A Key Message from the New CEO, Jarrett Malnarick
VANCOUVER, BC / ACCESSWIRE / January 8, 2020 / Experion Holdings Ltd. (the “Corporation” or “Experion“) (TSXV:EXP)(OTCQB:EXPFF)(FRANKFURT:MB31) Given the recent leadership change announced on January 6, 2020, Experion Holdings Ltd.’s newly appointed CEO and Director, Jarret Malnarick, is pleased to share some immediate strategy and objectives going forward for the Company
As the Canadian cannabis industry continues to be challenged with inflated financial forecasts, oversupply of low-quality product and delayed licensing of retail outlets to drive sales, investors and financers have lost confidence in the cannabis sector making it difficult to obtain favorable business valuations and to raise capital. During this time, cannabis companies must continue to evolve to address the changing conditions of the industry by becoming laser focused, leverage all assets at its disposal and carve a swift path to profitability. Key strategic objectives must center around revenue generation and rightsizing cannabis companies through cost restructuring.
The following is a summary of Experion’s efforts to reduce costs while continuing to grow revenue over the quarter:
Cost Reduction Measures
- Reduce office expenditures including closures of certain offices deemed unnecessary
- Terminate roles considered redundant
- Hibernate the clinical trial and related research; to be further reviewed when the market environment improves
- Renegotiate consulting and services fees
- Optimize business processes and functions
- Accumulation of the above actions will result in a 30% reduction (minimum) in SG&A annually
Revenue Growth Initiatives
- Increase current facility’s cultivation footprint by 20% by mid 2020 with minimal capital expenditure
- Unlock increased processing space with Health Canada which doubles manufacturing capacity by mid 2020 (renovations completed in FY2019)
- Improve cultivation capacity with quality grow partners
- Become an efficient premium Consumer Packaging Goods processor
- Open additional distribution channels across Canada
- Increase product diversity by offering additional strains and introducing pre-rolls
- Explore M&A opportunities with another licensed producer to achieve increased cultivation and further economies of scale
Despite a difficult market and some early disappointments with certain sector leaders, there remains a tremendous opportunity for cannabis companies on the path to profitable growth. This is the future that we see for Experion as it continues to develop strong brands (Citizen Stash and Kanabe) backed by premium Consumer Packaged Goods distributed across the Canadian market generating high margin revenue. This strategy will ultimately build a foundation for long term profits.
In the coming weeks, we will be publishing an updated corporate presentation as well as an investor update.
Jarrett Malnarich, CEO
About Experion Holdings Ltd.
Experion Holdings Ltd. is the parent company of Experion Biotechnologies Inc., a Health Canada licensed cultivator and processor of Cannabis, based in Mission, BC.
Experion Holdings Ltd. is invested in a portfolio of products to address a wide spectrum of consumer needs’ including Medical, Adult-use, and Wellness and Therapeutic products.
Experion trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “EXP” on the OTCQB Venture under the symbol “EXPFF” and on the Frankfurt Stock Exchange under the symbol “MB31”
For further information, please visit the Company’s website www.experionwellness.com or join our Global Investor Forum on 8020 http://connects.company/ExperionEXP where you can read all press releases or contact Investor Relations, Email: [email protected]
This press release contains forward-looking information within the meaning of Canadian securities laws. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct.
Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, forecast, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: the state of the financial markets for the Company’s equity securities; recent market volatility; the Company’s ability to raise the necessary capital or to be fully able to implement its business strategies; the risks identified in the Filing Statement, and other risks and factors that the Company is unaware of at this time. The reader is referred to the Filing Statement dated September 25, 2017 and/or the most recent annual and interim Management’s Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through the Company page on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies ofthe TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Experion Holdings Ltd.