Sunniva Stock Plunges As Company's President Resigns

Sunniva Inc. (OTC: SNNVF) stock plunged over 40%  to lately trade at 45 cents after the company announced that President Kevin Wilkerson would resign. This comes just one week after the company’s Chief Financial Officer also resigned.

Wilkerson also resigned from his position as President and Chief Executive Officer of Sun CA Holdings effective December 2. The company said the resignation was for personal reasons and a replacement has not been named. It follows last week’s announcement that CFO Dave Lyle was resigning, also for personal reasons, and David Weinmann has been appointed interim CFO. In addition to that, Michael Barker who was on the board of directors also resigned.

It was reported that the short interest in the company stock jumped 388% in November, This despite a glowing video on Midas Letter a few weeks ago and news that the company closed on a private placement for $7.5 million.

On November 4, Sunniva said released word that it still planned to work with CannaPharmRx with respect to the sale of Sunniva Medical Inc., yet gave no information as to the need for making such a pronouncement.
In October, Sunniva said it was amending the terms of the performance warrants that had been issued in conjunction with the acquisition of LTYR Logistics. The original milestone had been the opening of a distribution center in Long Beach, CA. That was changed to the opening of a distribution business in Coachella, CA. That meant the warrants would convert to shares immediately and Wilkerson’s 239,491 warrant shares would become performance shares.

Last quarter the company reported revenue of C$5.3 million, but net losses of C$14.9 million.

In April, Sunniva said it planned to focus primarily on the ongoing development of our California assets and brands in California. In a statement, the company noted, “In Canada, we continue to expand our Natural Health Services operations with new leadership from Dr. Mark Kimmins. We have suspended operations on our Okanagan Falls property (the “Sunniva Canada Campus”) as we focus efforts on US operations, and we continue to review strategic initiatives in respect of our Canadian assets.”

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.

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