Gatineau-based marijuana producer says in financial filings that the reduction will result in annualized savings of $30.6 million and is meant to simplify its organizational structure.
Charlie Bowman has been appointed acting president and CEO, effective immediately, replacing Scott Cooper, Gatineau cannabis firm announced Friday.
Hexo Corp. reported a net loss of $690.3 million as it recorded $616 million in one-time impairment charges in its latest quarter as it worked to turn around the cannabis business.
Adam Arviv, who owns about two per cent of Hexo’s shares, says he plans to nominate five new directors – including himself – to the cannabis firm's eight-person board.
Gatineau-based firm became non-compliant when its closing bid price for common shares listed on the Nasdaq dropped below US$1 for 30 consecutive trading days.
Cannabis firm says its plan, which was unveiled last month after its debts mounted and its co-founder left the business, will deliver about $175 million in cash over the next two fiscal years.
Ottawa-based cannabis company says it will shutter properties in Kirkland Lake, Brantford and Stellarton, N.S., in a bid to streamline production.
PricewaterhouseCoopers said its recent review of the Ottawa-based cannabis business showed that Hexo did not maintain effective internal control over financial reporting.
Move comes just two days after co-founder and former chief executive Sebastien St-Louis abruptly departed the Ottawa cannabis company.
Ottawa-based cannabis producer has seen its share price drop by 58 per cent since the beginning of the year.