Canada – FLOWR: 40% of jobs axed

The press release

Highlights:

  • Headcount reduction by 40% resulting in over $4m in cost savings per year
  • Agreement to sell non-core asset for aggregate gross proceeds of $3.4m

TORONTO, June 23, 2022 (GLOBE NEWSWIRE) — The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) (“Flowr” or the “Company”) herein announces the completion of a significant corporate headcount reduction resulting in over $4m in cost savings per year as well as an agreement to sell a non-core asset for aggregate gross proceeds of $3.4m.

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 Chief Executive Officer of Flowr commented, “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.”

https://www.globenewswire.com/news-release/2022/06/24/2468525/0/en/The-Flowr-Corporation-Announces-Headcount-Reduction-and-Agreement-to-Sell-Non-Core-Asset.html

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