The Flowr Corp Fires 40% Of Its Workforce And Agrees To Sell Non-Core Asset As Cost Saving Measures

The Flowr Corporation FLWPF (TSX.V:FLWR) completed a significant corporate headcount reduction resulting in over $4 million in cost savings per year as well as an agreement to sell a non-core asset for aggregate gross proceeds of $3.4 million.

Headcount Reduction

The company has completed a headcount reduction necessary in order to flatten its organizational structure and right-size SG&A with revenue. The company has eliminated 40% of its workforce, largely in senior and middle management, resulting in an anticipated annual savings of over $4m.

Agreement to Sell Flowr Forest

The company has entered into an agreement for the sale of 17 acres of agricultural property located adjacent to its primary facility known as “Flowr Forest” for aggregate gross proceeds of $3.4m. Flowr Forest is not core to the company’s operations and the proceeds of the sale will provide the company with increased operating capital. Closing of the sale is anticipated for mid-August and is subject to certain conditions, including the completion of a satisfactory due diligence review by the purchaser.

Tom Flow, interim CEO of Flowr stated, “These cost cutting measures and sale of non-core assets are vital to getting the company to profitability. 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.”

Photo by Esteban Lopez on Unsplash

Related News

The Flowr Corp. Reports Slight Drop In Revenue For Q1 2022

The Flowr Corp. Revenue Grows 64% In 2021, Achieves Record Quarterly Revenue Thanks To This

Akanda Completes Acquisition Of Holigen, Strengthening Position In EMEA Region

 

Posted In: Tom FlowCannabisNewsMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.