- RotoGro World Wide, a subsidiary of RotoGro (RGI), has implemented an operational plan amidst the ongoing COVID-19 pandemic
- The company has suspended the employment of 12 staff to unpaid leave and will continue to review this over a rolling two-week period
- The Board of Directors, Executive Management Team and remaining staff have all agreed to salary reductions
- CEO Adam Clode agreed to both a 66 per cent salary reduction and deferment of salary payments to keep the company alive
- It is not certain how long this will continue, but measures will be reviewed as COVID-19 unfolds
- RotoGro's shares are steady today and trading for five cents each
RotoGro World Wide, a subsidiary of RotoGro (RGI), has implemented an operational plan amidst the ongoing COVID-19 pandemic.
On March 22, the province of Ontario, Canada (where RotoGro's facility lies), declared a state of emergency. At this stage, it is likely most of Canada's other provinces will follow suit.
Extreme social distancing measures have already taken hold nation-wide, which has caused extraordinary consequences to businesses to almost every sector, including RotoGro.
The impact that COVID-19 is having on businesses has caused RotoGro to take quick steps to implement protocols and systems which make the employees and customer's health and safety a top priority.
In relation to the financial realities of COVID-19, the company has put an operational plan in place, which includes the immediate reduction of the workforce to essential personnel only.
As a result of this, RotoGro has suspended the employment of 12 staff to unpaid leave, and will continue to review this on a rolling two-week period based on national and international health guidelines, and the state of the economy.
The Board of Directors, the Executive Management Team, and all remaining staff have all agreed to salary reductions.
RotoGro's CEO Adam Clode agreed to both a 66 per cent salary reduction and deferment of salary payments as the company works towards driving shareholder value and sustained revenue.
The Executive Management team have initiated cost-saving measures around purchase orders, third party costs and leasehold improvements.
These will remain in place during this time of economic uncertainty and will be reviewed as COVID-19 unfolds.
"We have put in place critical operational measures to assist in [reducing the spread of COVID-19] and will continue to closely monitor the situation," CEO Adam Clode said.
"We remain steadfast in our pursuit of the company's first lawful cannabis facility at CanniFarms and continue to work closely with our perishable food partners for the development of our first commercial urban vertical farming facility."
"We are doing everything possible to implement austerity measures whilst continuing to drive business outcomes in these challenging times," he added.
RotoGro's shares are steady today and trading for five cents each at 1:05 pm AEDT.