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WeedMD to report 2019 financials in May, enacts personnel and safety measures in response to the coronavirus

The company reduced compensation for its executives and directors and placed 12% of its staff on temporary leave

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The medical-grade cannabis producer will report on May 27 thanks to an exemption offered by regulators

WeedMD Inc (CVE:WMD) (OTCQX:WDDMF) announced Thursday that due to an exemption offered in the wake of the coronavirus (COVID-19) pandemic, the company will file its fiscal 2019 financial results after market close on May 27.

The medical-grade cannabis producer also issued a coronavirus-related corporate response, which included the placement of 12% of its staff on temporary leave and a reduction in compensation for executives and directors.

“We are working through unprecedented times and, while our cultivation platform and production is fully ramped up, in an effort to maintain prudent business practices during this uncertain period, we recently made the difficult decision to temporarily reduce our workforce,” CEO Angelo Tsebelis said in a statement.

READ: WeedMD kicks off outdoor harvest season at state-of-the-art Strathroy, Ontario property

In December, WeedMD acquired Starseed Holding Inc, a medically-focused, federally licensed cannabis company. The move brings together WeedMD’s cultivation, processing and development with Starseed’s direct-to-consumer medical sales channel. The impacts of the move will begin to show up in the WeedMD’s first quarter financials, the company said. 

“In addition to the post-merger integration initiatives already underway, we have further refined our operations in the areas of oil extraction and production, and streamlined our client services activities,” Tsebelis said. “We also repositioned our sales channels — with medical and adult-use markets outpacing sales in the bulk wholesale market. Our efforts have resulted in consistent sales growth and normalized margins that align with our strategy and we look forward to sharing more in May.”

The company said it has taken taken the following steps to navigate the pandemic:

  • Increasing security screening procedures at all production sites, including visitor bans
  • Mandating work-from-home policies for corporate offices in Toronto and London
  • Implementing staggered and rotating employee shifts and remote work for applicable staff
  • Relocating packaging to its new 50,000-square-foot processing facility in Strathroy, Ontario
  • Installing additional hand-washing and hand-sanitizing stations
  • Encouraging on site social distancing practices during break times
  • Providing resources for compensation and benefits allotment for staff on temporary leave
  • Upgrading telemedicine services via its North Star Wellness program for client services
  • Ensuring personal protection equipment is available on site
  • Donating over 23,000 masks and gloves to Ontario’s healthcare community

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

Quick facts: WeedMD Inc

Price: 0.36 CAD

TSX-V:WMD
Market: TSX-V
Market Cap: $75.69 m
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