Flower One chief financial officer Geoff Miachika resigns for personal reasons

He’ll be replaced on an interim basis by David Kane, who has been a chief financial officer in the past for several organizations

Flower One Miachika

Former KPMG Vancouver senior manager Geoff Miachika will leave Flower One Holdings on July 15.

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A Toronto-based weed company will lose a chartered professional accountant with extensive experience working with public companies. According to Flower One Holdings, Geoff Miachika, 39, has resigned for “personal reasons” as chief financial officer, effective July 15.

In the past, the UBC commerce grad worked as a senior manager with KPMG in Vancouver.

As of this writing, Flower One shares trade at $0.48 on the Canadian Securities Exchange, up $0.005 since the market opened this morning.

In the meantime, David Kane, who previously worked for Arthur Andersen and Ernst & Young, has replaced Miachika on an interim basis.

Kane has CFO experience at Xtreme Cubes Corporation and four other organizations.

Through its subsidiary, Flower One Corp., the corporation owns U.S.-based Cana Nevada Corp. And Cana Nevada has several of its subsidiaries, including Cana Nevada Corp.

In 2018, it leased a 455,000-square-foot greenhouse in North Las Vegas, with an option to purchase the facility.

As a result of this, the company cultivates cannabis at the site. In addition, it processes, produces, and packages dry flower, cannabis oils, concentrates, and infused products at that location.

In addition, it has another 25,000-square-foot production facility with nine grow rooms in Nevada.

Photo by Flower One Holdings

Flower One says COVID-19 had no material impact

On June 15, Flower One released its audited annual financial statements. They showed a US$24,963 profit on revenue of US$9.5 million in 2019.

However, no financial statement has been released for the first quarter of 2020.

The company indicated in its recently released annual information form that COVID-19 did not have a material impact in the first three months of 2020.

However, the uncertainty created by the pandemic has contributed to a decline in sales in April and May, Flower Holdings acknowledged.

“The Company has taken steps to minimize the potential impact of the pandemic,” it stated.

“These actions include postponement of discretionary capital expenditures, reduction of general and administrative expenses, temporary staff reductions, and enhanced process optimization to increase efficiencies and reduce costs.”

On June 26, Flower One announced that it had raised $8.2 million through a brokered private placement.

In this deal, the company issued units consisting of one common share and one-half common-share purchase warrant.

The warrants could be exercised at $0.61 until June 26, 2023. That’s provided the common shares remained above $1.22 for 20 consecutive trading days.

Charlie Smith

I'm the editor of the Georgia Straight newspaper in Vancouver, as well as a CannCentral contributor.

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