Canopy Growth (CGC) (WEED), one of the most prominent players in the cannabis industry, took the market by surprise. The company let CEO Bruce Linton go. After leaving Canopy Growth, Linton joined three companies in an advisory role. Meanwhile, Canopy Growth is looking for a new CEO. Let’s take a look what’s happening with Canopy Growth and its ex-CEO.
Canopy Growth’s ex-CEO takes on an advisory role
- helping the company expand its global cannabinoid animal research
- exploring strategic initiatives and partnerships for the business
- building an internal intellectual property, data, and analytics platform
Better Choice CEO Damian Dalla-Longa thinks that the partnership will add value to the company. He said, “A core focus of our partnership will be developing a more comprehensive understanding of the benefits of CBD and other cannabinoids for animals in federally permissible ways. Additionally, as Bruce has built a tremendous amount of shareholder value and an established international network, his expertise is irreplaceable as we continue to grow and expand our global platform.” Better Choice is an animal health and wellness cannabinoid company.
Linton’s other advisory roles
Linton also took up active advisory roles in Wolverine Partners and MindMed. Linton will be Wolverine’s executive chairman. Soon, the company will change its name to Gage Cannabis after closing its acquisition with Rivers Innovations. Wolverine focuses on cultivating high-quality cannabis products for patients in Michigan.
Linton will also join MindMed as the director. Currently, MindMed is undertaking a drug development pipeline of psychedelic inspired medicines planning or undertaking FDA trials. Linton will also play an activist role in SLANG Worldwide and OG DNA Genetics.
According to a Market Watch report, Linton spoke about his new roles. He said, “The way I selected the companies was not how much equity they would give me. With each firm and space, I sought to develop a specific view of how we build enterprise value from the current activities and limit disruption.” He can’t be part of the Canadian cannabis space due to a non-compete clause. However, Linton can take on advisory roles.
Canopy Growth looks for new CEO
On another note, a Growth Op article mentioned that Canopy Growth is looking for a new CEO. In the company’s annual general meeting for shareholders in Toronto, management said it will complete the new CEO transition by the end of the current calendar year.
When asked if his announcement was timed with Canopy Growth’s announcement, Linton said, “Well, not intentionally. I think its divine intervention.” We don’t know if both of the announcements at the same time were a coincidence or not. However, the timing definitely helped Canopy Growth stock. The stock closed 2.1% higher on Tuesday. Better Company shares increased after the announcement. The stock closed 5.8% higher on Tuesday.
Canopy Growth and Martha Stewart plan to launch cannabis-related animal care, cosmetic, and food products. Canopy Growth is also gearing up for edibles expansion after Canada legalizes cannabis edibles and beverages in October. Linton still believes in Canopy Growth’s future. He bought more shares in August. Currently, Constellation Brands (STZ) is the largest shareholder in the company.
Aurora Cannabis (ACVB) provides tough competition for Canopy Growth in the cannabis space. Recently, Aurora Cannabis released its fourth-quarter results. The company is expanding its edibles market. The company plans to produce edible products, like gummies and chocolate, through its the Aurora Air facility. The products will be available to consumers starting in December. The Aurora Polaris facility will also produce edibles like chocolates, hard baked goods, mints, and infused beverages. Aurora Cannabis stock fell 3.3% on Tuesday. The stock has fallen 4.1% in September. Meanwhile, Canopy Growth has gained 20.3% in September.
What do we think?
Will Linton’s expertise in the cannabis space take these small-cap companies to greater heights? We’ll know soon! Meanwhile, the cannabis space faces other challenges from vaping concerns to legalization issues. The legalization topic might have lost its steam. Cannabis legalization wasn’t addressed in the third presidential debate. I still think that President Trump could turn around things. He could use marijuana legalization as a key platform in his reelection campaign. Canada is gearing up for the second wave of legalization, while other countries are also stepping up.
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