SLANG Worldwide Inc. (CSE: SLNG) (OTCQB: SLGWF) issued a letter to its shareholders from its Interim CEO and Chairman of Slang, Drew McManigle outlining the company’s reduction in operating costs. Four months ago, Slang overhauled its C-suite tossing CEO Chris Driessen and appointing McManigle as interim CEO and Chairman. McManigle also succeeded Peter Miller as Chairman of the Board. McManigle is the Founder and Chief Executive Officer of MACCO Restructuring Group, LLC and he planned on tapping Macco’s resources for rapid strategic reviews and business plan implementation.
McManigle said the company has already cut $2.1 million in operating costs. In late November 2021, the company reduced operations to Vermont and Colorado, while essentially eliminated the Oregon operations. He wrote, “We have successfully reduced overseas freight costs. Most notably, we have sourced and contracted for distillate in Colorado at a significant reduction from the Company’s prior year average cost of distillate, which can strongly enhance both revenue and margins. Additionally, we assessed and are exploring opportunities to divest several licenses in the State, as well as, our costly cultivation facility.”
In August 2021 under the old management, Slang bought High Fidelity/Ceres, Vermont’s largest medical cannabis company, which became part of the company’s core strategy. With this acquisition, it has two of the five medical cannabis licenses granted in Vermont with four dispensaries, including one that is strategically located in the Burlington area, with the ability to add two new retail dispensaries upon receipt of the requisite licenses. The letter said, “In addition, with the advent of recreational cannabis use in Vermont later this year, the potential for material revenue growth, at healthy margins, can occur while we work to further increase overall enterprise value for SLANG.”
The company said that in December it got a medical license for Trenton NJ and hope for more revenue opportunities in the state. New Jersey has recently legalized adult-use saes and the state is close to opening up those sales.