After the market close on Wednesday, Cronos Group Inc. (NASDAQ: CRON) entered into a separation agreement On January 15, 2020, with David Hsu, who resigned from his position as the Company’s Chief Operating Officer effective as of the close of business on December 31, 2019. A successor was not named.
Hsu joined the company in 2016 and oversaw all of Cronos Group’s operations including construction, cultivation, and manufacturing as Chief Operating Officer. Prior to joining Cronos Group, David spent over ten years consulting with Deloitte and CRG Partners, a premier turnaround consulting firm, where he operated and managed distressed companies with revenues of more than $500.
On January 17, 2020, Cronos also entered into a separation agreement with William Hilson, who resigned from his position as the company’s Chief Commercial Officer.
According to the filing, Hsu will receive cash severance in an aggregate amount equal to C$400,000 and Mr. Hilson will receive cash severance in an aggregate amount equal to C$167,500, less, in each case, applicable statutory deductions and withholdings, payable within 60 days after the Separation Date; and each executive will be entitled to subsidized life insurance, medical and dental benefits until the earlier of June 30, 2020, and the date on which such executive obtains alternate benefit coverage. Outstanding unvested Company options held by each executive as of the
Separation Date vest on an accelerated basis as of the Separation Date and each executive’s vested options may be exercised, in accordance with the terms of the applicable award agreements, by the earlier of the date on which such options’ original exercise term expires and June 30, 2020.
In November, the company reported that its third-quarter net revenue increased 238% in Canadian dollars to $12.7 million versus last year’s $3.8 million for the same time period. Cronos attributed the gain to the launch of the adult-use market in Canada and the inclusion of Redwood from the date of closing on September 5, 2019, to the end of the quarter. Sequentially, net revenue rose 24% from $10.2 million in the second quarter as the company said that improvement was due to increased sales in domestic dried cannabis and the inclusion of Redwood