Item 9 Labs cuts costs before Sessions Cannabis acquisition - Phoenix Business Journal

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The Phoenix cannabis company plans to rapidly grow its store count.

Citing the need to streamline operations, cut costs and consolidate employee duties ahead of an upcoming Canadian acquisition, Phoenix cannabis company Item 9 Labs Corp. has appointed a new CEO and made several other personnel shifts.

A week after promoting Mike Weinberger from chief franchise officer to CEO, Item 9 has made a number of other key appointments in its team as it gets ready to acquire Sessions Cannabis, one of Canada’s largest cannabis retail franchisors, founded in 2019. The two companies signed an agreement for the deal back in May.

Weinberger said the changes make the company ready for rapid expansion as it enters its first international market. Canada is the world’s second-largest cannabis market, with 50% year-over-year growth in 2021 and sales expected to double by 2026, Item 9 said. "We believe the Sessions acquisition has the potential to be a true game changer for Item 9 Labs Corp.," Weinberger said in a statement."Not only does it significantly increase our retail footprint and bring us into a new country, but we will be able to continue rapidly growing our store count because we now have the right people in the right seats."

The personnel shifts are meant to reduce redundancies without sacrificing profitability and growth potential. The company said it has consolidated headcount by 20% and reduced overhead expenses by more than 15% through other cost-saving measures.

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