TORONTO, May 29, 2019 /CNW/ - GreenSpace Brands (TSXV:JTR)
("GreenSpace") today announced the completion of the final phase of
the restructuring of its operating model, the appointment of 2 new
Brand level Presidents, and the departure of its COO, Aaron Skelton to pursue other opportunities in
the industry.
The announced restructuring creates three new brand-level
Presidents who will lead the Central Roast brand, the Go Veggie/
Riot brands and the Love Child brands respectively. Chris Renner has been appointed the President of
Central Roast to oversee all day to day operating activities for
that brand, in addition to his current role as the Head of Canadian
Sales. Chris has extensive general manager experience in previous
roles with Burts Bees and Glad food storage, as well as senior
sales and marketing roles with Clorox, Ultima Foods and Maple Leaf
Foods. Chris will be responsible for all elements of Central Roast,
including full P&L responsibility. He will be focused on
rebuilding confidence with retail customers after many months of
product shorts, finding new distribution for Central Roast in
alternative channels including Private Label, and generally
improving the operations of the Central Roast facility.
C. Scott Riddle has been
appointed President of Galaxy Nutritionals, the owners of the Go
Veggie and Riot brands. Scott is a natural foods industry veteran
of 15 years having served as Vice President of Sales and Marketing
for some of the leading Natural Foods businesses in the United States, including Organic Bistro,
Artisan Bistro and Bounce Energy Balls. Scott will be focused on
launching GreenSpace's new entry into the plant-based cheese
category, Riot Eats, as well as completing the re-brand of Go
Veggie and improving distribution for both brands in both the US
and Canada.
A search is underway for a President for Love Child Organics. An
incentive-based compensation structure for the Brand President
roles will be tied to brand level P&L metrics to promote
alignment.
In addition to the appointment of brand level Presidents,
GreenSpace has made the difficult decision to eliminate eight roles
within the company, most of which are either brand level senior
marketing positions or senior leadership positions within the
platform. The remaining shared service elements within GreenSpace
will be within the Sales function, which has been highly successful
over the last four years, and the senior finance function which
will work with brand level accounting teams to analyze and report
on financial results.
"The final phase of this restructuring has been the most
challenging phase as we have now switched our model over completely
from a shared operating structure to brand level autonomy. The
shift to a brand level operating structure will bring not only
streamlined decision making but a much higher level of
accountability to the bottom line across the entire organization"
says Matthew von Teichman, CEO of
GreenSpace Brands. "Aaron's departure will be a particularly large
adjustment for the team as he's been a critical element in the
growth of the business and in our success over the last few years.
We wish him well with whatever comes next in his very bright
future."
A restructuring charge will be recorded in Q1 and is expected to
save the Company approximately $1.2
million on an annual basis, and will complete the transition
back to profitability for the business.
About GreenSpace
GreenSpace is a Canadian-based
value-added accelerator of natural food brands. Our brands feature
premium natural and organic products available to consumers across
North America. GreenSpace owns
Life Choices, convenience meat products made with grass fed and
pasture raised meats without the use of added hormones and
antibiotics, Love Child, a producer of 100% organic food for
infants and toddlers made with the purest, natural and most
nutritionally-rich ingredients, Central Roast, a clean snacking
brand featuring a wide assortment of nut and seed mixes, Cedar, the
leaders in the Canadian Cold Press Juice category and Go Veggie,
one of the leaders in the US plant based cheese market. All brands
are wholly owned and retail in a variety of natural and mass retail
grocery locations across Canada
and the United States.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This news release contains certain
forward-looking statements and forward-looking information
(collectively referred to herein as "forward-looking statements")
within the meaning of applicable Canadian securities laws. All
statements other than statements of present or historical fact are
forward-looking statements. Forward-looking statements are often,
but not always, identified by the use of words such as
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"objective", "continuous", "ongoing", "estimate", "outlook",
"expect", "may", "will", "project", "should" or similar words,
including negatives thereof, suggesting future outcomes. Management
of GreenSpace (the "Companies") believe the expectations reflected
in such forward-looking statements are reasonable as of the date
hereof but no assurance can be given that these expectations will
prove to be correct and such forward-looking statements should not
be unduly relied upon. Various material factors and assumptions are
typically applied in drawing conclusions or making the forecasts or
projections set out in forward-looking statements. . The
forward-looking statements in this release are based on certain
assumptions and involve known and unknown risks and uncertainties
and other factors that could cause actual events to differ
materially from current assumptions and expectations, including,
but not limited to, that: the conditions to the completion of the
investments and supply agreement contemplated herein will be
satisfied, the investments and supply agreement contemplated herein
will be completed on the terms substantially described in this
release, that applicable regulatory, exchange and third party
approvals will for the transactions described herein will be
obtained, and that customers will respond positively to the
Companies' new product lines. Those material factors and
assumptions are based on information currently available to the
Companies, including data from publicly available governmental
sources as well as from market research and industry analysis and
on assumptions based on data and knowledge of this industry which
the Companies believe to be reasonable. However, although generally
indicative of relative market positions, market shares and
performance characteristics, such data is inherently imprecise.
While the Companies are not aware of any misstatement regarding any
industry or government data presented herein, the anticipated
recreational cannabis industry involves risks and uncertainties and
is subject to change based on various factors.
Forward-looking statements are not a guarantee of future
performance and are subject to and involve a number of known and
unknown risks and uncertainties, many of which are beyond the
control of the Companies, which may cause actual performance and
results to differ materially from any projections of future
performance or results expressed or implied by such forward-looking
statements. These risks and uncertainties include, but are not
limited to, the risks identified in GreenSpace's March 31, 2018 Management's Discussion and
Analysis, which have been filed with the Canadian Securities
Administrators and available on www.sedar.com. Any forward-looking
statements are made as of the date hereof and, except as required
by law, the Companies assume no obligation to publicly update or
revise such statements to reflect new information, subsequent or
otherwise.
Neither the Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the Exchange) accepts
responsibility for the adequacy or accuracy of this Press
release.
SOURCE GreenSpace Brands Inc.