Cannabis Firm Canopy Replaces Two Executives as Stock Slumps
(Bloomberg) -- Canopy Growth Corp. said it will replace two of its top executives as the Canadian marijuana firm struggles with a slumping stock price and profitability questions.
Chief Financial Officer Mike Lee and Chief Product Officer Rade Kovacevic will step down from their roles immediately and depart the company Dec. 31, Canopy said Friday in a statement. They will serve in advisory capacities in the interim.
Canopy said it has initiated an external search for both roles and named Judy Hong as interim chief financial officer and Tara Rozalowsky as interim chief product officer.
“These decisions reflect management and the board’s vision for building a best-in-class organization that is well-positioned to deliver long-term growth and shareholder value,” Chief Executive Officer David Klein said in the statement.
The company this month reported a worse-than-expected quarterly loss after writing down C$87 million ($68.8 million) worth of cannabis inventory due to weak demand in Canada, Canopy’s biggest market. The shares have plunged by about half this year.
Canopy’s U.S. shares rose 3.2% at 9:38 a.m. in New York.
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