Emerald Health Therapeutics, Inc. has announced an internal reorganization including the firing a part of its workforce and other expenditures. These changes are focused on improving cash flow in the near term and the goal of building long term profitability.
“Although such decisions are difficult, we will evolve our strategy, structure, and capabilities as necessary to be able to capitalize on key trends in the changing cannabis sector,” said Dr. Avtar Dhillon, Executive Chairman of the Board and President of Emerald.
As part of the reorganization, Emerald eliminated approximately 20 staff positions yesterday and has reduced its workforce by approximately 65 staff positions, or 33% of its total workforce, since August 1, 2019. The reductions include the departure of Mr. Rob Hill, CFO, and Mr. Sean Rathbone, COO. Ms. Jenn Hepburn, previously Director, Finance, has been appointed Chief Financial Officer and Corporate Secretary, effective immediately. Dr. Avtar Dhillon, currently President and Chairman of Emerald, will cease to be President and will continue as Executive Chairman. Mr. Riaz Bandali, CEO of Emerald, will continue as President and CEO.
The reorganization is not expected to impact Emerald’s cannabis production or its client service. Management expects that the reorganization will enable Emerald to realize material cost savings beginning in the first quarter of 2020. Emerald remains committed to investing in its innovation and new product development activities.
“These actions and the ongoing adjustment and maturing of our strategy are important to Emerald’s development, growth, and enhancing the value of our business. Apart from streamlining our cost structure, we are aiming to position each element of our business to effectively serve a diverse set of consumer needs in the cannabis market in a complimentary manner and focusing each operation on independently growing cash flow,” said Riaz Bandali, CEO of Emerald.
“For example, since legalization, the largest volume of sales in the recreational cannabis marketplace has been for value-oriented products and our most advanced and largest operating asset, our 50%-owned Pure Sunfarms joint venture, is serving this segment of the market. Our two wholly-owned organic and craft operations are now increasing cultivation toward full production to serve the premium part of the market and we look forward to revenue from these independent and complementary facilities beginning in the first quarter. Our natural health product initiative, with its endocannabinoid-modulating capabilities using non-cannabis products, is expanding distribution of its unique wellness-oriented products. Finally, we are continuing with our new product development efforts aimed at combining scientific understanding and innovation with targeted opportunities in the marketplace.”
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Emerald Health Therapeutics