Cannabis retailer Green Growth Brands Inc. confirmed it has cut jobs Monday, before delaying its second-quarter earnings call by two days.
The Columbus company had opened nearly 200 mall kiosks and stores-within-stores selling its brands of CBD beauty and personal care products last year, while introducing new marijuana brands at licensed dispensaries in Nevada.
But barring yet another investor infusion, Green Growth Brands had less than one month’s cash available at the close of the September quarter, according to an analyst report released this month. That’s the lowest liquidity among several publicly traded cannabis companies, even though most are struggling with cash flow, according to the report from Ello Capital, which itself is based on regulatory filings.
“As part of an operating expense reduction effort, GGB has decreased Columbus home office headcount,” a spokeswoman said via email Monday. “The company thanks all associates for their vision and dedication and wishes them the best.”
It was not immediately clear how many jobs were cut. The company also earlier confirmed to Columbus Business First that it reduced its workforce by less than 5% in September, but has not provided employment numbers.
The company was upbeat about holiday sales, reporting a 42% growth in its customer database and 128,000 retail transactions between Black Friday and Dec. 28. On its website Monday, some best-selling items were labeled as out of stock.
Green Growth Brands rescheduled its investor call for the second quarter ended Dec. 28 at 5 p.m. Wednesday, the conference call operator told those who dialed at the originally scheduled time on Monday.
The company reported a net loss of $30.2 million in the first quarter and $64.3 million for fiscal 2019, according to regulatory filings. The accumulated shareholder deficit as of Sept. 28 was $122.6 million, and the company was negotiating an extension on a $30 million note that was supposed to come due in November.
The company had been raising additional capital from prior investors through convertible debt and issues of shares and warrants. The extended family of retail magnate Jay Schottenstein have been repeat investors, according to regulatory filings.
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