The growing range of individuals at the helm of a marijuana company who have left the office on the corner has increased slightly over the past week as Chief Executive Officer of Medmen (OTC :), (CSE :), a US-based US of cannabis, resigned with effect from 1 February.
In fact, since the beginning of 2020, the number of rooms leaving the executive suites in the cannabis sector has been accelerating.
The announcement of Adam Bierman's departure from MedMen came last Friday and it is not an unusual story in the industry that has seen stock prices fall throughout much of 2019. In the case of MedMen, the company has seen its inventory value diminish by a shocking 87% in the US – and more than 91% since a peak on the Canadian stock exchange in October 2018.
The company operating in the United States, will set up a commission to conduct a search for Bierman's replacement and has appointed Chief Operating Officer Ryan Lissack as interim CEO.
MedMen has struggled with a series of setbacks. Last October it announced it was withdrawing from a US $ 682 million (C $ 905 million) deal to acquire Chicago-based PharmaCann in what was described as one of the largest deals in the US marijuana sector.
Before it was completely called off, the deal-that-had not been delayed due to regulatory issues while the state of Illinois struggled with legalizing marijuana.
But that was not the only step back from MedMen. In November it announced layoffs. Then on December 27, it announced the sale of what it called "non-core assets" to strengthen its cash assets.
The day before Bierman & # 39; s departure from MedMen was announced, Sundial Growers (NASDAQ :), a cannabis producer based in Calgary, issued a statement about the resignation of his CEO, Torsten Kuenzlen, and COO, Brian Harriman. The company's executive chairman, Ted Hellard, also resigned. Board member Zach George was appointed as the new CEO.
Trading in Sundial Growers shares lost nearly 27% on the day the departure was announced. The stock has come back a little and has won more than 11.5% yesterday. Since the beginning of August last year, Sundial shares have lost nearly 90% of their value.
Similarly there was a commotion at Flowr Corp (OTC: ), (TSXV :), a Canada-based grower traded in the US and Canada, who announced last week the departure of his CFO, chief strategy officer, chief research and innovation officer, and chief policy and medical officer. You could almost hear the echo in the room when they were all cleaning up.
The company's shares have lost nearly 14% since the announcement, closing 9.36% yesterday on the TSX Venture stock market and nearly 7.5% on the US OTC market.
Prediction of cannabis consumption by consumers very positive
Although the cannabis industry's view on the executive level may seem somewhat precarious and many investors are still licking their wounds to double digits, the latest industry report points to more positive prospects.
According to the latest report from Archview Market Research, The State of Legal Cannabis Markets, issued last week, consumer spending on legal cannabis increased by 46% to US $ 14.9 billion in 2019. In addition, global legal cannabis spending is expected to reach US $ 42.7 billion by 2024, representing a composite annual growth rate of 26.9% from 2018.
The predicted increase compared to earlier estimates is based on "expected strength" in adult use markets in major US states and Canada until 2024, "notes the Archview report.
Indeed, it claims that different markets performed better in 2019 than originally predicted. And in several major US markets, cannabis will be legalized in 2022, including New York and New Jersey, while smaller US markets are expected to introduce medical cannabis programs in 2023 and 2024.
