On Monday, Vireo Health International announced that it terminated Bruce Linton as its executive chairman immediately. The company said that it doesn’t intend to fill the role right now. Linton joined Vireo Health, a US-based cannabis company, in November 2019. His current term as a board member will expire on July 15. Previously, Vireo Health issued incentive warrants to Linton with an expiration date of November 7, 2024. The company preponed the expiration date to June 8, 2021.
Speaking about terminating Linton, Vireo CEO Kyle Kingsley said, “We wish Bruce well in his future endeavors. Our organization will remain focused on executing a strategy which benefits all stakeholders and developing our core medical markets of Arizona, Maryland, Minnesota, New Mexico, New York, and Pennsylvania.”
Linton co-founded Canopy Growth (NYSE:CGC)(TSE:WEED), one of the main players in the cannabis space, in 2013. In October 2017, Constellation Brands acquired a 9.9% stake in Canopy Growth. In August 2018, Constellation Brands increased its stake to 38% and bought warrants to increase its stake to over 50%. However, Constellation Brands wasn’t happy with Canopy Growth’s performance. So, Linton was let go in July 2019. David Klein previously served as Constellation Brands’ CFO. He became Canopy Growth’s CEO in January 2020.
Vireo Health’s stock performance
So far this year, Vireo Health has lost 34.1% of its stock value. Weakness in the cannabis sector and concerns about dilution due to new equity offerings led to a fall in the company’s stock price. YTD, Vireo Health has underperformed cannabis ETFs and its peers. The ETFMG Alternative Harvest ETF (NYSE:MJ) has declined by 11.3% during the same period. Curaleaf and Cresco Labs (OTCMKTS:CRLBF) have fallen by 2.2% and 24.9%, respectively.
Last month, Curaleaf reported its first-quarter performance. During the quarter, Curaleaf missed analysts’ revenue expectations. However, the adjusted EBITDA and adjusted EPS were higher than expected. Read Why Did Curaleaf Report a Mixed Q1 Performance? to learn more. Meanwhile, MedMen Enterprises (OTCMKTS:MMNFF) has lost 47.9% of its stock value this year. Last month, MedMen also posted its first-quarter performance. For the quarter, the company’s revenues missed the expectations. However, the EBITDA losses were better than expected. Read Did MedMen’s Q3 Earnings Start a Path to Recovery? and Vireo Health will report its first-quarter earnings on July 16 to learn more.