TORONTO, Feb. 15,
2023 /CNW/ - EMERGE Commerce Ltd.
(TSXV: ECOM) ("EMERGE" or the "Company"), a
diversified acquirer and operator of niche e-commerce brands, today
announced additional cost optimization and synergies measures.
The Company is pleased to announce continued progress in our
cost reduction efforts meant to enhance cash flow generation.
Further to the anticipated savings previously announced in late
2022, the Company has identified additional savings and cost
reductions of $1M, for a combined
annualized total of $2M in
anticipated savings implemented under this initiative.
As part of overall efforts to drive additional cash flow, the
initiative includes reducing overhead expenses, improving margins,
maximizing cross-functional synergies amongst EMERGE HQ and
portfolio brands, and eliminating unprofitable revenue streams.
"The implemented savings mean EMERGE is yielding more revenue
per employee, making it a leaner team than it has been at any point
since completing our latest acquisitions," said Ghassan Halazon,
Founder and CEO of EMERGE.
Examples of savings from recent efforts include corporate
expenses such as investor relations, office rent, and M&A, in
addition to staff reductions associated with unprofitable and
discontinued revenue streams. EMERGE expects to begin seeing
results from some of these additional measures starting Q1
2023.
"The Company's top priority for 2023 remains to optimize the
business for cash flow generation, and we believe these additional
savings represent another significant step towards our primary
objective," continued Halazon.
About EMERGE
EMERGE is a diversified acquirer and
operator of profitable niche e-commerce brands. Our subscription
and marketplace e-commerce properties provide our members with
access to pet products, premium meat, outdoor gear, golf, and other
curated experiences. Our portfolio houses various online
destinations including WholesalePet.com, trulocal.ca, BattlBox.com,
UnderPar.com, JustGolfStuff.ca, CarnivoreClub.co, WagJag.com,
BeRightBack.ca, and Wanlow.com. EMERGE was named one
of Canada's Top Growing Companies by Globe and Mail in
2022 (and 2020), and one of the fastest growing companies
in Canada by the Startup 50 in 2020.
To learn more visit https://www.emerge-commerce.com/
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Cautionary notice
Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Notice regarding forward-looking statements
This press release may contain certain forward-looking
information and statements ("forward-looking information") within
the meaning of applicable Canadian securities legislation, that are
not based on historical fact, including without limitation
statements containing the words "believes", "anticipates", "plans",
"intends", "will", "should", "expects", "continue", "estimate",
"forecasts" and other similar expressions. Readers are cautioned to
not place undue reliance on forward-looking information. Actual
results and developments may differ materially from those
contemplated by these statements. The Company undertakes no
obligation to comment on analyses, expectations or statements made
by third-parties in respect of the Company, its securities, or
financial or operating results (as applicable). Although the
Company believes that the expectations reflected in forward-looking
information in this press release are reasonable, such
forward-looking information has been based on expectations, factors
and assumptions concerning future events which may prove to be
inaccurate and are subject to numerous risks and uncertainties,
certain of which are beyond the Company's control, including the
risk factors discussed in the Company's annual information form,
which are available through SEDAR
at www.sedar.com. The forward-looking
information contained in this press release are expressly qualified
by this cautionary statement and are made as of the date hereof.
The Company disclaims any intention and has no obligation or
responsibility, except as required by law, to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise.
On Behalf of the Board
Ghassan Halazon
Director and CEO
SOURCE EMERGE Commerce Ltd.