Canadian cannabis producer BZAM has slashed another 90 employees as part of its merger with The Green Organic Dutchman Holdings (TGOD), which closed earlier this year.
The integration plan has resulted in the loss of 275 total positions.
In its latest update, BZAM said the plan since its October 2022 merger with TGOD has focused on:
- Eliminating redundant facilities.
- Realigning the company’s production activities across remaining sites.
- Reducing selling, general and administrative (SG&A) expenses to achieve the broader goal of positive earnings before interest, taxes, depreciation and amortization (EBITDA).
In the update, BZAM said it anticipates third-quarter net revenue of at least 20.3 million Canadian dollars ($16 million).
BZAM said it has reduced fixed operating overhead expenses by approximately CA$8 million annually since the merger and cut SG&A costs by roughly 40% on an annual run rate basis.
“It is no secret that the Canadian cannabis industry needs to work through a period of consolidation,” CEO Matt Milich said in a statement.
“While not an easy road, we are proud to be one of the companies leading the charge – and demonstrating what is possible when two consumer favourites (sic) combine, focus on sales and our customers, while shedding costs and streamlining operations.”
Since the merger, the company:
- Completed the disposal of its Puslinch, Ontario, facility on June 30.
- Completed the sale of a facility in Midway, British Columbia, on Aug. 4.
- Reached a deal to sell another facility in Maple Ridge, B.C., for CA$3.8 million. The closing is expected to occur by the end of this month.
BZAM also said it listed another facility in Edmonton, Alberta, for CA$10.8 million.
After the Edmonton facility is sold, the company said it expects to reduce the term portion of its debt by up to CA$900,000, decreasing its interest expenses by at least CA$500,000 per year.
The focus of the business is on improving margins and reducing costs, according to the update.