Canopy Growth Suddenly Lets Go of Its Co-CEO Bruce Linton

11:25 07/04/2019

Many were surprised to learn this week that Canopy Growth's CGC  co-CEO Bruce Linton had been fired from the company that he helped to build.

The Canadian marijuana producer, who is the world’s largest publicly traded cannabis company, stated in a press release that Linton had been removed from co-chief executive as well as from being a member of the board.

Former co-CEO Mark Zekulin is now the sole chief exeuctive of the company as they search for a replacement.

Zekulin stated in the company’s press release, “I personally remain committed to a successful transition over the coming year as we begin a process to identify new leadership that will drive our collective vision forward.”

Linton reached out to CNBC to say he had been let go. “I think stepping down might not be the right phrase,” he remarked, referring to the language in the company press release. “I was terminated.”

Shares of Canopy Growth tumbled around 5% on the news.

“The magnitude of losses for [Canopy] has expanded far more than we had expected, and while we commend Linton for his vision in establishing the world’s leading cannabis company, we believe new leadership will be a welcome change,” Cowen analyst Vivien Azer noted.

“About eight months and two days later, I think the board had decided they wanted a different chair and a different co-CEO,” said Linton. He was referring to the multi-billion dollar investment from Constellation Brands last November.

Last month Constellation CEO William Newlands said the company was “not pleased” with Canopy’s fourth quarter results. Canopy had reported a wider-than-expected loss in the quarter. This loss took 20 cents per share out of Constellation’s own earnings.

“What we remain excited about is that this is going to be a big long-term business, and we are working with Canopy almost on a daily basis to ensure that we are all focused on the right things,” Newlands said at the time.

A Constellation spokeswoman said the company is in full support of Zekulin as sole CEO.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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