TGOD stock is trading down today after The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF) announced several changes at an executive level in a bid to streamline its leadership team.
Changes at the Top
The company announced on Wednesday that two executives are to depart from the Toronto-based cannabis producer. TGOD’s president, Csaba Reider, will be leaving the company with duties to be filled by CEO Brian Athaide. Additionally, Mike Gibbons, Vice President of Sales, will also leave the organization to be replaced by Robert Gora, currently VP of Medical Commercialization, in a newly consolidated VP of National Sales role. TGOD stock has dropped about 2.5% since the changes were announced.
“The changes we announce today are part of a comprehensive review of our operations to reduce costs and improve cash flow. This will result in significant G&A savings and a leaner more efficient organization. We are also very focused on ramping up production, expanding our product portfolio with innovative organic products and gaining market share across the country,” said Brian Athaide in a statement released Wednesday. TGOD stock is currently trading for $2.68 in Toronto.
TGOD Stock Still Feeling the Pinch
The move to streamline operations at the highest level comes after The Green Organic Dutchman’s financial position was thrust into the spotlight towards the end of last year. The disappointing launch of the Canadian cannabis market has weighed on the firm’s ability to finance the ongoing construction of its Ancaster, Ontario sight, as well as fulfilling general operating expenses. In November, TGOD announced that it would raise C$22 million by way of a public offering to meet those costs; however, TGOD shares have tanked 75% since May as the struggles carry on.
Also in November, the company announced that it had reached a sale-leaseback agreement on its Ancaster facility, as well as a construction mortgage loan and a term sheet agreed with an investment fund. With the cash-strapped pot producer keenly pursuing such a turnaround effort, will 2020 be a better year for TGOD stock?
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