fbpx
QQQ
-5.06
314.22
-1.64%
DIA
-3.32
316.29
-1.06%
SPY
-4.68
386.08
-1.23%
TLT
-0.90
140.44
-0.64%
GLD
-1.56
162.19
-0.97%

Zenabis Confirms Layoffs, Facility For Sale, Says It Remains "Well-Positioned'

March 13, 2020 2:24 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Zenabis Confirms Layoffs, Facility For Sale, Says It Remains "Well-Positioned'

Zenabis Global Inc. (TSX:ZENA) (OTC:ZBISF) said Wednesday that it has cut its overall workforce by 25%. 

The cannabis company said it reduced the workforce at its Vancouver headquarters by 33%.

The layoffs are part of an effort to increase efficiencies, reduce quarterly expenses and cash outlays by about $2 million, according to Zenabis. 

Zenabis said it doesn't expect the restructuring to affect customer service, manufacturing or overall business activities.

The company is also putting its Delta, British Columbia facility — where growing operations were paused in May 2019 — up for sale. 

“With our collective efforts, we continue to execute on our plan with a focus to achieve operational excellence as well as become cash flow positive in 2020,” CEO Kevin Coft said in a statement. “Various measures are being taken to ensure continued execution of our plans, which include expanding our exports into the European medical cannabis market and a rationalization of our cost structure.”

The company provided an update on some of its export plans.

Zenabis obtained an export license from Health Canada to export cannabis to the European Union in February, according to the company. 

Zenabis projects that it will make its first test shipments to its EU partner this month. 

The company said it is on track to launch a cannabis-infused beverage in the second quarter and is “well-positioned to remain competitive, producing large-scale and high-quality products at a relatively low cost.”

The stock was down 16.19% at 0.044 cents per share at the time of publication Friday.  

Related Links:

Tilray, Aurora Cannabis Layoffs May Signal Industrywide Problem

Over 750 Zenabis CBD Gelcaps Recalled By Health Canada