Harvest One Cannabis Inc. HVT HRVOF announced a 20% staff reduction along with its first-quarter results Tuesday.
The Canadian cannabis company reported record first-quarter net revenue of CA$4.1 million ($3.1 million).
Harvest One's cultivation division grew 125% growth quarter-over-quarter, with the medical and nutraceutical divisions growing 42% in the same period, according to the company.
The quarter saw a 9% decline in the company's consumer division. Harvest One posted an adjusted EBITDA loss of CA$3.4 million, a 39% improvement from the same period the year prior.
With the release of the quarterly results, Harvest One announced what it said is "an enhanced strategic plan," affecting several facets of the business and its staff.
Harvest One's Strategic Plan
Aimed at getting the company to profitability, Harvest One plans to engage in the following:
- Highlighting the plan is an approximate 20% reduction in its workforce, affecting all divisions of the company. The move is expected to save roughly 30% on an annual basis.
- In order to adjust for oversupply in the Canadian market, the company's Lucky Lake facility will be repurposed to produce its Dream Water and LivRelief cannabis-infused products, Harvest One said.
- Harvest One is reviewing non-core assets to decrease cultivation exposure, and the company said it plans to redirect its focus and resources to brand development, distribution and production.
- The company is in discussions to divest its 501.% interest in British Columbia's Greenbelt Greenhouse facility and outdoor cultivation location.
Harvest One CEO Grant Froese, discussed the cuts and the cannabis company's plan in a statement.
"In light of recent challenges within the cannabis industry, the company has made some difficult but necessary decisions to improve cash flows and reallocate capital to ensure the long-term growth of the company."
The stock was down 5.7% at 16 cents at the time of publication.
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