AgriCann is facing a challenging period, marked by significant layoffs and operational setbacks. Despite the recent shareholder update, the company's wholly-owned subsidiary, Newline Ventures Inc., struggles as it sells off existing inventory with a minimal workforce.
A cannabis sector consultant, hired in early April, departed abruptly without offering any strategic recommendations. Additionally, the accountant brought in to replace the former CFO failed to complete the crucial December 2023 Q3 consolidated reporting obligations, although Newline's bookkeeping was updated.
The company remains under a "Cease Trade Order" issued by the BCSC, barring it from public financing. The financial burden of Federal excise stamps and associated compliance costs has severely impacted Newline, leading to a complete shutdown of OCS sales due to missed excise payments.
In an effort to align Newline's overhead with its dwindling resources, further staff reductions and redeployments have been necessary. The board is contemplating funding an outside CPA to meet regulatory obligations, though support remains tenuous.
Following the resignations of the CEO in December and CFO in February, the company has struggled with leadership voids. Major shareholders and board members, including Master Grower Henk Vander Waal and Interim CEO Tim Tombe, continue to seek a sustainable path forward, but the financial outlook remains bleak.
For more information:
AgriCann Solutions
Tel.: (604) 608-1999
agricannsolutions.com