Two leading cannabis companies have made major changes in the C-suite on Monday morning.
The biggest move came from HEXO Corp. (TSX: HEXO)(NASDAQ: HEXO) which announced that its CEO and Co-Founder Sebastien St-Louis was leaving immediately and that the company was engaging in a structural reorganization. In addition to the CEO, HEXO said that its Chief Operating Officer, Donald Courtney was also out. The Special Committee of the Board for Succession said it was in advanced discussions with a preferred CEO candidate and expected to make an announcement soon. Courtney will remain as COO until a suitable replacement is named.
The shakeup comes not long after Hexo reported that its third-quarter fiscal 2021 that ended in April, showed total revenue sliding by $10.2 million sequentially to $22.6 million. Since then, the company moved its shares to trade on the NASDAQ and closed on a $144 million offering. The company also closed two acquisitions 48North and Redecan.
“Building HEXO from the ground-up to become number one in Canada has been the highlight of my career,” said Sebastien St-Louis. “Without question, HEXO’s future is bright – I am so proud of the team we established, the brands we launched, and the loyalty our customers have shown us. As a significant shareholder, I look forward to the company’s next exciting stage of growth.”
Hexo said in a statement that its next leader would be well-positioned to integrate its recent acquisitions and “leverage the company’s lean production capabilities, solid brands, and robust product offering to lead HEXO through its next phase of strategic evolution.”
“On behalf of the entire organization, I would like to thank Sebastien for his tremendous impact on the Canadian cannabis industry. Through his years of dedication, he has helped build HEXO into a market leader in Canada,” said Dr. Michael Munzar, Chair of the Board. “The Board has established a Special Committee for Succession to identify a new CEO with the experience to defend HEXO’s position as a market leader in Canada and secure our place as a top-three global cannabis company.”
Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) announced the appointment of Edward (“Ed”) Kremer as its new Chief Financial Officer. Kremer brings over 20 years of financial leadership experience across a wide variety of industries, including technology, fashion, manufacturing, wholesale distribution, licensing, and retail. Jushi also announced that Kimberly Bambach has stepped down from her role as CFO effective immediately, but will remain with the company in a support role through December 1, 2021. Kremer most recently served as Chief Operating and Restructuring Officer of Le Tote and Lord & Taylor, overseeing the organization’s M&A and restructuring efforts.