By far the biggest news in the cannabis sector last week was the resignation of Canopy Growth & # 39; s co-CEO Bruce Linton. The founder of the largest marijuana company in the world was removed last Wednesday by the company's board of directors, led by the American-based beverage giant Constellation Brands (NYSE :).
Some observers have noted that the removal of Linton was a direct response to Canopy Growth & # 39; s (NYSE :), (TSX 🙂 last, revealed last month, which showed a net loss of C $ 335.6 million ( US $ 255.83 million), and Constellation tested patience.
The shake-up – causing Mark Zekulin, the former co-CEO at the helm of Canopy – to swing the price of the company's shares wildly. Canopy shares immediately took a dive when the news about the dismissal of Linton was made public and would lose 3.6% or US $ 1.44 per share to reach a low of US $ 39,095 (C $ 50.40). But by the end of last week, the share price had returned to US $ 40.16 (C $ 52.63).
Closed yesterday for US $ 39.47 and C $ 51.64.
Canopy Growth price card
The theory that Constellation Brands was behind the move fueled the Corona beer maker's statement that it fully supports the decision of Canopy & # 39; s board to appoint Zekulin as the sole CEO.
Shakes at the highest level
Making front page news in national newspapers in Canada, Linton's departure has undoubtedly been the biggest decapitation of cannabis companies, but it is only the latest in what will become a long series of top shakes in the marijuana industry.
These alternating movements that come one after the other make it difficult to easily see them as isolated events. They may be part of a trend.
The control of large cannabis companies is a transition from the players who in many cases started the companies to a second generation of leadership. And this new wave of management marks a shift, making profitability more important as operations continue to scale. It is a sign of an industry that is growing up.
Several of the leading marijuana companies have gone through a similar process of dumping their top drivers in recent months, and in many cases these individuals were the original founders of the companies
Aurora
Aurora Cannabis (NYSE :), (TSX 🙂 in February reorganized the residents of the corner suite when it was named Michael Singer as executive chairman over CEO and co-founder Terry Booth.
Booth had founded the Edmonton-based marijuana grower in 2013, when the Canadian government created the Marijuana Arrangement for medical purposes. He built the company from the ground up.
Under his stewardship, Aurora moved from owning a 100-hectare plot of land to a leading medical marijuana producer with a market capitalization of $ 7.52 billion (C $ 9.85 billion) in 24 countries on five continents.
Aphria
Over in Aphria (NYSE :), (TSX 🙂 the Ontario-based medical cannabis grower announced at the end of December 2018 the appointment of Irwin Simon as his new interim CEO. The former head of Hain Celestial (NASDAQ :), an organic organic food producer, Simon replaced Vic Neufeld, who resigned and said the five-year company is taking its toll on its health and private life.
From the beginning of 2013 until the end of 2018, Aphria shares went from around C $ 0.50 to C $ 7.85 (US $ 2.67 to US $ 5.69). Today, Aphria is a leading cannabis player operating in 10 countries on five continents with a market capitalization of US $ 1.69 billion (C $ 2.22 billion).
CannTrust
Similarly, last fall, CannTrust Holdings (NYSE :), (TSX :), appointed bank director Peter Aceto as his new CEO, replacing the company's founder, Eric Paul. Paul was moved to the position of chairman of the board and called a special adviser.
After Paul resigned, two other top executives left the company – former president Brad Rogers and head of production Michael Revensdale.
CannTrust made a new editorial yesterday, when a report from Health Canada, which regulates cannabis practices, outlines how the company does not comply with the regulations of its growing company in Pelham, Ont. The company was found to grow cannabis in five unauthorized areas in a greenhouse factory between October 2018 and March March.
This timeframe includes the period in which the company was processing applications at Health Canada to use the space for growing activities. Licenses for these rooms were finally issued in April. But the news was enough to make the company's stock fall by more than 22% to close at US $ 3.83 (C $ 5.00).
