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SNDL Inc. (NASDAQ:SNDL), which announced its restructuring project on Tuesday, also said that as part of these operational adjustments, it is consolidating its cannabis segments into a single unit under the leadership of Tyler Robson.
The consolidation is intended to enhance efficiency, improve alignment and improve process speed within SNDL’s vertical model.
The restructuring project is expected to reduce corporate overheads and improve the efficiency of its organizational structure while positioning the company for future growth.
The project is expected to deliver over $20 million in annualized cost savings driven primarily by the optimization of corporate overhead spending, including the reduction in 106 full-time employees.
“This restructuring project and segment consolidation are critical steps in our journey towards better capital deployment, improved agility, focus, and profitability, and will free up resources to invest in profitable growth opportunities,” Zachary George, SNDL CEO said. “We are committed to enhancing our organizational effectiveness by streamlining processes while leveraging technology and automation.”
The restructuring will require a one-time investment of $11 million over the next 18 months.
SNDL expects to achieve most of the anticipated annualized savings by mid-2025 while starting to capture some of the opportunities as early as the third quarter of 2024.
As recently highlighted by Benzinga's Javier Hasse, SNDL has been making headlines recently thanks to its "aggressive loan-to-own strategy."
The company recently announced that it has entered into a purchase agreement with cannabis edibles producer Indiva Limited and its subsidiaries. Under that deal, SNDL offered to buy all of the issued and outstanding shares of Indiva and the business and assets of the Indiva Group.
"As explained in a recent newsletter from Viridian Capital Advisors, this approach involves acquiring secured debt from cannabis companies, pressuring them into bankruptcy and then using their debt holdings to bid for ownership of these companies' assets," Hasse wrote. "This method has allowed SNDL to expand its influence and control within the industry, leveraging both its lending arm and operational expertise to take over distressed businesses."
SNDL's shares traded 0.87% higher at $2.2192 per share during the pre-market session on Tuesday morning.
Read Next:
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Posted In: SNDL
