Pot producer Cover to divest Canadian retail operations in revenue hunt By Reuters

(Reuters) -Canada’s Cover Progress (NASDAQ:) Corp mentioned on Tuesday it will divest its retail enterprise throughout Canada, because the pot producer doubles down on its efforts to show worthwhile.

The enterprise consists of shops working beneath the Tweed and Tokyo Smoke retail banners, and follows current efforts to grow to be worthwhile by reining in prices by layoffs, exits from some worldwide markets and retailer closures.

Licensee accomplice OEG Retail Hashish will purchase 23 Tokyo Smoke and Tweed shops throughout Manitoba, Saskatchewan, and Newfoundland and Labrador, whereas hashish retailer 420 Investments Ltd will buy 5 company shops in Alberta, the corporate mentioned.

The grasp license deal between Cover and Alimentation Couche-Tard Inc associated to the usage of the Tweed model for brick-and-mortar retail shops working in Ontario has additionally been terminated.

Cover mentioned all in-store workers working within the areas being acquired will probably be employed by the consumers pending completion of the transactions.

Earlier this 12 months, the corporate prolonged its time-frame to attain profitability as fewer-than-expected retail shops and cheaper black market charges crimp gross sales at authorized leisure corporations.