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Be the first with the news that moves the market- Lift & Co (TSXV:LIFT) has announced that it will lay off some employees and pause some operations in its attempt to weather the COVID-19 storm
- The decisions were made to preserve cash and long-term shareholder value
- Lift & Co’s profitable Lift & Co Expo and CannSell lines of business will remain unaffected
- The company intends to rehire those employees laid off as a result of the disruptions
- Lift & Co (LIFT) is down 14.29 per cent, with shares currently trading at 3 cents and a market cap of C$2.11 million
Lift & Co (TSXV:LIFT) will lay off some employees and pause some operations in its attempt to weather the COVID-19 storm.
The technology company is dedicated to modernizing the cannabis industry through its unique online platform and popular events.
It says that the strategic decisions were made to preserve both cash and long-term shareholder value.
However, its more profitable lines of business, such as the Lift & Co Expo and CannSell, will remain operational.
Matei Olaru, CEO of Lift & Co, acknowledged the difficulty of the decisions.
“We are incredibly saddened by these necessary and difficult actions. Our team members have been tirelessly dedicated to driving shareholder value and building Cohesion and this pandemic and its impact on our operations is a shock to us all.
“We are doing everything possible to preserve jobs long term at Lift & Co as we commit to preserving shareholder value and profitably servicing our valued clients during these uncertain times,” he said.
The company said that it intends to rehire those staff members affected by the layoffs.
In early February this year, Lift & Co released its third quarter financial results for fiscal 2020. The company reported an 11 per cent increase in revenue to C$926,429 for the three-month period ending December 31, 2019.
“We are proud to announce strong results from our third quarter fiscal 2020 and year-to-date, with growth across all Lift & Co business lines.
“We are at the beginning of a pivotal calendar year for brands in the cannabis industry, within which Lift & Co is establishing a leadership position, particularly with its Cohesion and CannSell platforms,” Matei said at the time.
However, COVID-19 concerns aside, cannabis companies across North America have been having a rough time so far this year.
Almost all publicly traded businesses in the sector have seen gradual yet worrying declines in valuation, due mostly to a critically overvalued market.
As the Cannabis 2.0 phase comes to fruition, many markets are realising an overestimation in the demand for cannabis products.
Lift & Co (LIFT) is down 14.29 per cent, with shares trading for 3 cents at 1:46pm EST.
