deliver a consistent and premium product to consumers; winding down its investment in Supreme Heights; continuing to achieve capital-light international exposure to the global wellness and medical markets; and other statements that are not historical facts. Particularly, information regarding our expectations of future results, targets, performance achievements, prospects or opportunities is forward-looking information. Often, but not always, forward-looking information can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”, “forecast”, “anticipate”, “foresee”, “continue” or the negative of these terms or variations of them or similar terminology. Forward-looking information is current as of the date it is made and is based on reasonable estimates and assumptions made by us at the relevant time in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances. However, we do not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. There can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking information, including, without limitation, the factors discussed in the “Risk Factors” section of the Company’s Annual Information Form dated September 17, 2019 (“AIF”). A copy of the AIF and the Company’s other publicly filed documents can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com. The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information.
SOURCE The Supreme Cannabis Company, Inc.