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by Stockwatch Business Reporter
The Canadian Securities Exchange Composite Index dropped 2.50 points to 421.95 Wednesday. Following a long chain of cannabis companies that have been trying to cut costs, Emerald Health Therapeutics Inc. (EMH: $0.78) announced today that it had cut about 33 per cent of its work force since Aug. 1. The cutback, which is part of a broader management shakeup, included 20 jobs being eliminated yesterday; 45 more jobs had been eliminated between Aug. 1 and today. The shakeup to management included the departure of chief financial officer Rob Hill and chief operating officer Sean Rathbone. To replace Mr. Hill, the company's previous director of finance, Jenn Hepburn, has been appointed CFO. Dr. Avtar Dhillon will no longer be president; he will continue as executive chairman. Emerald Health's chief executive officer, Riaz Bandali, will now be both CEO and president.
Management expects to begin saving money from these cuts in the first quarter of 2020. Half way through 2019, Emerald had negative working capital of $4.2-million. Like many of the companies that are now reducing their staff, Emerald has fallen precipitously in 2019. The stock hit a high of $4.66 in March but has since dwindled to today's closing price of 78 cents. The company lost just $500,000 in Q2; it would have been much worse if not for Emerald's 50-per-cent-owned joint venture, Pure Sunfarms. The JV contributed net income of $14.4-million to Emerald's second quarter results (Village Farms International Inc. (VFF: $10.34) owns the other half of the JV).
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