Benchmark Announces Reduction of the Workforce in Potanicals Green Growers Operations and Review of Their Business Strategies
Vancouver, British Columbia--(Newsfile Corp. - November 16, 2020) - Benchmark Botanics, Inc. (CSE: BBT) (FSE: BBW) ("Benchmark" or the "Company") announces that the ongoing working capital deficiency of Potanicals Green Growers Inc. ("Potanicals"), the Company's wholly owned subsidiary, has forced Potanicals to make a decision to reduce the majority of its workforce both in the Peachland production facility and the head office. Effective from November 13, 2020, Potanicals has suspended its growing and cultivation operations to allow management to further review its business strategies. Until further notice, Potanicals will only maintain a minimum number of staff as required under its licenses and to package and sell its existing inventory.
Although the Company has been tirelessly exploring various options to address the financial difficulty of Potanicals, Potanicals' operations still suffered significant losses due to the continuous impact of the COVID-19 pandemic and overall market situation in the cannabis sector.
"It has been a very challenging time for Potanicals and the decision to reduce its workforce was a tremendously difficult one. It was not made lightly as we understand how it would impact their staff," said the CEO of the Company, William Ying.
"The Company will endeavour to navigate through this difficult time by reducing overall costs, improving operating efficiency and repositioning the Company for growth to the next stage," added, Mr. Ying.
Benchmark is a diversified multi-licensed cannabis producer focused on a three-way vertical business model targeting the medical and recreational markets in Canada. The Company's business plan also includes a strategy to become a Canadian licensed producer to pioneer selling medical cannabis and hemp throughout Asia, in countries where it is legal to do so.
Benchmark is focused on producing the highest-quality, indoor-grown cannabis for patients and adult recreational consumers, as well as developing international business partnerships to extend the Company's global footprint.
Benchmark's 100% owned subsidiary, Potanicals Green Growers Inc. ("Potanicals) is a Health Canada licensed producer under the Cannabis Act and its regulations. The Company has been producing at its indoor Peachland, BC Cannabis Complex and has been constructing a Phase II expansion of an additional 10,000 square foot extraction facility there. Along with cultivation and production, the company's Peachland BC facility also provided propagation, cultivation, cloning, storage, and research and development including genetic enhancements.
As part of its expansion strategy, the Company and a joint venture partner completed a second facility, a 4-acre Greenhouse Operation in Pitt Meadows, BC. The Company, through Potanicals, has received its second cultivation license, effective November 29, 2019, from Health Canada for the Pitt Meadow greenhouse.
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ON BEHALF OF THE BOARD OF
BENCHMARK BOTANICS INC.
Chief Executive Officer
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This news release contains forward-looking statements pertaining to various risks and uncertainties regarding future events. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Actual results could differ materially from those currently anticipated due to a number of factors and risks including the risk factors discussed in this news release and in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com and on the CSE website. These statements speak only as of the date of this news release. Except as required by law, the Company does not intend to update these forward-looking statements.
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