Canopy Growth Corp. (NYSE: CGC) shares dipped on Wednesday after the company announced that it would be making a change at the top. Essentially, its co-CEO will step down, effective immediately, leaving just one man in the driver’s seat.
According to the company, Bruce Linton announced that he will step down as co-CEO and Canopy board member. Mark Zekulin has agreed to become the sole CEO of the company and will work with the board of directors to begin a search to identify a new leader to guide the company in its next phase of growth, including both internal and external candidates.
Rade Kovacevic, a long-serving member of the team currently leading all Canadian operations and recreational strategy will assume the role of president.
Canopy Growth has experienced rapid growth since its founding in 2013, establishing leading positions in Canada’s medical and recreational cannabis markets and building an emerging presence in a number of additional markets around the world.
The company recently received a C$5 billion (less than US$4 billion) investment from Constellation Brands, a leading beverage alcohol company, which provides a significant benefit as Canopy continues to establish a first-mover advantage in the quickly evolving global cannabis market.
Zekulin commented:
While Canopy will never be the same without Bruce, the team and I look forward to continuing to do what we have done for the past 6 years: investing in world class people, infrastructure and brands, and always seeking to lead through credibility and vision. I personally remain committed to a successful transition over the coming year as we begin a process to identify new leadership that will drive our collective vision forward. I know the company will continue to thrive as the Canopy story continues on for years to come.
Shares of Canopy Growth traded down about 4% Wednesday morning to $38.53, in a 52-week range of $24.21 to $59.25.
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