Unrivaled Brands (OTCQX:UNRV) Inc interim CEO Tiffany Davis has outlined the US multistate operator’s “100 day transformation plan” in a letter to shareholders.
Davis took on the CEO role following the recent departure of Frank Knuettel having sat on the company's board of directors since April 2021.
In the letter, Davis called 2021 “a year of transformation and growth” in which the California-based company reported topline year-over-year revenue growth of 674%.
READ: Unrivaled Brands sees big jump in 4Q and FY2021 revenue as it builds scale in the West Coast cannabis space
Davis acknowledged the firm's “considerable” revenue growth and told investors that this was in line with its strategic initiatives, but added that recent challenges facing California operators had prompted the company to undergo an operational and strategic realignment.
The US state – like many legal markets – has seen an increasing number of obstacles affect licensed operators, such as a tight tax structure, oversupply, and continued competition from the black market.
According to Davis, the firm’s initial focus will be on streamlining and optimizing its business units, with an emphasis on refining the customer experience, capturing supply chain efficiencies, optimizing performing brands, and making intelligent capital investments in ongoing business units, which it believes will drive bottom line profitability.
Transformation plan
More specifically, those steps include tightening operational management; building out the management team, resetting the cost structure to improve financial performance; and restructuring debt, Davis said.
“While there is work to be done to continue to strengthen our future, my decision to take on the role of CEO not only reflects my strong belief in the fundamentals of this company, but also my confidence that my prior experiences in and out of the cannabis sector across M&A, integration, finance, restructuring, operations, and supply chain management, will be highly relevant,” Davis added.
Unrivaled Brands operates four dispensaries in California, as well as direct-to-consumer delivery, a state-wide distribution network, company-owned brands, and two cultivation facilities. In Oregon, it operates a state-wide distribution network, company-owned brands and outdoor and greenhouse cultivation.
The full shareholder letter can be read here.
Contact Angela at angela@proactiveinvestors.com
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