Canopy Rivers announces changes to its operations

Canopy Rivers announces changes to its operations

The cannabis company is shifting things around as it focuses more on long-term goals

Canopy Rivers Inc. continues to make changes to its operations to achieve long-term shareholder value. These changes are focused on cost reduction and cash generation through the optimization of the cannabis company’s structure and are designed to streamline operations. They come as part of the company’s new strategy as a result of its operational review of businesses.

The first change will focus on adjusting the portion of the company’s revenue that goes to compensation, marketing expenses and general corporate expenses. Canopy Rivers is planning a reduction in these aspects as well as a possible headcount reduction. As the company recently started its fiscal year 2021, which will end on March 21, 2021, the focus will be fixed on generating positive cash flow from operations. Canopy Rivers company will also make sure that the returns on existing assets are completely maximized.

Another announcement made by Canopy is the continuation of the previously announced normal course issuer bid with the intention of repurchasing subordinated voting shares. As it was stated, the company can buy back up to 10% of the subordinated voting shares existing in the public float. “We believe that sharpening our focus on financial discipline, operational excellence, and opportunistic capital deployment on our investment pipeline will yield long-term results for shareholders,” explains Narbe Alexandrian, Canopy Rivers President and CEO. “In addition, the strategic utilization of our NCIB could be an important tool to provide attractive returns to shareholders.”

Alexandrian added that the company has a good amount of cash on hand due to prior capital raises and returns from some investments, which are enough for the company to advance in its strategy. “These unprecedented times, while difficult, are revealing investment opportunities at attractive valuations, and we intend to actively execute on our investment pipeline during this time. Our expectation is that our efforts to achieve positive operational cash flow, conserve and deploy capital on a strategic basis, and focus on our core business objectives will better align our share price with our underlying net asset value,” he asserts.

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