Abrupt exits signal ‘disarray’ at Canopy Growth

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Effective immediately, executive VP and CFO Mike Lee and president and chief product officer Rade Kovacevic are stepping down from their roles at Canopy Growth, according to an announcement made on Friday. 

“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,” said CEO David Klein in a statement. “We appreciate Mike and Rade’s contributions to advancing Canopy Growth to our position as a cannabis industry leader.”

Stifel sticks with its sell rating

Investment bank Stifel issued a research note that was critical of investor Constellation’s “outsized influence” on the company, saying that it has shown “a complete misunderstanding of the cannabis consumer” among other issues, reported Investors.com

“We believe the changes point to an organization in disarray with necessary strategic/personnel changes unlikely given Constellation Brands’ control of the board,” wrote analyst Andrew Carter.

‘A good fit’: Wana CEO

On Thursday, MJBizDaily published a Q&A with Wana Brands CEO Nancy Whiteman, who explained why she felt Canopy’s plans to acquire the company post-federal legalization was a good opportunity for the Colorado-based edibles company.

“This was a good fit to become part of something that was already established, that had deep resources, that shared our values,” she said. “A partner that would help us grow — the kind of deal that I was looking for.”

What’s next

Judy Hong will take over as interim CFO and Tara Rozalowsky as interim CPO. Kovacevic and Lee will stay on in advisory roles until Dec. 31, 2021.

“Judy and Tara are established leaders who have played pivotal roles during their tenure at Canopy Growth,” said Klein. “I am confident in their ability to execute against our strategic priorities as we accelerate our path to profitability.”

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