The Flowr Corporation said is has completed a significant corporate headcount reduction resulting in more than $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.
The company eliminated 40% of its workforce, largely in senior and middle management, with the goal of flattening its organizational structure and right-sizing SG&A with revenue.
The company has also entered into an agreement for the sale of 17 acres of agricultural property located adjacent to its primary facility known as Flowr Forest, which is not core to the company’s operations. 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.
“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," said Tom Flow, Interim Chief Executive Officer of Flowr.