Canadian cannabis producer The Flowr Corp. eliminated 40% of its workforce and sold a large parcel of land in a bid to save cash.
The struggling Toronto-headquartered company didn’t say in its Friday announcement how many workers were fired and did not reply to MJBizDaily queries.
Flowr said in a news release that the reduction in its headcount would result in more than 4 million Canadian dollars ($3.1 million) in cost savings per year.
In a related move, Flowr said it sold a 17-acre parcel of land for CA$3.4 million, the proceeds of which will “provide the Company with increased operating capital.”
The land sale is expected to close in mid-August.
“These cost cutting measures and sale of non-core assets are vital to getting the company to profitability,” interim CEO Tom Flow said in a statement.
“Flowr is a brand synonymous with quality and we continue to believe that our model to provide premium cannabis products to the market while reducing overall costs will lead to success.”
Flowr has experienced C-suite turnover in recent months.
Flow, who is Flowr’s founder, was appointed interim chief executive in March after director and CEO Darryl Brooker left “to pursue other opportunities.”
It’s the third time Flow has assumed the CEO post in some capacity.
John Chou is still listed as Flowr’s chief financial officer on the company’s website, but an auto-reply email from Chou said Mike Willets has assumed the role of interim CFO.
Flowr has been in cost-cutting mode for some time.
In 2020, the company cut its workforce by 25% to conserve capital.
The company also pulled out of some international markets in recent years.
Earlier this year, Flowr sold subsidiary Holigen Holdings, which owned two cultivation facilities in Portugal.
The sale was to United Kingdom-based medical cannabis company Akanda Corp. in a deal worth roughly CA$35 million.
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One year ago, Flowr pulled out of noncore markets – including Australia, Spain and Uruguay – as part of a strategic review intended to put the business on firmer financial footing.
Flowr has lost CA$274.8 million since 2017.
Flowr trades on the TSX Venture Exchange as FLWR.