Cannabis Professional’s daily roundup of industry news. View archive here.
CannTrust Holdings to temporarily cut work force
CannTrust Holdings Inc will temporarily cut its work force by about a quarter, or roughly 140 people, the company said on Thursday, seeking to recoup losses after Health Canada suspended its license to grow and sell cannabis. The company expects the cut to save about $400,000 each month, but faces severance costs of up to $800,000 if the employees are not recalled within 35 weeks, it said in a statement.
The Canadian health regulator cancelled CannTrust’s license in September, months after finding it was illegally cultivating pot. Since the June discovery, the company has fired its chief executive, disclosed a regulatory investigation, and said its results may have to be restated.
The findings of an independent investigation panel were provided to Health Canada and the company’s board, it said in the statement. The investigation found no evidence that any remaining board members were aware of, or engaged in, any non-compliance issues, the panel chairman, Mark Dawber, said. Based on the findings, the company is remedying its lack of compliance with measures such as departures from its leadership team, interim CEO Robert Marcovitch said.
The company said it gave a detailed remediation plan to Health Canada on Monday, to restore compliance. Last week, it said it would destroy about $12-million worth of plants and about $65-million worth of inventory.
– Reuters
Choom appoints Corey Gillon as CEO
Vancouver-based Choom announced Friday that it has appointed Corey Gillon as the company’s new chief executive officer, effective Dec. 1, 2019. In addition to his executive management role, Mr. Gillon will be appointed to the board of directors. Chris Bogart, Choom’s current CEO, will assume the role of president. Choom says the addition to its senior management team “is a major component of the company’s strategic initiative to become a nation-wide cannabis retail organization.”
Mr. Gillon has held executive leadership roles at WalMart and fashion retailer Aritzia, and is a graduate of the Harvard Business School from their executive leadership program.
Choom also announced that COO Michael Forbes will be stepping down from the company as Mr. Gillon assumes the day-to-day responsibilities for operations.
- Staff
Fire & Flower receives retail licence in Banff
Fire & Flower Inc. said Friday it has received a cannabis retail store licence from the Alberta Gaming, Liquor and Cannabis Commission for a location in Banff, Alberta. The company said it expects the Banff store to be open and selling cannabis during the week of Nov. 11.
“We are excited to be opening another location in the Bow Valley and in the international tourism destination of Banff, Alberta,” shared Trevor Fencott, Fire & Flower’s Chief Executive Officer. “The Banff location will showcase the Fire & Flower retail experience to customers from around the globe and for many will be their first experience with the legal, federally regulated Canadian adult-use market. We look forward to welcoming tourists as well as members of the local community to Fire & Flower.”
Fire & Flower now owns or has interest in 33 cannabis retail store licences across the provinces of Alberta, Saskatchewan, Manitoba, Ontario and the Yukon territory. The company says it expects to have 45 cannabis retail store licences by the end of its fiscal year.
- Staff