Legible Cuts Costs and Streamlines Operations

Rhea-AI Summary

Legible Inc. has announced a significant reduction in its workforce from 60 to 37 employees, effective April 4, aimed at streamlining operations and cutting the annual burn rate by nearly $2 million. This restructuring entails a one-time cost of $75,200. CEO Kaleeg Hainsworth emphasized this decision supports their revenue growth strategy for 2022 and beyond. Hainsworth will also take over responsibilities from the former CTO, Adam Zouak, while presenting at the London Book Fair on April 5 to advance partnerships with major publishers.

Positive

• Reduction in workforce expected to lower annual burn rate by nearly $2 million.
• CEO's focus on advancing multiple revenue streams to ensure growth.
• Existing contracts with top global publishers and a major digital content platform.

Negative

• Reduction in workforce from 60 to 37 may impact operational capacity and morale.

 

VANCOUVER, British Columbia--(BUSINESS WIRE)-- Legible Inc. (CSE: READ) (FSE: D0T) (OTC: LEBGF) (" Legible” or the “Company”) announces that the Company has made the difficult decision to reduce the number of employees in the Company from 60 to 37, effective April 4, streamlining operations and reducing the Company’s annual burn rate by nearly $2 million. The one-time aggregate restructuring cost associated with the terminations is $75,200.

With this restructuring, Legible is focused on advancing a number of revenue streams that have the potential to result in significant growth for the Company. “This recalibration of our operations and staffing levels will help to ensure that Legible successfully delivers on our revenue growth strategy for 2022 and beyond,” said CEO Kaleeg Hainsworth.

Mr. Hainsworth will assume the duties of Mr. Adam Zouak, Legible’s former Chief Technology Officer (CTO), who along with other employees has elected to move on. “We wish Adam and all of our former staff members success in their future endeavors and thank them deeply for their substantial contributions in helping to build Legible to date,” said Hainsworth, who will draw on his extensive publishing and technical software background to oversee Legible’s product development team.

Mr. Hainsworth will present the keynote address at the London Book Fair today, April 5, entitled: “How the Next One Billion Internet Users Will Read Our Books”, and a second presentation on Thursday showcasing the Legible platform and featuring a ground-breaking new “living book” format that will transform the way eBooks are created and presented.

The London Book Fair is the second largest book fair in the world and will be attended in person and/or streamed to an anticipated 20,000 attendees comprised of publishers, distributors, authors, and readers. “While in London, I will be meeting with multiple publishers about Legible and our plans to further increase and diversify our content offerings,” added Hainsworth.

Legible already has contracts in place with three of the world’s top global publishers, as well as one of the largest digital content distribution platforms in the world, CoreSource®, a division of the Ingram Content Group.

About Legible Inc.

Legible is a book entertainment and media company that has developed an online eBook marketplace called Legible.com, with an eBook reading system capable of showcasing next-generation book content, and a world-class digital conversion publishing service for creating multimedia eBooks and born-accessible eBook content.

Founded and led by a team of technologists, authors, eBook publishers, designers, and publishing industry insiders, Legible is transforming the eBook industry. With a mission to provide delightful eBook experiences to readers around the globe through any browser-enabled device, Legible is committed to providing delightful eReading to readers that value immersive entertainment experiences through beautifully constructed and content dynamic books, provided by a company that promotes sustainability, accessibility, and global literacy.

Please visit Legible.com and discover the place where eBooks come to life.

Readers are invited to visit Legible’s continually evolving curated Staff-Picks Bookshelf:https://legible.com/ca/list/staff-picks

Forward-Looking Information

Certain statements in this press release are forward-looking statements and are prospective in nature. Forward-looking ‎statements are not based on historical facts, but rather on current expectations and projections about future events, many ‎of which, by their nature, are inherently uncertain and outside of the Company’s control and are therefore subject to risks ‎and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the ‎forward-looking statements. In particular, this press release contains forward looking statements regarding the expected reduction of expenses as a result of employment terminations. These statements generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative ‎thereof or similar variations. Those assumptions and factors are based on information currently available to the Company. Although management of the ‎Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as ‎anticipated, estimated or intended. Among the key factors that could cause actual results to differ materially from those ‎projected in the forward-looking information and statements are the following: changes in general economic, business and political conditions, ‎including changes in the financial markets; changes in applicable laws; ‎and the diversion of management time. Should one or more of these risks, uncertainties or ‎other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, ‎actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or ‎expected. There can be no assurance that such statements will prove to be accurate, as actual results and future events ‎could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-‎looking statements and forward-looking information. The forward-looking information contained in this release is made as of ‎the date hereof and the Company assumes no obligation to update or revise any forward-looking statements or forward-‎looking information that are incorporated by reference herein, whether as a result of new information, future events or ‎otherwise, except as required by applicable securities laws. The foregoing statements expressly qualify any forward-looking ‎information contained herein. All subsequent written and oral forward-looking information and statements attributable to the ‎Company or persons acting on its behalf is expressly qualified in its entirety by this notice.‎

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN UNITED STATES

View source version on businesswire.com: https://www.businesswire.com/news/home/20220404006085/en/

Kaleeg Hainsworth

President and Chief Executive Officer

Phone: 1 (672) 514-2665

Email: invest@legible.com

Website: Legible.com

Investor Relations: Investors.Legible.com

Source: Legible Inc.

FAQ

What is Legible Inc.'s recent workforce reduction announcement?

Legible Inc. announced it will reduce its workforce from 60 to 37 employees effective April 4, streamlining operations and aiming to cut costs.

How much will Legible Inc.'s annual burn rate decrease due to the restructuring?

The restructuring is expected to reduce Legible Inc.'s annual burn rate by nearly $2 million.

What are the potential benefits of Legible Inc.'s restructuring?

The restructuring is aimed at supporting Legible Inc.'s revenue growth strategy for 2022 and beyond.

Who is the new acting CTO of Legible Inc. after Adam Zouak's departure?

Kaleeg Hainsworth, the CEO, will assume the duties of the former CTO Adam Zouak.

When will Legible Inc. present at the London Book Fair?

Kaleeg Hainsworth will present at the London Book Fair on April 5.

What partnerships does Legible Inc. have with publishers?

Legible Inc. has contracts with three of the world's top global publishers and one of the largest digital content distribution platforms, CoreSource.